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
Its launch has been made possible by a recent relaxation of capital controls by Bank Negara, MalaysiaÆs central bank, enabling domestic fund managers to invest overseas for the first time in almost 10 years.
Bank Negara originally implemented the capital controls in 1998 to stop funds fleeing the country in the wake of the Asian financial crisis. But last year Bank Negara allowed fund management houses to invest up to 30% of total assets overseas, sparking a revival in the sleepy domestic industry.
Since March last year, sixteen new offshore funds have been launched, and industry insiders say many more are expected in the coming months.
After almost a decade of only being able to invest domestically, Malaysian fund have generally fallen behind in terms of international investment experience. They have therefore looked to team up with global players, meaning Schroders now joins a list that already includes names such as Franklin Templeton and Henderson Global Investors.
HLGÆs chief executive Richard Lin says with ôSchrodersÆ regional advantage and track record, the fund will be able to provide investors access to the dynamic Asia-Pacific region with potentially attractive returnsö.
The new fund aims to provide investors with ôsteady recurring income that is potentially higher than the average fixed deposit ratesö and medium-to-long term capital gains by investing in high quality dividend yielding securities.
Market exposure, according to Lin, will be between 50-95% in foreign markets and a maximum of 50% locally. Asset class exposure will be between 50-95% in equities and between 0-30% in fixed income securities.
The HLG Asia-Pacific Dividend Fund, which is available immediately, has a total approved fund size of 500 million units priced at Rm0.50 per unit during the IPO period, which is open until the 20th March. Minimum initial investment is Rm1,000 while the minimum additional investment is Rm100.
HLG, which was founded in 1994, had a combined fund size of Rm1.71 billion at the end of December 2005.
For an in-depth look at the Malaysian mutual funds industry, see the March edition of AsianInvestor magazine.
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.