Weekly Roundup: CalSTRS Reduces China Exposure; Temasek presents advisory panel in Southeast Asia | Asset Owners | asian investor

MAIN NEWS OF THE WEEK

China fell to 19th place in the California State Teachers Retirement System’s country asset exposure ranking, following a broader withdrawal of US pensions from the world’s second-largest economy.

The pension giant’s funding allocation to China trailed South Korea, India, Mexico and Ireland at the end of May, according to its latest disclosure based on market value and income exposure. China’s weight in its overall investment book fell from 2.1% at the end of 2020 to 1% two years later, according to a Nikkei Asia report.

The pension fund had an investment portfolio of $309 billion at the time, up from $283 billion at the end of 2020. That means the value of its allocations in China has fallen by at least 69% over the past three years, according to Bloomberg. .

Fountain: Bloomberg; Nikkei Asia

Singapore state investment company Temasek launched a Southeast Asia advisory panel of business leaders from Indonesia, Japan, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Dilhan Pillay Sandrasegara, CEO and CEO of Temasek, said Temasek is looking to deploy more capital in Southeast Asia, a region whose growth is supported by strong fundamentals including young demographics, rapid urbanization and accelerating digitalization.

Together with Temasek’s European Advisory Panel and Temasek’s Americas Advisory Panel (TAAP), the new Southeast Asia panel will complement the company’s international panel, providing it with regular access and engagement with subject matter experts relevant to its activities in key markets. region of.

Temasek established its European panel in January 2016 and established its Americas panel five months later.

Fountain: Temasek

OTHER INVESTMENTS NEWS

PORCELAIN

China Investment Corporation and Malaysia’s KLCC Property Holdings Bhd are among potential bidders for a stake in an office tower in the heart of Dubai’s financial district, according to people with knowledge of the matter.

Its owners, Brookfield Asset Management and state-owned Investment Corp. of Dubai, could sell up to a 49% stake in ICD Brookfield Place, whose tenants include JPMorgan Chase & Co. and Bank of America Corp., the people said.

The joint venture has received interest from more than a dozen entities globally, including sovereign wealth and pension funds, the people said. At least one candidate has shown interest in buying the entire tower, two of the people said.

Fountain: Bloomberg

JAPAN

The Government Pension Investment Fund (GPIF) on August 4 reported a net investment gain of ¥18.983 trillion ($133.72 billion) in April-June, marking its record quarterly investment gain with an investment return. of 9.49%.

GPIF posted a net investment gain for the second consecutive quarter thanks to strong performances in the US and European stock markets. Stock prices also rose in Japan as investors welcomed market reforms at the Tokyo Stock Exchange.

The yen value of foreign currency-denominated assets held by the pension fund also soared after the weakening of the Japanese currency.

Fountain: GPIF

KOREA

Yellow Umbrella Mutual Aid Fund, the public pension fund operated by the Korean Federation of Small and Medium Enterprises, is seeking domestic private fund managers for mandates of a total size of up to W260 billion ($200 million).

The pension fund has launched a request for proposals (RFP) to hire up to six asset managers.

The standard rate of return on the funds must be an IRR of 7% or higher. Potential managers must have at least five years of private equity experience.

The deadline for RFPs is August 17 with a final decision on selected managers in October.

Fountain: yellow umbrella

SINGAPORE

Temasek has reached an agreement with Indian automaker Mahindra & Mahindra to invest INR 12 billion ($145 million) in Mahindra Electric Automobile, the company’s electric vehicle (EV) unit.

The deal will give Temasek a 1.49% to 2.97% stake in Mahindra Electric Automobile.

Temasek will join UK development finance agency British International Investments as an investor in Mahindra’s electric vehicle unit, raising its valuation by 15% to $9.8bn.

Mahindra aims to make 20-30% of its SUV sales electric by 2027.

Fountain: Mahindra and Mahindra

The Monetary Authority of Singapore (MAS) has launched a public consultation on a revised framework to strengthen surveillance and defenses against money laundering risks in the country’s single-family office (SFO) sector.

The revised framework will introduce a harmonized class exemption for SFOs with specific requirements to ensure that all SFOs are subject to anti-money laundering controls.

To qualify for the class exemption, SFOs will need to be incorporated in Singapore, notify MAS and confirm compliance with the qualification criteria when they start operating in Singapore, report annually on total assets under management after the end of each calendar year, and maintain a business relationship with a financial institution regulated by the MAS that will carry out controls against money laundering.

Submissions to the consultation can be made until September 30.

Fountain: BUT