Temasek Puts $3 Billion in Avanda’s Hedge Fund-Like Vehicle

  • Avanda Global Multi-Asset trades bonds, stocks, currencies
  • Money manager started last year by former GIC executives

Temasek Holdings Pte put $3 billion with a fund managed by Avanda Investment Management Pte, started last year by former GIC Pte senior executives.

The state investment firm invested with the Avanda Global Multi-Asset Master Fund, which is managed by the Singapore-based manager, Temasek said in its annual review on Thursday. Avanda was partly seeded with money from GIC, and was started by former managers including Sung Cheng Chih, Quah Wee Ghee and Ng Kok Song, a former chief investment officer of the sovereign wealth fund.

The Avanda Global Multi-Asset Fund trades bonds, equities and currencies, with the multi-pronged strategy bearing a similarity to those plied by many hedge funds, according to a document obtained last year by Bloomberg News. Avanda’s global fund doesn’t intend to use leverage significantly and doesn’t see itself as a typical hedge fund, the document showed.

Institutional investors are removing the most money from hedge funds since 2009 amid a period of elevated global market volatility. Hedge funds are off to their worst first-half performance, declining 1.1 percent global through June 29, according to Hedge Fund Research Inc. Asian hedge funds have lost 2.2 percent this year through June, data from Eurekahedge Pte show, with multi-strategy funds in the region on average producing a 0.3 percent gain.

Dymon, Seatown

Avanda isn’t Temasek’s only investment in the fund industry. The city-state’s investment firm in 2014 started a venture with Dymon Asia Capital (Singapore) Pte, which backs new hedge-fund managers and strategies. Temasek committed $500 million initially while becoming a minority shareholder in Dymon. Also, the state investor in August 2009 set up a wholly owned company called Seatown Holdings Pte with committed capital of more than S$4 billion to invest in assets including stocks and bonds globally.

Temasek, through its unit Fullerton Fund Management Co, and Avanda are both cornerstone investors in Cemex Holdings Philippines Inc.’s initial public offering, according to terms of the deal obtained by Bloomberg News in June. Cemex is a unit of the largest cement maker in the Americas and has set the offer price for the listing at 10.75 pesos each.

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