Temasek Holdings invested $3 billion with Avanda Investment Management, a firm started last year by former executives of Singapore sovereign wealth fund GIC.
Temasek, with S$242 billion ($179 billion) in assets, invested in the Avanda Global Multi-Asset Master Fund, Temasek said in its annual review on Thursday. Avanda was partly seeded with money from the approximately $300 billion GIC, and was started by former GIC executives including former Chief Investment Officer Ng Kok Song.
The Avanda Global Multi-Asset fund trades bonds, equities and currencies, with the multipronged 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.
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), 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 with committed capital of more than S$4 billion to invest in assets including stocks and bonds globally.