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The fund is operating on the WMG platform and is based in Hong Kong. It managed by Lena Tan, who from 2003 to 2006 worked alongside Scobie Ward helping him manage Ward FerryÆs long/short WF Asia Fund. Before then, she had been employed by Fortis Investment, Deutsche Morgan Grenfell Peregrine and Indosuez Asia Investments.
Lena Tan is joined by senior analyst Camille Vergara, who joined WMG from Wells Capital and investment adviser Tim Cheng, who used to work at Fortis Investment.
The strategy of the fund consists of core holdings amounting to approximately 50% of the long portfolio, comprising of companies that are market leaders in secular growth industries, with high returns on equity and strong cash flows. A 30-40% allocation is made to emerging growth and thematic holdings, often mid-cap companies with niche products or scalable business models, with the potential to gravitate to becoming mature core holdings eventually. The remainder is accounted for by tactical holdings with event driven, M&A or restructuring potential.
The new fund targets returns of 15% on volatility of 12%. The fund will generally have a net long bias, with gross exposure limited to 200%, and short exposure up to 70% of NAV.
The fundÆs fees are 2% and 20%. Redemptions are quarterly with 45 days notice and no lock-ups. The administrator is PFPC International and the prime broker is Morgan Stanley. The Hong Kong lawyers are Deacons.
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains
Already on the rise pre-Covid, investments into data centre assets in Asia have accelerated in the past year, fuelled by interest from investors across the spectrum.
Actively managed funds were also not found to have better odds of higher returns than more passive funds.
Investors still favour private equity assets for their higher growth, better governance structures, and diversification potential.