Latest news with #investmentstrategy
CNA
5 days ago
- Business
- CNA
Singapore GIC's 20-year annualised real return dips to five-year low of 3.8%
Singapore sovereign wealth fund GIC's 20-year annualised real rate of return came in at 3.8% in its latest financial year, sliding for the second consecutive time from 3.9% in the previous financial year. Still, GIC said long-term returns remain stable, with a targeted and diversified investment strategy. GIC CEO Lim Chow Kiat has described the current investment landscape as being filled with unprecedented uncertainty, shaped by shifting supply chains and AI's transformational force. Nasyrah Rohim reports.
Khaleej Times
22-07-2025
- Business
- Khaleej Times
Middle East sovereign investors recalibrate strategies amid geopolitical uncertainty and market shifts
Political and policy decisions have become core drivers of investment strategy, prompting sovereign investors to fundamentally reassess portfolio construction and risk management, a study showed. According to Invesco's annual Global Sovereign Asset Management Study, geopolitical tensions (84 per cent) remain the dominant short-term risks for sovereign wealth funds (SWFs) and central banks in the region, followed by a fallout from the Middle East conflict (68 per cent). An overwhelming majority (96 per cent) of respondents believe that geopolitical rivalry will be a key driver of volatility, while 91 per cent expect protectionist policies to entrench persistent inflation across developed economies. Most notably, 52 per cent of Middle East SWFs now see deglobalisation as a material threat to investment returns, underscoring a marked shift in the market narrative. Invesco's study, a leading indicator on sovereign investor behaviour, draws on the insights from 141 senior investment professionals, including chief investment officers, heads of asset classes, and portfolio strategists, from 83 SWFs and 58 central banks across the world, collectively managing $27 trillion in assets.* Active strategies gain traction alongside foundational passive exposure One of the key shifts in portfolio construction identified in the study is the greater use of active strategies by respondents. On average, Middle East SWFs maintain 78 per cent of their equities portfolio and 77 per cent of their fixed income portfolio in active strategies. The survey shows that 33 per cent of SWFs in the region are planning to increase active equity exposures over the next two years, with 50 per cent doing the same with fixed income. While passive strategies continue to provide efficiency and scale benefits, particularly in highly liquid public markets, active approaches are being used to address index concentration risks, navigate regional dispersion, and enhance scenario resilience in an increasingly fragmented landscape. At the same time, portfolio construction decisions such as asset class, geographic, and factor tilts are increasingly viewed as core expressions of active management. Fixed income redefined and reprioritised Due to a combination of geopolitical shifts and interest rate normalisation, traditional portfolio construction models are being rethought, with many SWFs turning to more dynamic portfolio approaches that includes more fluid asset allocations, enhanced liquidity management, and greater use of alternatives. Within this landscape, fixed income has assumed a new importance within SWF portfolios, becoming the second-most favoured asset class behind infrastructure. On a net basis, 30 per cent of Middle East SWFs plan to increase their fixed income exposure over the next 12 months. 'Amid geopolitical uncertainty and market shifts, investors across the Middle East are recalibrating their strategies,' says Josette Rizk, Head of Middle East and Africa at Invesco. 'Active asset management is growing in prominence due to its adaptability to a rapidly evolving economic environment. While private credit holds on to its popularity, fixed income has rebounded as the region's SWFs diversify exposures.' Private credit takes centre stage as a new diversification tool Private credit continues to gain momentum among SWFs in the Middle East, with 63 per cent accessing the asset class through funds and 50 per cent making direct investments or co-investments. The survey indicates that 50 per cent of SWFs worldwide, including 40 per cent of those based in the Middle East, plan to increase allocations to private credit over the next year. This growing interest reflects a broader rethinking of diversification as traditional stock-bond correlations erode in a higher-rate, higher-inflation environment. Sovereign investors are turning to private credit for floating-rate exposure, customised deal structuring, and return profiles that are less correlated with public markets. Once considered a niche asset class, private credit is now viewed as a strategic pillar of long-term portfolio construction. China remains a high priority in a fragmented emerging market landscape SWFs are taking a more selective approach to emerging markets. Asia (excluding China) is a high priority for 43 per cent of respondents worldwide and 25 per cent in the Middle East. Meanwhile, China is once again an important focus for 28 per cent SWFs globally and 33 per cent in the Middle East, with 60 per cent of the region's SWFs expecting to increase China allocations over the next five years. SWFs are increasingly orientating their China strategies around specific technology sectors, such as AI, semiconductors, EVs, and renewables, with 80 per cent of respondents in the region believing the country's technology and innovation capabilities will become globally competitive in the future. 'Middle East SWFs are focusing a large proportion of their portfolios on Asian economies,' adds Rizk. 'Based on the outcomes of our study, we anticipate rising investment flows between the Middle East and China, with higher growth potential in selected sectors.' Active management is viewed as essential in this environment. Just 25 per cent of Middle East SWFs rely on passive emerging market (EM) strategies, while 73 per cent access EMs through specialist managers, citing the need for local insight and tactical flexibility. Digital assets, continued exploration Digital assets are no longer seen as an outsider topic among institutional investors. This year's study shows a small but notable increase in the number of SWFs that have made direct investments in digital assets – 11 per cent, compared to 7 per cent in 2022. Allocations are most common in the Middle East (22 per cent), Asia Pacific (18 per cent), and North America (16 per cent), in contrast with Europe, Latin America, and Africa, where they remain at 0 per cent. For Middle East SWFs, the biggest barriers to investing in digital assets include regulatory challenges (100 per cent) and volatility (86 per cent). 'Investors are increasingly open to exploring the value digital assets may add to their portfolios,' says Rizk. 'In the Middle East, allocations are growing cautiously as investors balance new opportunities with regulatory challenges and market volatility.' Globally, central banks are simultaneously advancing their own digital currency initiatives, balancing innovation potential against systemic stability considerations. While no central bank respondents in the Middle East have launched a digital currency yet, 33 per cent are considering it, viewing efficiency in payments (100 per cent) and enhanced financial inclusion (44 per cent) as the biggest benefits of central bank digital currencies (CBDCs). Central bank resilience and gold's defensive role Central banks are reinforcing their reserve management frameworks in response to mounting geopolitical instability and fiscal uncertainty. In the Middle East, 67 per cent plan to increase their reserve holdings over the next two years, while 27 per cent intend to diversify their portfolios. Gold continues to play a critical role in this effort, with 63 per cent of central banks in the region expecting to expand their gold allocations over the next three years. Seen as a politically neutral store of value, gold is increasingly viewed as a strategic hedge against risks such as rising U.S. debt levels, reserve weaponisation, and global fragmentation. At the same time, central banks are modernising how they manage gold exposures. In addition to physical holdings, an increasing number are turning to more dynamic tools, such as exchange-traded funds (ETFs), swaps, and derivatives, to fine-tune allocations, improve liquidity management, and enhance overall portfolio flexibility without sacrificing defensive protection. This is expected to continue, with 21 per cent of central banks globally and 25 per cent in the Middle East saying they plan to hold investments in gold ETFs in the next five years, while 19 per cent worldwide and 25 per cent in the region intend to hold gold derivatives.
Yahoo
15-07-2025
- Business
- Yahoo
Brian Singerman's new fund has a twist, and Peter Thiel as a big backer
Former Founders Fund GP Brian Singerman and co-founder and managing partner of Quiet Capital, Lee Linden, are seeking over $500 million for a new fund called GPx, three people familiar with their strategy told TechCrunch. A significant portion of GPx's fund, potentially as much as 50%, will come from Founders Fund co-founder Peter Thiel, these people said. GPx uses a two-pronged strategy. The firm will invest approximately 20% of the capital into funds managed by emerging VCs who are targeting pre-seed and seed-stage startups; the remaining capital will go toward partnering with emerging managers on leading later-stage investments (most likely at Series B) of their breakout companies. It's a fairly different approach compared with how most venture firms operate. While typical VC firms invest all of their capital directly into startups, GPx is adopting elements of what's known as a fund-of-funds model, a less common investment strategy where a firm invests some portion of its capital into a portfolio of other funds, rather than directly in underlying assets, such as startups. While a fund-of-funds offers limited partners a convenient way to access under-the-radar or hard-to-access firms, a significant drawback is the dual layer of fees: those charged by the fund-of-funds and those by the underlying managers. While capital raised by fund-of-funds firms hit a 16-year low last year, according to PitchBook, Singerman and Linden are betting that their personal brands, unique networks, and a strategy that's only partially a fund-of-funds will encourage limited partners to open their checkbooks for GPx. Singerman and Linden may be on to something. As venture capital concentrates in the largest funds, some of those firms' best investors are no longer interested in being a part of a big machine. They are leaving the behemoth firms to launch their own investing outfits where they can be more nimble and specialized. GPx is betting that the next generation of VC investors will identify and back many strong early-stage companies, allowing Singerman and Linden's firm to co-lead later-stage investments in the emerging managers' most successful portfolio companies. Here's where GPx's strategy becomes particularly valuable: Early-stage VCs often try to exercise pro-rata rights in later funding rounds (Series A, B, and beyond), but their fund sizes typically prevent them from maintaining their percentage ownership in top-performing companies. When faced with such opportunities, small VCs often scramble to raise special purpose vehicles (SPVs) from their existing limited partners. Yet, these processes are time-consuming, allowing other investors to snap up coveted equity spots in the most sought-after deals. With GPx's capital behind them, emerging funds will have an opportunity to not only exercise their pro-rata rights but also lead a later-stage round. The Information previously reported that Singerman and Linden are launching GPx, but didn't provide details about the fund's target size and other strategy details. Singerman and Linden didn't respond to a request for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TechCrunch
14-07-2025
- Business
- TechCrunch
Brian Singerman's new fund has a twist, and Peter Thiel as a big backer
Former Founders Fund GP Brian Singerman and co-founder and managing partner of Quiet Capital, Lee Linden, are seeking over $500 million for a new fund called GPx, three people familiar with their strategy told TechCrunch. A significant portion of GPx's fund, potentially as much as 50%, will come from Founders Fund co-founder Peter Thiel, these people said. GPx uses a two-pronged strategy. The firm will invest approximately 20% of the capital into funds managed by emerging VCs who are targeting pre-seed and seed-stage startups; the remaining capital will go toward partnering with emerging managers on leading later-stage investments (most likely at Series B) of their breakout companies. It's a fairly different approach compared with how most venture firms operate. While typical VC firms invest all of their capital directly into startups, GPx is adopting elements of what's known as a fund-of-funds model, a less common investment strategy where a firm invests some portion of its capital into a portfolio of other funds, rather than directly in underlying assets, such as startups. While a fund-of-funds offers limited partners a convenient way to access under-the-radar or hard-to-access firms, a significant drawback is the dual layer of fees: those charged by the fund-of-funds and those by the underlying managers. While capital raised by fund-of-funds firms hit a 16-year low last year, according to PitchBook, Singerman and Linden are betting that their personal brands, unique networks, and a strategy that's only partially a fund-of-funds will encourage limited partners to open their checkbooks for GPx. Singerman and Linden may be on to something. As venture capital concentrates in the largest funds, some of those firms' best investors are no longer interested in being a part of a big machine. They are leaving the behemoth firms to launch their own investing outfits where they can be more nimble and specialized. GPx is betting that the next generation of VC investors will identify and back many strong early-stage companies, allowing Singerman and Linden's firm to co-lead later-stage investments in the emerging managers' most successful portfolio companies. Here's where GPx's strategy becomes particularly valuable: early-stage VCs often try to exercise pro-rata rights in later funding rounds (Series A, B, and beyond), but their fund sizes typically prevent them from maintaining their percentage ownership in top-performing companies. When faced with such opportunities, small VCs often scramble to raise special purpose vehicles (SPVs) from their existing limited partners. Yet, these processes are time-consuming, allowing other investors to snap up coveted equity spots in the most sought-after deals. Techcrunch event Save up to $475 on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $450 on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW With GPx's capital behind them, emerging funds will have an opportunity to not only exercise their pro-rata rights but also lead a later-stage round. The Information previously reported that Singerman and Linden are launching GPx, but didn't provide details about the fund's target size and other strategy details. Singerman and Linden didn't respond to a request for comment.
Khaleej Times
09-07-2025
- Business
- Khaleej Times
ASB Capital launches Mena Equity Fund to unlock long-term growth across regional markets
ASB Capital, a purpose-driven asset and wealth management firm with AUM of $5.2 billion, has launched the ASB Mena Equity Fund in partnership with Amwal Capital Partners Limited. The Fund is designed to deliver long-term capital growth through a high-conviction portfolio of publicly listed equities across the Mena region. The actively managed, long-biased strategy aims to outperform the S&P Pan Arab Composite Shariah Equities Index by combining macroeconomic insight, rigorous bottom-up fundamental analysis, and on-the-ground due diligence. The Fund will offer diversified exposure to select Mena markets while maintaining sectoral balance across financials, industrials, consumer and healthcare, amongst others. 'The Fund reflects ASB Capital's aspiration to offer disciplined, high-conviction strategies focused on long-term value creation,' said Hichem Djouhri, Senior Executive Officer at ASB Capital. 'With Mena equity markets valued at over $3.5 trillion and continuing to attract global capital, we are building an investment ecosystem that connects institutional and private investors to fundamentally strong opportunities, anchored in governance, transparency, and sustainable growth.' The ASB Mena Equity Fund is co-managed by ASB Capital and Amwal Capital Partners, both with a strong understanding in regional markets, macroeconomic trends, and active equity investments. The investment process focuses on generating alpha returns through a concentrated portfolio of fundamentally strong equities, each selected via valuation screening, intrinsic value assessments, and a long-term holding horizon. 'Amwal Capital Partners is proud to be the investment advisor of the ASB Mena Equity Fund that empowers investors to participate in the long-term growth of the region's most dynamic companies,' said Fadi Arbid, Chief Investment Officer, Amwal Capital Partners. 'With Mena equity fund inflows rising over 40% in the past year, we have seen investor demand for localized, actively managed strategies to be at an all-time high. Amwal Capital Partners has consistently outperformed the regional markets and delivered alpha across various market and macro-economic cycles. This Fund delivers on that need through deep regional expertise and disciplined execution aimed at unlocking sustained value.' The ASB Mena Equity Fund is open to both institutional and individual investors and offers Shari'a-compliant access to one of the region's compelling equity growth markets.
