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 new fund will be run by Eliza Lau, who will act as CIO, along with Denise Hu and Kamni Bharwani. It has a target return of Libor plus 10% and has projected volatility of 10%. Maximum leverage for the new fund is 1.5x and redemption is quarterly.
The Asia Focus Fund is more concentrated and has a higher return profile than the Sail Pacific Explorer fund which was launched in 2004. The new fund has 12-15 underlying hedge fund investments, while the Explorer fund is more diverse with 35 investments. Furthermore, Explorer tends not to participate in emerging hedge-fund managers, but the Asia Focus fund will have more flexibility to invest in early-stage funds.
ôI can see attractive opportunities in certain pockets within the Asian hedge-fund space, such as fixed income and credit arbitrage relative-value plays,ö says Lau, who serves as CEO and CIO of Sail Advisors. ôThe credit tightening gives openings for small- and mid-cap financing opportunities in China, India and Korea for credit strategies and private deal-focused hedge funds. Also with M&A activity on the rise in Asia, there are more opportunities for event-driven and special-situations funds.ö
HSBC is fund administrator and custodian. The fund lawyers are Deacons.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
Insto roundup: Norway's Oil Fund praises China governance efforts; NPS commits $100m to taxi-hailing app
Norway's Oil Fund welcome Chinese proposals improving transparency and shareholder protection; HK's MPF assets surge 35% year on year; Korea's NPS commits $100m to TPG consortium to invest in taxi-hailing app; Poba commits W270bn to European property; Malaysia's EPF sees investment income rise 59% year-on-year in first quarter, and more.