S Korean fund to resume investing abroad
By Song Jung-a in Seoul (FT)
Published: May 21 2009 18:40 Last updated: May 21 2009 18:40
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South Korea’s state-run National Pension Service plans to resume overseas investments next month, encouraged by the won’s sharp appreciation against the dollar.
The world’s fifth-largest pension fund, with about $189bn in assets under management, abruptly reversed course on plans to increase its overseas and equities exposure last year due to uncertainties arising from the global financial crisis.
EDITOR’S CHOICE
Suitability of target-date funds in doubt - May-03
Pensions sector bucks the trend - May-03
PPM gives go-ahead to hedge vehicles - Apr-05
Conservatism pays off for South Korea - Mar-08
Talking head: Trustees must realise a sense of urgency - Mar-08
Pension funds’ long term view demands active role - Mar-01
“Last year, we suspended overseas investments due to the volatility of the Korean won against the dollar,” said Park Hae-choon, chief executive of the pension fund, at a conference in Hong Kong. “Since the won and the dollar have stabilised, those pending investments will be resumed as of June this year.”
The NPS plans to cut bond holdings, overwhelmingly domestic, from more than 80 per cent to 50 per cent of total assets by the end of 2012, more than double equity exposure to 40 per cent and quadruple alternative investments to 10 per cent.
The fund now plans to resume its investment in riskier assets.
The NPS aims to increase its exposure to domestic equities to 17 per cent by the end of this year from 13 per cent.
“The domestic market is not big enough for the pension fund to invest and that’s why we plan to increase overseas investments,” Mr Park said, adding that an investment committee will meet next week to decide where and how much to invest.
The pension fund owns stakes of more than 5 per cent in 107 Korean companies, including Samsung Electronics and Posco.
The Korean stock market has gained 26 per cent this year after dropping more than 40 per cent last year.
Under a joint venture with Oaktree Capital Management, the US private equity fund, NPS is to make matching investments in domestic sectors ranging from infrastructure to real estate.
Oaktree earmarked $3bn for Korean investment. NPS has a similar agreement with Blackstone Group, which has set aside $2bn for South Korea.
The country’s state-run companies and financial groups held back from making big investments abroad in an effort to curb the won’s slide against the dollar last year.
The Korean won dropped about 26 per cent last year against the dollar to become the worst performer among leading Asian currencies.
It has gained about 28 per cent against the dollar since it touched an 11-year low in early March.
Until mid-2008, the NPS was moving toward more aggressive investment in riskier assets to boost returns. But high volatility amid the global crisis forced it back to safer assets.
The fund made a small profit on its assets last year as its focus on bonds protected it from volatile international markets.
Copyright The Financial Times Limited 2009
Thursday, May 21, 2009
Wednesday, May 20, 2009
Interesting Update on Japanese Hedge Funds
Samena Capital Starts Japan-Focused Stock Hedge Fund (Update2)
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By Tomoko Yamazaki
May 12 (Bloomberg) -- Samena Capital, a London-based investment firm with more than $200 million, will start a Japan- focused hedge fund, betting the nation’s stock prices will continue to rebound in the wake of the global credit crisis.
Samena Japan Absolute Return Fund will be managed by Ramiz Hasan and Celia Farnon and will start with capital of $25 million, the company said in an e-mailed statement. It will employ a so-called long-short strategy and be marketed primarily to institutional and high-net-worth investors in Asia, the Middle East, North Africa, the U.S. and Europe.
The firm’s entry to the Japanese market comes after an exodus of funds targeting the nation’s shares last year. It’s betting the Nikkei 225 Stock Average’s 32 percent rebound since a 27-year-low in March has further to go.
“Is there value still left in Japan? Yes,” Hasan, who ran a Japan-focused hedge fund at his own firm Invicta Investment Management until 2007, said in Hong Kong.
The new fund is the second after Samena Capital, established in February 2008, raised about $200 million for the Samena Special Situations Fund, which invests in companies going through transformations such as mergers, acquisitions and management changes. The fund has returned 22 percent from Aug. 15 through yesterday after keeping its investments in cash until the middle of March, according to Hasan.
Investor Appetite
The firm also plans to open a new investment advisory office in Tokyo in the next two months, Hasan said in a telephone interview.
The global hedge-fund industry decreased by $136 billion in the first three months of this year to $1.34 trillion, following record losses last year, according to Singapore-based Eurekahedge Pte. The industry has shrunk 32 percent from a peak of $1.95 trillion at the end of June 2008.
Thirty-two Japan-focused, long-short equity funds that bet on the rise and fall of the country’s stocks shut down last year. Hedge funds focused primarily on Japan saw the greatest number of closures in the Asia-Pacific region last year, according to London-based AsiaHedge magazine. Another five such funds closed in the first quarter.
In addition, 12 Japan market-neutral funds went under in 2008. Market-neutral funds seek to profit without taking a bet on the direction of the market.
“This is the best time to be investing in,” Hasan said. “If you look at the fund structure, you can hedge and you can short. We will be careful in terms of initial entry point.”
More Funds
The firm aims to capitalize on pension and health-care reforms that may follow the nation’s forthcoming election, as well as greater government appetite for engagement with countries in the Asian subcontinent, the Middle East and North Africa, it said.
Spencer Privett, joint managing partner at Maples and Calder in Hong Kong, said the law firm has worked in the last six months on at least a dozen new Cayman Island-based funds that focus on Japan.
“After a relatively quiet period we are now starting to see movement amongst international and domestic fund managers setting up new Cayman funds investing, or for sale to investors, in Japan,” he said.
Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets, bet on falling as well as rising asset prices, and participate substantially in profits from money invested.
To contact the reporters on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net Last Updated: May 12, 2009 04:12 EDT
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By Tomoko Yamazaki
May 12 (Bloomberg) -- Samena Capital, a London-based investment firm with more than $200 million, will start a Japan- focused hedge fund, betting the nation’s stock prices will continue to rebound in the wake of the global credit crisis.
Samena Japan Absolute Return Fund will be managed by Ramiz Hasan and Celia Farnon and will start with capital of $25 million, the company said in an e-mailed statement. It will employ a so-called long-short strategy and be marketed primarily to institutional and high-net-worth investors in Asia, the Middle East, North Africa, the U.S. and Europe.
The firm’s entry to the Japanese market comes after an exodus of funds targeting the nation’s shares last year. It’s betting the Nikkei 225 Stock Average’s 32 percent rebound since a 27-year-low in March has further to go.
“Is there value still left in Japan? Yes,” Hasan, who ran a Japan-focused hedge fund at his own firm Invicta Investment Management until 2007, said in Hong Kong.
The new fund is the second after Samena Capital, established in February 2008, raised about $200 million for the Samena Special Situations Fund, which invests in companies going through transformations such as mergers, acquisitions and management changes. The fund has returned 22 percent from Aug. 15 through yesterday after keeping its investments in cash until the middle of March, according to Hasan.
Investor Appetite
The firm also plans to open a new investment advisory office in Tokyo in the next two months, Hasan said in a telephone interview.
The global hedge-fund industry decreased by $136 billion in the first three months of this year to $1.34 trillion, following record losses last year, according to Singapore-based Eurekahedge Pte. The industry has shrunk 32 percent from a peak of $1.95 trillion at the end of June 2008.
Thirty-two Japan-focused, long-short equity funds that bet on the rise and fall of the country’s stocks shut down last year. Hedge funds focused primarily on Japan saw the greatest number of closures in the Asia-Pacific region last year, according to London-based AsiaHedge magazine. Another five such funds closed in the first quarter.
In addition, 12 Japan market-neutral funds went under in 2008. Market-neutral funds seek to profit without taking a bet on the direction of the market.
“This is the best time to be investing in,” Hasan said. “If you look at the fund structure, you can hedge and you can short. We will be careful in terms of initial entry point.”
More Funds
The firm aims to capitalize on pension and health-care reforms that may follow the nation’s forthcoming election, as well as greater government appetite for engagement with countries in the Asian subcontinent, the Middle East and North Africa, it said.
Spencer Privett, joint managing partner at Maples and Calder in Hong Kong, said the law firm has worked in the last six months on at least a dozen new Cayman Island-based funds that focus on Japan.
“After a relatively quiet period we are now starting to see movement amongst international and domestic fund managers setting up new Cayman funds investing, or for sale to investors, in Japan,” he said.
Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets, bet on falling as well as rising asset prices, and participate substantially in profits from money invested.
To contact the reporters on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net Last Updated: May 12, 2009 04:12 EDT
Monday, May 11, 2009
Korea - Fiscal Stimulous - Third after China and US
Korea fiscal stimulour is third largest as a percent of GDP after China and the US. China is massive at 15%.
Wednesday, May 6, 2009
iShares™ Launches Asia ETF Series in Hong Kong
iShares™ Launches Asia ETF Series in Hong Kong
Four New Funds Providing Efficient and Diversified Access to Markets in Asia
[Hong Kong, April 22, 2009] iShares, the world leader in Exchange Traded Funds (“ETFs”)1, is pleased to announce the launch of a new iShares Asia ETF Series that includes four new iShares ETFs in Hong Kong. The new iShares ETFs will provide investors with a better way to invest in Asia by offering efficient access to market segments across the region. They will begin trading on the Stock Exchange of Hong Kong (“SEHK”) on April 23, 2009. The four new iShares ETFs are:
iShares MSCI Asia APEX 50 Index ETF (Stock Code: 3010)
iShares MSCI Asia APEX Mid Cap Index ETF (Stock Code: 3032)
iShares MSCI Asia APEX Small Cap Index ETF (Stock Code: 3004)
iShares MSCI Emerging Asia Index ETF (Stock Code: 2802)
1 Source: In terms of assets under management as of 31/12/08. Barclays Global Investors, Bloomberg.
iShares Launches Asia ETF Series in Hong Kong
April 22, 2009/ P.2 of 4
The three new APEX ETFs aim to deliver instant, diversified exposure to markets across Asia by providing investors with opportunities to invest in baskets of large, mid and small cap Asian companies. The fourth ETF, the iShares MSCI Emerging Asia Index ETF, provides diversified exposure to large and mid cap companies in emerging Asian countries like South Korea, Taiwan, India, Malaysia, Indonesia, Thailand and Philippines. Commenting on the new products, Nick Good, CEO of iShares Asia Pacific said, “The launch of the iShares Asia ETF Series showcases our commitment to offering products and services relevant to the Asian market. Investors in Asia are seeking products with region-wide exposure while, at the same time, they want to know exactly what they have invested in and that their investments can be traded easily. These are the unique benefits shared by all iShares ETFs, including our four new products.” Jane Leung, Senior Director of Product for iShares Asia ex-Japan commented, “We pride ourselves on developing products that are versatile enough to meet varying investor needs – both short term and long term. Going forward, iShares will continue to provide tools for investors in Asia that help them achieve their investment objectives while managing risk in a cost-effective manner.” With the launch of these new ETFs , iShares is more than doubling its ETF offering in Hong Kong which currently includes:
iShares FTSE/Xinhua A50 China Tracker (Stock Code: 2823)
iShares MSCI China Tracker (Stock Code: 2801)
iShares BSE SENSEX India Tracker (Stock Code: 2836)
iShares is the world’s largest provider of ETFs with nearly US$325 billion2 in assets under management in ETFs. More than 360 iShares ETFs 3 are currently available in markets around the world covering a comprehensive range of asset classes, market sectors and segments. ENDS
2
Four New Funds Providing Efficient and Diversified Access to Markets in Asia
[Hong Kong, April 22, 2009] iShares, the world leader in Exchange Traded Funds (“ETFs”)1, is pleased to announce the launch of a new iShares Asia ETF Series that includes four new iShares ETFs in Hong Kong. The new iShares ETFs will provide investors with a better way to invest in Asia by offering efficient access to market segments across the region. They will begin trading on the Stock Exchange of Hong Kong (“SEHK”) on April 23, 2009. The four new iShares ETFs are:
iShares MSCI Asia APEX 50 Index ETF (Stock Code: 3010)
iShares MSCI Asia APEX Mid Cap Index ETF (Stock Code: 3032)
iShares MSCI Asia APEX Small Cap Index ETF (Stock Code: 3004)
iShares MSCI Emerging Asia Index ETF (Stock Code: 2802)
1 Source: In terms of assets under management as of 31/12/08. Barclays Global Investors, Bloomberg.
iShares Launches Asia ETF Series in Hong Kong
April 22, 2009/ P.2 of 4
The three new APEX ETFs aim to deliver instant, diversified exposure to markets across Asia by providing investors with opportunities to invest in baskets of large, mid and small cap Asian companies. The fourth ETF, the iShares MSCI Emerging Asia Index ETF, provides diversified exposure to large and mid cap companies in emerging Asian countries like South Korea, Taiwan, India, Malaysia, Indonesia, Thailand and Philippines. Commenting on the new products, Nick Good, CEO of iShares Asia Pacific said, “The launch of the iShares Asia ETF Series showcases our commitment to offering products and services relevant to the Asian market. Investors in Asia are seeking products with region-wide exposure while, at the same time, they want to know exactly what they have invested in and that their investments can be traded easily. These are the unique benefits shared by all iShares ETFs, including our four new products.” Jane Leung, Senior Director of Product for iShares Asia ex-Japan commented, “We pride ourselves on developing products that are versatile enough to meet varying investor needs – both short term and long term. Going forward, iShares will continue to provide tools for investors in Asia that help them achieve their investment objectives while managing risk in a cost-effective manner.” With the launch of these new ETFs , iShares is more than doubling its ETF offering in Hong Kong which currently includes:
iShares FTSE/Xinhua A50 China Tracker (Stock Code: 2823)
iShares MSCI China Tracker (Stock Code: 2801)
iShares BSE SENSEX India Tracker (Stock Code: 2836)
iShares is the world’s largest provider of ETFs with nearly US$325 billion2 in assets under management in ETFs. More than 360 iShares ETFs 3 are currently available in markets around the world covering a comprehensive range of asset classes, market sectors and segments. ENDS
2
AIMA Unveils Fund Of Funds Best Practices Guide
AIMA Unveils Fund Of Funds Best Practices Guide
May 6, 2009
The international hedge fund industry group the Alternative Investment Management Association has published what it is calling the first-ever global best practice guide for fund of hedge funds managers.
The guide, which was developed by well-known funds of hedge funds practitioners, focuses on areas including risk management, due diligence, disclosure to investors, valuation, management of conflicts of interest and other operational issues.
According to AIMA, it will be a practical business tool for funds of hedge funds managers and will also seek to provide relevant and insightful information for investors, regulators and policy makers, and the hedge fund industry’s service providers.
The group involved in created the guide consisted of Unigestion, Financial Risk Management; Man Investments; Fauchier Partners; Pacific Alternative Asset Management; Ivy Asset Management; HDF Finance; Penjing Asset Management and Simmons & Simmons.
Andrew Baker, CEO of AIMA, and a member of the steering group, commented, “AIMA has produced a huge body of work on sound practices and this was the ‘missing book in the library’. It is particularly important given recent events that there should be dedicated guidelines for funds of hedge funds managers. Funds of funds are a critical sector in the industry, are of particular interest to institutional investors, and it is right that AIMA has taken the lead in documenting sound practices.”
The guide is currently only available to registered users of the firm’s Web site.
May 6, 2009
The international hedge fund industry group the Alternative Investment Management Association has published what it is calling the first-ever global best practice guide for fund of hedge funds managers.
The guide, which was developed by well-known funds of hedge funds practitioners, focuses on areas including risk management, due diligence, disclosure to investors, valuation, management of conflicts of interest and other operational issues.
According to AIMA, it will be a practical business tool for funds of hedge funds managers and will also seek to provide relevant and insightful information for investors, regulators and policy makers, and the hedge fund industry’s service providers.
The group involved in created the guide consisted of Unigestion, Financial Risk Management; Man Investments; Fauchier Partners; Pacific Alternative Asset Management; Ivy Asset Management; HDF Finance; Penjing Asset Management and Simmons & Simmons.
Andrew Baker, CEO of AIMA, and a member of the steering group, commented, “AIMA has produced a huge body of work on sound practices and this was the ‘missing book in the library’. It is particularly important given recent events that there should be dedicated guidelines for funds of hedge funds managers. Funds of funds are a critical sector in the industry, are of particular interest to institutional investors, and it is right that AIMA has taken the lead in documenting sound practices.”
The guide is currently only available to registered users of the firm’s Web site.
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