Sun Hung Kai & Co. Ltd. (SHK) and Allied Group Ltd. (AGL) have jointly announced an amended Master Investment Management Agreement that enlarges the scale and scope of services provided by Sun Hung Kai Capital Partners Ltd. (the “Manager”) to Mulpha Strategic, an indirect wholly-owned subsidiary of Malaysia-listed Mulpha International Bhd. (MIB). The revised three-year arrangement, effective 1 September 2026 to 31 August 2029, adds MIB as a contracting party and permits MIB affiliates to utilise the Manager’s discretionary investment management platform.
Key commercial terms • Management fee: up to 0.50% per annum of portfolio net asset value, calculated and paid monthly. • Performance fee: up to 20% of appreciation in value of relevant securities, calculated and paid at the end of each period. • Trade commission: up to 5% of transaction value for secondary-market direct investments executed at Mulpha’s request. • Termination: either party may terminate with three months’ notice; immediate termination possible upon material breach or insolvency events.
Revised annual caps 1. Aggregate value of connected investments (including fees and product purchases) and maximum daily end-of-day portfolio balance: capped at USD 23.00 million (HKD 180.31 million) for each of the four periods—Sep–Dec 2026, FY 2027, FY 2028, and Jan–Aug 2029. 2. Fee income to the Manager: • Sep–Dec 2026: USD 1.70 million (HKD 13.33 million) • FY 2027: USD 2.00 million (HKD 15.68 million) • FY 2028: USD 2.40 million (HKD 18.82 million) • Jan–Aug 2029: USD 2.90 million (HKD 22.74 million)
Historical transaction scale • 8 Oct–31 Dec 2025: USD 0.01 million (HKD 0.06 million) in fees. • 1 Jan–30 Jun 2026: USD 0.03 million (HKD 0.25 million) in fees. • No connected portfolio balances were recorded during the same periods.
Strategic rationale The expanded agreement enables Mulpha to invest in both third-party and SHK-managed products, aligning with SHK’s strategy to grow its alternative solutions and family office services businesses. The Manager’s newly established alliances—such as partnerships with Janus Henderson, Aquilius Investment Partners, and Pinegrove Credit Partners—are expected to broaden investment options for Mulpha and increase assets under management for SHK.
Regulatory context Given the cross-shareholdings of Executive Director Mr. Lee Seng Huang—who controls 75.50% of AGL and 73.67% of SHK, and 71.66% of MIB—MIB and Mulpha Strategic are deemed connected persons to both SHK and AGL under Hong Kong Listing Rules. Because each transaction’s applicable percentage ratios exceed 0.1% but are below 5%, the arrangements require public announcement and annual review but are exempt from shareholder approval and circular requirements for both SHK and AGL. Directors with potential interests abstained from voting on the relevant board resolutions.
Impact The higher annual caps—rising to USD 23.00 million for connected investments and up to USD 2.90 million in fees—reflect an expected “significant increase in the depth and breadth of cooperation” between the parties. The agreement supports SHK’s ambitions to scale its asset-management and multi-family office platform while offering Mulpha enhanced access to SHK-originated and third-party alternative investment products.
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