AMP Capital has won one of the largest real estate mandates to come out of China from the country’s National Council for Social Security fund (NCSSF), the Sydney-based investment manager announced.
The investment manager, which manages more than A$124 billion (€115 billion; $129 billion) of real estate, infrastructure, fixed-income products and equities has been mandated by the NCSSF to mange the global listed real estate portfolio of its National Social Security Fund (NSSF).
The mandate does not extend to direct real estate investments at this stage. Nonetheless, it further exemplifies the increasing willingness by China’s largest state groups to engage international groups to take responsibility for their portfolios. NCSSF, which was formed in August 2000 to manage central and local government allocations with the aim of supporting the country’s future social security and infrastructure need, is one of the biggest investors in the country with almost RMB1 trillion (€128 billion; $157 billion) in funds under management.
The mandate won from NCSSF to manage its listed real estate investments comes after more than a decade of relationship building by AMP Capital. Director of international business Anthony Fasso said: “Both entities have co-operated in multiple areas of mutual interest including pension and investments.”
“The mandate is a major milestone for AMP Capital in China and the region given the significance of NCSSF. It highlights the growing trend of Chinese offshore investing,” Fasso said.
The mandate itself will see AMP invest NCSSF’s capital into property securities listed on exchanges including in the Americas, Europe and Asia Pacific and the portfolio will be managed from AMP’s offices in Sydney, Hong Kong, London and Chicago, the firm said.