Weekly Digest: Vanguard Super hits A$1bn AUM; HK to expand tax breaks for single family offices
TOP NEWS OF THE WEEK
Vanguard Super has amassed A$1 billion ($652 million) in funds under management in just over a year of existence.
The indexer's superannuation arm has crossed into the billions, hitting the milestone in recent weeks. It comes about 14 months on from the fund's October 2022 launch.
Source: Financial Standard
Hong Kong plans to further expand its profits tax exemption regimes for single family offices, related funds, and carried interest, including reviewing the scope of the tax concession regimes, increasing the types of qualifying transactions and enhancing flexibility in handling incidental transactions.
This is to attract more funds and family offices to establish a presence in Hong Kong, the city’s Financial Secretary Paul Chan announced in the annual budget on February 28.
Hong Kong passed the bill to grant profits tax exemption to qualifying transactions of family-owned investment holding vehicles managed by single family offices in Hong Kong in May 2023, which applies to eligible investments starting April 1, 2022.
Source: Hong Kong SAR Government
OTHER INVESTMENT NEWS
AUSTRALIA
The Retail Employees Superannuation Trust (REST) has made an initial investment of A$150 million ($98 million) into an international listed equities mandate with global investment manager Ninety One.
The mandate aims to achieve long-term total returns by investing in companies that are expected to contribute to the transition to a lower-carbon global economy. It does this by focusing on businesses in three key areas of decarbonisation: renewable energy, resource efficiency and electrification.
Source: REST
CHINA
China’s state funds have poured more than Rmb410 billion ($57 billion) into onshore shares this year to prop up the market, according to estimates by UBS Group, which expects further purchases.
State funds such as Central Huijin Investment and China Securities Finance have been key to stabilising China’s recent stock rout.
UBS based its calculations on “excess” transactions of 54 Chinese exchange-traded funds. More than 75% of the inflows went into products tracking the benchmark CSI 300 Index while another 13% flowed to those mirroring the CSI 500 Index, according to strategists including Lei Meng.
Source: Bloomberg
HONG KONG
Hong Kong launched its new Capital Investment Entrant Scheme (CIES) on March 1, allowing eligible investors to acquire residency in Hong Kong with investments of no less than $HK30 million ($3.8 million), as part of the efforts to attract more family offices to the city.
The scheme welcomes adult applicants who are non-Hong Kong or non-mainland Chinese residents and make a minimum of HK$30 million in investment
This includes a minimum of HK$27 million in qualifying financial assets and non-residential real estate, and another HK$3 million into a new CIES investment portfolio, which will be managed by the Hong Kong Investment Corporation for private investments in innovation and technology industries.
Source: Hong Kong SAR Government
The Hong Kong Federation of Insurers (HKFI) rolled out the Insurance Industry Climate Charter (Climate Charter) on February 29, encompassing a range of climate principles and objectives that are specifically tailored to the local insurance sector.
It marks the first-ever Climate Charter led by an insurance association in Hong Kong. A total of 33 companies, representing approximately 80% of the market share joined as the inaugural signatories for the Climate Charter.
The Climate Charter introduces actionable goals within different sections, including business operations and governance, investments, products and underwriting, societal engagement, reporting and disclosures, and more.
Source: Hong Kong Federation of Insurers
JAPAN
Four leading Japanese nonlife insurance companies - Aioi Nissay Dowa Insurance, Sompo Japan Insurance, Tokio Marine & Nichido, and Mitsui Sumitomo Insurance - have announced plans to divest their entire cross-shareholdings valued at more than ¥6 trillion ($40 billion) following a scandal with fixed prices in contracts with corporate clients.
This move, spurred by a recent price-fixing scandal and subsequent government scrutiny, signifies a pivotal shift in Japan's insurance sector.
It aims to foster a more transparent and competitive market landscape, after the government pressured them to abandon the decades-old practice.
Source: Bloomberg
KOREA
Korea’s National Pension Service (NPS), the world’s third-largest pension fund, posted a 13.59% annualised return last year, making its net asset value W1,035.8 trillion ($776.5 billion) as of the end of 2023.
The return rate is the highest since its fund management arm was established in 1999. Domestic and overseas stocks achieved 22.12% and 23.89% returns, respectively.
Local and overseas bonds respectively logged 7.4% and 8.84% returns, while alternative investments posted a 5.8% return last year.
Source: NPS
NPS is expected to invest up to 11 trillion won ($8.2 billion) in undervalued local stocks to join the government’s push to buoy the country’s anaemic stock market.
According to sources in the investment banking industry, the country’s sole stock market operator the Korea Exchange is in discussion with NPS to develop a new index tracking undervalued local stocks following the government's guidance to bolster their corporate value.
Source: Korea Economic Daily
Financial authorities are reviewing options to prevent financial companies that committed wrongful acts or unfair market practices from participating in government-led financial projects or handling the national pension fund's operation, industry officials said March 1.
Source: Korea Times
Teachers’ Pension has selected Mirae Asset Global Investment as an advisor for overseas fixed income investments.
The Korea-based asset manager will be responsible for selecting managers and creating discretionary accounts for the pension fund for employees at Korean private schools, who launched the mandate in January and announced the winner on February 28.
Sources: Teachers’ Pension
MALAYSIA
The Employees Provident Fund’s (EPF) investment assets grew to MYR1,135.82 billion, an increase of 13% compared to 2022.
The increase comprised of income from the portfolio and collection of contributions of RM97.56 billion in 2023, an increase of 15% from 2022.
Equities made a return on investment (ROI) of 8.68%, while private equity generated ROI of 9.69%, fixed income 4.41%, real estate and infrastructure 5.04%, and money market instruments 4.93%.
Source: EPF
SINGAPORE
Temasek and BlackRock, through their partnership called Decarbonization Partners, led a $150 million series B funding in Antora Energy, a US-based manufacturer of thermal batteries that delivers zero-emission industrial energy.
This financing round will enable Antora to ramp production of its factory-made thermal batteries to deliver zero-emissions energy to industrial customers.
Emerson Collective, GS Futures, the Nature Conservancy, and a subsidiary of NextEra Energy Resources also participated in this round, alongside existing investors.
Source: Business Wire
The above briefs are curated from press releases and third-party media sources.