MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
Both firms are now waiting for the State Administration for Foreign Exchange to give them the actual quota sizes, which they expect in six-to-eight weeks, at which point they can provide more details about product development.
Ajay Srinivasan, managing director at Prudential Asset Management in Hong Kong, says the quota size will shape the nature of the product Pru can create for international investors.
Tony Archer, managing director at Morgan Stanley Investment Management, says the firm intends to offer something innovative with its quota. Giving international investors direct China exposure is part of the firmÆs $15 billion global emerging markets business for institutional clients, he adds.
They join a handful of other fund managers with their own QFII licenses. This spring, Goldman Sachs Asset Management offered an A-share fund to institutional investors using its $200 million QFII quota, while JF Asset Management offered a retail product to Hong Kongers with its $150 million quota.
Prudential has a joint venture in China with Citic, initially a life insurance JV between Prudential Asia Corporation and Citic that recently expanded into a mutual funds JV. Citic Prudential Fund Management launched its first product in March, a balanced fund. Prudential Asset Management has not offered A-share products to international investors before.
Morgan Stanley Investment Management does not have a domestic JV or an on-the-ground presence in China, but it has managed A-share products out of Singapore for international investors, accessing the market through third-party brokers with QFII licenses (including Morgan Stanley itself).
Fund managers seek their own QFII licenses because they donÆt have to compete for a share of a third partyÆs quota, and because it removes a layer of fees to end investors.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.