TLDR:
– HKBU’s endowment fund plans to enhance investment capabilities through diversification and building out an investment office.
– Treasurer Kevin Liem is using a multi-pronged approach to ensure the fund thrives in volatile markets.
Article Summary:
Hong Kong Baptist University’s (HKBU) treasurer, Kevin Liem, is focusing on enhancing the institution’s endowment fund investment capabilities. The fund is looking to diversify its portfolio and gradually build out an investment office. Initially using a traditional 60/40 beta portfolio, the fund has now included a 10% allocation to liquid alternative hedge fund assets to enhance diversification.
Liem chairs HKBU’s endowment fund, pension fund, and innovation venture capital funds. He is planning to incorporate private assets cautiously while exploring the idea of establishing a small investment office to effectively manage these assets. Liem sees opportunities in private markets, particularly in private credit amid low-yield environments. He emphasizes the need for due diligence when selecting managers for private market investments.
Addressing the complexities of investing in China, Liem acknowledges the geopolitical realities and the need for a pragmatic approach for a Hong Kong institution. He stresses the importance of understanding the value-add of managers, particularly in private credit investments. The fund is taking a measured approach to risk and seeking opportunities in volatile markets under Liem’s leadership.
