TOP NEWS OF THE WEEK

Singapore’s sovereign wealth fund GIC has reportedly acquired a 5% stake in Brisbane Airport from a client of Igneo Infrastructure Partners.

The deal, which reportedly closed in August 2024, comes with Brisbane Airport’s reported EBITDA of US$458.8 million (AU$706.2 million) and revenue of US$636.6 million (AU$979.9 million). million AUD) for the 2024 financial year.

The current ownership structure reportedly includes QIC (30.7%), Igneo (24.8%), IFM Investors (20%), Royal Schipol Group (19.6%), Spirit Super (4.9%), with GIC allegedly holds 5% of the shares. The airport will operate under a privatized lease until 2047, extendable to 2096.

Sources said the acquisition is in line with Brisbane Airport’s decade-long $3.25 billion development plan, with $389.8 million earmarked for the 2025 financial year.

Details of the deal and valuation details were not disclosed, although this transaction reportedly followed Igneo’s earlier attempt to sell a larger 12.5% ​​stake via Macquarie Capital in June 2023.

Source: AFR

MORE INVESTMENT NEWS

The Kansas State Pension Fund sold about $300 million worth of Chinese securities following the passage of the Kansas Countries of Concern Divestment Act, which directed state funds to remove investments held in China and Hong Kong, among other countries.

The Kansas Public Employees Retirement System sold 12 securities worth $294 million, or 1% of the fund’s total investment, from 10 Chinese and Hong Kong holdings.

The fund’s chief investment officer, Bruce Fink, said it had increased due diligence and would no longer invest in countries of concern going forward.

Other states, including Florida, Missouri and Indiana, have followed suit and passed laws to divest assets from Chinese investments.

Source: Nikkei Asia

LeapFrog Investments has secured $115 billion in its fourth fundraising cycle, with $1.02 billion in primary commitments and co-investments, exceeding its initial target of $1 billion.

The fund has received major institutional support from Temasek, AIA and Prudential Financial, as well as development institutions such as the European Investment Bank and the US International Development Finance Corporation.

Additional support comes from global asset managers Sumitomo Mitsui Trust Bank and Van Lanschot Kempen, healthcare investor Eli Lilly and Company, and foundations such as the Ford Foundation and the IMAS Foundation (IKEA).

Source: LeapFrog

AUSTRALIA

Australia’s superannuation industry has reached total assets of US$2.6 trillion (AU$4.1 trillion), growing 13.4% in the year to September 2024. The sector received $123 billion in contributions, up 13.1% in the period, driven by mandatory employer payments currently set at 11.5% of workers’ salaries.

Mercer predicts the industry’s assets will more than triple by 2048, with 12 funds expected to have $65 billion each by 2028. However, the IMF has raised concerns about the sector’s increasing allocation to unlisted investments, which now account for over 20% of holdings.

The Reserve Bank of Australia has also highlighted potential systemic risks, pointing to previous cases where pension funds have sold large amounts of debt during times of market stress.

Of total assets, APRA regulates about $1.8 billion, while self-managed funds account for about $650 billion.

Source: BNN Bloomberg

BHUTAN

Bhutan, through its sovereign wealth fund Druk Holding and Investments Ltd. innovative financing approaches for its $22.5 billion hydropower expansion project.

The plan calls for increasing hydropower capacity by 15 gigawatts by 2040, in addition to the current 2.4 gigawatts and 3.1 gigawatts under construction.

The financing strategy combines blended financing and green bonds, departing from the traditional reliance on Indian loans and concessional grants.

Major investors such as Adani Group, Reliance Group and OPEC Fund for International Development have shown interest in the project, which is part of Bhutan’s economic revitalization strategy.

The World Bank will provide technical assistance for blended finance operations while the government develops green bond infrastructure. These financing mechanisms will also support an additional 5 gigawatts of solar capacity.

The country estimates its total hydropower potential at 33 gigawatts, although analysts call previous project delays worrisome.

Source: Bloomberg

NEW ZEALAND

The $499.5 million Kempen SDG Farmland Fund has announced new acquisitions in New Zealand.

The fund is supported by the Dutch insurance company Dela, the insurer De Goudse and the PostNL pension fund, the pension system of the Dutch postal service.

The fund has expanded its New Zealand portfolio by purchasing part of Gold Water Orchard, a 62-hectare organic apple farm, from grower John Bostock. The value of the acquisitions was not disclosed.

The fund focuses on sustainable and regenerative farming practices with specific goals to improve soil health, increase biodiversity and reduce greenhouse gas emissions.

Source: IPE

PHILLIPINES

As the new chairman of the ASEAN Social Security Association (ASSA), the Philippines is working to attract investments from Southeast Asian pension funds that manage $1.3 trillion in collective assets.

The Government Service Insurance System (GSIS), the Philippines’ public pension fund that manages $31 billion of these assets, has identified infrastructure, education, healthcare and food security as key investment sectors.

The initiative, supported by regional leaders and formalized through the ASSA Sustainability Pledge, aims to leverage the ASEAN Free Trade Agreement to increase cross-border investment opportunities. Malaysian pension funds have already expressed particular interest in regional infrastructure projects.

Source: BusinessWorld

SOUTH KOREA

South Korea’s National Pension Service (NPS) reported a preliminary return on capital of 9.18% for the first nine months of 2024, equivalent to US$70 billion (KRW97 trillion), driven by the strong performance of foreign equity holdings.

The pension fund’s assets under management totaled $825.4 billion at the end of the third quarter, maintaining its position as the third largest pension fund in the world. This includes $486.5 billion in cumulative capital gains since 1988.

Returns across asset classes were 6.97% for global fixed income, 4.09% for domestic fixed income, 5.05% for alternatives and 0.46% for domestic equities.

Source: Korean Economic Daily

South Korea’s Construction Workers Mutual Aid Association (CWMAA) is seeking bids from local financial institutions to administer a defined benefit pension system worth 14 billion won ($10.02 million) for its 220 employees.

The association will select up to three institutions with the requirement that they must have experience in pension administration and asset business operations in South Korea.

The competition runs until November 29th and the winners will be chosen by December 4th.

CWMAA has total assets of around 4.6 trillion won (US$3.27 billion) and serves 5.5 million construction workers.

Source: Asia Asset Management

(The above short reports were compiled from press releases and third-party sources.)