The Investment Management Corporation of Ontario (IMCO) is one of Canada’s largest institutional investors, managing over CA$73 billion in assets. As Canada’s pension funds and sovereign wealth funds expand into Asia, IMCO is the latest to set up an Asian hub in Singapore. With strong economic growth and opportunities in Southeast Asia, Singapore serves as a strategic base for foreign funds looking to deploy capital in the region across various asset classes.
IMCO seeking to hire around 200 for new Singapore office
According to reports, IMCO plans to hire about 200 employees for its new Singapore office. The move comes as Canada’s major pension and sovereign wealth funds like CPPIB and OTPP already have a presence in the city-state. As the fastest growing region, Asia is key to the funds’ global allocation strategy. An Asian hub provides proximity and local expertise to explore investment prospects in areas like infrastructure, logistics, healthcare and more.
Singapore attracting more sovereign fund offices
With its strategic location, business-friendly environment, and talent base, Singapore has become an attractive location for sovereign wealth funds setting up new offices. IMCO will join the likes of GIC, Mubadala, QIA and KIC with operations in the city. SWF industry association IFSWF noted that Singapore is drawing funds looking to deploy capital into Southeast Asia and Australia.
Pension funds seeking alternative investments in Asia
Institutional investors like pension funds and sovereign funds are increasing targeting alternative assets in Asia, beyond just stocks and bonds. Many funds find Singapore a good base to explore private equity, infrastructure and real estate deals in fast-growing markets like Vietnam, Indonesia and India. The region’s youth demographics and rising middle class spells opportunities.
Talent and innovation among Singapore’s draws
A key reason Singapore has emerged as a hub for foreign asset owners and asset managers is its access to talent. SWF industry executives point to the country’s focus on education and technology, and partnerships with GIC to develop new investment capabilities. For IMCO, basing its Asia team in Singapore taps them into the financial sector ecosystem.
The establishment of an Asian investment office in Singapore by Canada’s IMCO highlights the growing focus by pension funds and sovereign investors on Asia-Pacific. Singapore’s business environment, geographic position and hunger for talent make it an ideal location. More institutional funds can be expected to set up regional hubs there to capitalize on Southeast Asia’s opportunities.