The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
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
Record low borrowing costs in Australia are feeding demand for the country's real estate, with domestic and global investors raising their allocations into the sector.
Experts have a diversified view on the appeal of private assets across the region, but one thing's for certain - inflows are rising, particularly into China and the US.
Malaysia's Armed Forces Fund hires new CEO; Canada's Omers appoints Asia capital markets managing director; HSBC Asset Management creates alternatives unit, appoints CIO as its head; Bank of Singapore names global wealth head; Aware Super hires IFA head; Hong Kong names acting head for MPFA; Schroders adding to Asia ESG headcount; and more.
Asian fixed income assets – including Hong Kong dollar (HKD) bonds – are luring growing numbers of global investors who are striving for reliable and consistent returns amid macro uncertainty compounded by rising inflation and rates, according to HSBC Asset Management.