A SHEFFIELD HAWORTH PUBLICATION A summary featuring people news, industry updates with market trends and analysis ASIAN ASSET MANAGEMENT Nick Aylwin-Foster Q1 2019 George Windsor Karla Ng Q1 2019, Asset Management Overview – Asia

MARKET OVERVIEW

The first quarter has been mixed. Whilst there has been robust hiring in the asset management community, many of these hires are legacy 2018. Conditions elsewhere continue to impact sentiment towards Asia, cooling the demand for growth hires. Certain themes continue; select hiring into distribution for example, but notable is the increase of hires into supporting functions. Alternative managers, particularly Infrastructure and Real Estate, remain active. Leadership hiring has continued to be unexpectedly high but likely linked to the ongoing generational change in the Asian industry. Hiring relating to China continues at a subdued pace, with commentators drawing connections between the ongoing trade war and lack of appetite, particularly amongst US asset managers, to commit to the onshore market.

▪ Union Bancaire Privée has established an asset management unit in Taiwan. TABLE OF CONTENTS Market Overview ▪ PwC has predicted that the AUM for the Asian Asset and Wealth Management industry is expected to reach USD29.6 Business Development trillion in 2025 up from USD15.1 trillion in 2017 at a total compound annual growth rate of 8.7%. It points to growth - Institutional across retail and institutional investors along with increased appetite for alternatives. The report also suggested there will be - Wholesale a shift to focus on specific outcomes to reflect changing demand. China

Investment and Product “…hiring into China-focused roles has been

- Equities relatively muted…”

- Fixed Income ▪ The World-Wide Fund for Nature has launched the Asia - Multi-Asset Sustainable Finance Initiative. The aim is to shift financial flows towards sustainable, economic, social and environmental - Alternatives causes. It also intends to bring together senior individuals from various industries to enhance and promote ESG principles into Contact Details any decision-making processes.

▪ China has granted approval to S&P Global Ratings to act as the first foreign ratings agency in the country.

▪ The Asia Regional Fund Passporting scheme was launched this quarter. The scheme will connect the fund markets of Australia, Japan, South Korea, New Zealand and Thailand. Japan, Thailand and Australia have completed preparations for implementation, whilst South Korea and New Zealand are in later stages.

This is a private and confidential document prepared by Sheffield Haworth

Q1 2019, Asset Management Overview – Asia

BUSINESS DEVELOPMENT

Institutional sales hiring has been robust, both at regional and country level, whilst hiring into wholesale distribution has been limited. As asset managers continue to improve their client coverage model in-region we have recorded various marketing and product specialist hires in the first quarter.

INSTITUTIONAL

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Fullerton Fund Management has hired Mark Yuen as Head of Business Development. Mark was previously Head of Institutional Sales with Eastspring Investments.

Manulife Asset Management has hired Elvin Tharm as Managing Director of Asia Retirement Strategy and Business Development. He joins from Mercer and will be based in Hong Kong.

Merian Global Investors has appointed Edward Ho as Head of Sales for Hong Kong. He joins from Wells Fargo Asset Management.

Janus Henderson has appointed Spencer Seto as Head of Institutional Sales for Asia ex-Japan. He joins from PGIM and will be based in Singapore.

Allianz Global Investors are relocating Dianna Enlund to Australia as Head of Institutional Sales, Australia. She was previously based in Singapore as a Product Specialist.

Hillhouse Capital has hired Jonathan Lui in their investor relations team. He joins from Campbell Lutyens.

UBS Asset Management has hired Verrine Hsu as part of their Greater China Sales team. She joins from Mesirow Financial and will be based in Hong Kong.

Ares Management has hired Michael Chen as part of their institutional business to cover Hong Kong and South East Asia. He was previously with UBS Asset Management.

Apollo Global Management has hired Paul Poh from UBS Private Wealth as part of their investor relations team.

This is a private and confidential document prepared by Sheffield Haworth

Q1, 2019 Asset Management Overview, Asia

WHOLESALE

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Goldman Sachs Asset Management has hired Gladys Chan to head their private bank sales team in Hong Kong. She was previously with First State Investments.

Janus Henderson has hired Serena Sim as Head of Wholesale Distribution for Asia ex-Japan. She joins from BNP Paribas Asset Management.

Capital Group has hired Richard Chan to cover North Asian intermediary clients. He joins from PIMCO and will be based in Hong Kong.

HSBC GAM has hired Wilson Au as part of their wholesale distribution team. He was most recently with Fidelity International.

RELATED HIRES:

State Street Global Advisors has hired Pauline Siu as a Marketing Manager. She was previously with Janus Henderson Investors.

Willis Towers Watson has hired Edwina Ho as an Investment Director focusing on Greater China. She was most recently at Legg Mason covering institutional clients in China.

Amundi has hired Carmon Cheung for their marketing team. She joins from Income Partners.

BlackRock has appointed Amar Gill as Head of Investment Stewardship for Asia-Pacific. He joins from CLSA and will replace Pru Bennett who is retiring.

BNP Paribas Asset Management has hired Gabriel Wilson-Otto as Head of Stewardship for Asia-Pacific. He joins from Goldman Sachs and will be based in Hong Kong.

Fidelity Investments has relocated Steve Bramely to Hong Kong from London. He is an Investment Director within the Fixed Income team.

KKR has hired Kate Richdale as Head of Strategy and Business Development. She joins from Goldman Sachs and will be based in Hong Kong.

Wellington Management has hired Owen Chin as a Client Services Manager within the Hong Kong based institutional sales team. He joins from BNP Paribas Asset Management.

This is a private and confidential document prepared by Sheffield Haworth

Q1, 2019 Asset Management Overview, Asia

SELECT LEADERSHIP MOVES:

Lumen Capital Investors has hired Michael Chin as Vice Chairman. He joins from UBS Asset Management where he was Singapore CEO.

BNP Paribas Asset Management has appointed Daisuke Toki as CEO and President of Japan. He succeeds Ryohei Shimazaki who will retire. Daisuke joins from Deutsche Asset Management where he was President of Japan.

Eastspring Investments has made changes to its senior leadership team. Chief Executive, Guy Strapp, CFO, Ted Pull, and COO, Phil Stockwell, are all leaving. Seck Wai-Kwong is the new CEO, he was previously with State Street as Asia-Pacific CEO.

UBS Asset Management has named Raymond Yin as Head of Asia-Pacific. He replaces Rene Buehlmann who is taking a sabbatical. Raymond will be based in Shanghai and continues in his previous role as Head of China.

Sumitomo Mitsui Trust Asset Management has appointed Akiyoshi Nagashima as CIO. He will be based in Tokyo.

Columbia Threadneedle Investments has promoted Jon Allen to Head of Asia-Pacific. He was previously Head of Asia-Pacific Distribution.

PineBridge Investments has appointed Anthony Fasso as Asia-Pacific CEO. He will be based in Hong Kong and was previously CEO for the international business at AMP Capital Investors.

Nikko Asset Management has appointed Hideo Abe, Executive Vice Chairman, and Junichi Sayato, Executive Deputy President, as Representative Directors and Co-CEOs following Takumi Shibata stepping down as President and CEO.

Polymer Capital Management, an Asian Equities market neutral , has appointed Angus Wai as Chief Executive. He joins from Folger Hill Asset Management.

Nomura Asset Management has promoted Junko Nakagawa to CEO. She succeeds Kunio Watanabe who will become Executive Chairman of America for Nomura Holdings.

Western Asset Management’s Henry Hamrock will relocate to the US. He will be replaced by Michael Dale as Head of Asia-Pacific who relocates to Singapore from Australia.

This is a private and confidential document prepared by Sheffield Haworth

Q1, 2019 Asset Management Overview, Asia

CHINA

Hiring into China-focused roles has been relatively muted in Q1. In part, there have been no new approvals for the PFM licence which drove a lot of the hiring in ‘17/’18, but equally the lack of progress from a regulatory perspective and the ongoing trade war with the US continue to impede plans for growth. Furthermore, the likelihood that there will be a significant change to the regulatory landscape has given pause for thought as managers reassess their best path for entry into China.

GENERAL NEWS:

J.P. Morgan AM has been given approval for its Global Bond fund and Asia Equity Dividend fund to be sold under the Northbound MRF scheme. The firm has also been given permission to distribute three further funds under the Southbound link.

The China Securities Regulatory Commission has proposed that it will merge the QFII and RQFII scheme to help improve appeal to foreign investors.

China’s State Administration of Foreign Exchange (SAFE) has lifted the QFII threshold to USD300b from USD150bn. The scheme allows institutional investors access to China’s Equity and Bond markets.

Heng An Standard Life, an insurance joint venture by and Tianjin Teda International has been granted approval to set up a subsidiary. However, it will likely take at least a year for operations to begin as the JV needs to set up the insurance company before the business licence is provided.

SELECT PEOPLE MOVES:

Principal Global Investors has appointed Xin Shao as Managing Director for China, he will be based in . Xin joins from Beijing Jiumu Capital Management Company.

DWS has hired Vivien Keung as a China Credit Analyst based in Hong Kong. She joins from CIFM Asset Management.

State Street Global Advisors has appointed Alex Sun as a Managing Director and Head of China. He will be based in Shanghai and joins from HSBC Jintrust.

Franklin Templeton has appointed Jin Mei as Head of it WFOE in Shanghai. He joins from Natixis Asset Management.

This is a private and confidential document prepared by Sheffield Haworth

Q1, 2019 Asset Management Overview, Asia

INVESTMENT AND PRODUCT

EQUITIES

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GAM has hired Rob Mumford as an Investment Manager for its Global Emerging Markets team. He will be based in Hong Kong and joins from MNP Advisers, a boutique investment manager.

Millennium Capital Management has hired Woonki Jeon as a Quant Trading Analyst from J.P. Morgan.

Neuberger Berman has hired Soojin Park as an Investment Analyst. Soojin joins from .

State Street Global Advisors has hired Valery Derbaudrenghien as a Senior Dealer on the Equities Desk. She joins from BNP Paribas Asset Management.

Schroders has hired Alice Liu from Dymon Capital. She joins as an Investment Analyst.

Millennium Management has hired Pan Hui as a Portfolio Manager. Pan joins from Point72.

GF Fund Management has hired Cyrus Chong as an Assistant Portfolio Manager. He joins from PineBridge Investments.

Balyasny Asset Management has hired Shinichiro Horiuchi as a Portfolio Manager. He joins from Horizon Asset Management.

FIXED INCOME

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Sun Life has appointed Oliver Szwarcberg as Head of Research, Asia. He was most recently with Fidelity International as Head of Fixed Income Asia.

Segantii Capital has hired Nicholas Mesken as a trader. He joins from HPS Investment Management where he was a Credit Trader.

This is a private and confidential document prepared by Sheffield Haworth

Q1, 2019 Asset Management Overview, Asia

Multi-Asset Investment

Barings has hired Stanley Shek as a Multi-Asset Client Portfolio Manager. He joins from Fidelity International where he was a Fixed Income Product Specialist.

AMP Capital has named Debbie Alliston as CIO for its Multi-Asset group. She will be based in Sydney and was previously Head of Multi-Asset Portfolio Management.

NAB Asset Management has hired Mahesh Fonseka as a Multi-Asset Investment Specialist. He will be based in Australia and was most recently with Asset Management in Hong Kong.

BNP Paribas Asset Management has hired Paul Sandhu as Head of Multi-Asset Quant Solutions. He joins from Conning Asia-Pacific and will be based in Hong Kong.

Morgan Stanley Investment Management has set up a global balanced risk control team to support its Multi-Asset capability in Singapore. Andrew Harmstone, who leads this practice, will relocate to Singapore from London.

J.P. Morgan Asset Management has hired Sylvia Sheng as a Global Strategist within the Multi-Asset Solutions team. She joins from Bank of America Merrill Lynch and was previously a China Economist and Research Analyst.

ALTERNATIVES

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APG Asset Management has hired Nicholas Ting as an Assistant Portfolio Manager in their listed Real Estate Business in Hong Kong. He joins from LaSalle Investment Management.

Barings Private Equity Asia has appointed Paul Gately as Managing Director of Real Estate. He will be based in Sydney and joins from CLSA Real Estate.

Manulife Real Estate has appointed Kenneth Tsang as Head of Real Estate Asset Management for Asia. He was previously General Manager for HKI Holdings Group.

UPDATES:

Fullerton Fund Management has set up a Private Equity team and appointed Tan Huck Khim to lead it. Tan previously worked for .

SoftBank has set up a Real Asset Investment unit and hired Hiroki Kimoto as General Manager of the division. He joins from Goldman Sachs.

CapitaLand has purchased Ascendas-Singbridge from Temasek making it Asia’s largest real estate manager.

Aberdeen Standard Investments has acquired Orion Partners. Orion Partners manages circa USD900m of direct real estate investments and has offices in Hong Kong, Tokyo, Seoul and Singapore.

This is a private and confidential document prepared by Sheffield Haworth

Q1, 2019 Asset Management Overview, Asia

Nick Aylwin-Foster e: [email protected] Director t: +852 3008 1930

George Windsor e: [email protected] Senior Associate t: +852 3008 1934

Karla Ng e: [email protected] Associate t: +852 3008 1939

The information contained in this document has been compiled by Sheffield Haworth from sources believed to be reliable and is presented in good faith, but no representation or warranty, express or implied, is made as to its accuracy, completeness or correctness. This document does not constitute or form part of, and should not be construed as, advice. Sheffield Haworth accepts no liability whatsoever from any consequential loss or damage arising from any use of this document or its contents. This document may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose, without the prior written consent of Sheffield Haworth.

This is a private and confidential document prepared by Sheffield Haworth