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
The concept behind the original æHSFÆ fund was based on 9/11, and in that context, æhomelandÆ was referring to the USA in order to address that investment market. Ultimately the investor range turned out to be wider than just North America, picking up interest in Europe and Japan. So far it has repaid about 50% of the original principal invested via several exits.
The new fund retains that branding, but is wider in its scope. The fund has a 10-year life and a 10% target IRR. The management fee will be 2.5% and the minimum investment is $5 million.
HSF II anticipates using between 20-40% of its capital to fund Asian investee companies. The investee companies in HSF I are all US-based. One-third of those investee companies have also established rep offices in Asia, although are still at a very early stage of development and have devoted only limited resources so far
HSF I was launched in response to the confrontation of international terrorism versus national security. However, the fundsÆ emphasis going forward will be on protecting and sustaining a countryÆs critical infrastructure rather than more narrowly on national security. This might include transportation, ports and cargo, power grids, IT systems, food supplies and corporate security such as protection of confidential information/trade secrets.
The new HSF fund will also cover protection against natural disasters and alternative energy, with the intention of lowering reliance on oil-based energy.
ôUnfortunately, turmoil and disaster are higher probabilities in todayÆs world whether we like it or not,ö says Arthur Yama, managing director at Aquitaine Investment Advisors. ôThe companies in the fund are meant to protect/defend/cope/recover. If their products fail in the face of a challenge, their marketable value is more likely to drop. Failure on the part of an investee company will only lead to a reduced price when that company tries to secure a trade sale or go public.ö
Investee companies in HSF 1 include AgION Technologies that produces antimicrobial products to combat bacterium and bug attacks, and Accubuilt, which is the worldÆs largest manufacturer of funeral hearses.
ôCommercial threats are just as real in Asia as anywhere else,ö says Arthur Yama. ôThe financial value of critical infrastructure in Asia has grown immensely as domestic markets have grown a lot and as AsiaÆs infrastructure is a critical part of the global economy. We think sophisticated Asian institutional investors will realise this.ö
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
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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.