ASIA ASSET MANAGEMENT Q2 2020

A Sheffield Haworth Publication featuring people news, industry updates with market trends and analysis

Nick Aylwin-Foster George Windsor Emma Quan

ASIA ASSET MANAGEMENT – Q2 2020

CONTENTS

MARKET OVERVIEW pg 3

BUSINESS DEVELOPMENT pg 4

LEADERSHIP pg 6

CHINA pg 7

INVESTMENT & PRODUCT pg 9

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ASIA ASSET MANAGEMENT – Q2 2020 MARKET OVERVIEW

INTRODUCTION

Unsurprisingly, COVID-19 has continued to have a major effect on hiring through Q2. As containment measures were implemented around the world, offices closed and hiring plans were shelved whilst asset managers reacted to a volatile market and how to deal with an unprecedented shift in the manner of work. In Asia, the loosening of restrictions in some countries in the past month has provided some cautious optimism, although this has not translated to a return to normal hiring patterns and we anticipate the difficult conditions to continue throughout the remainder of the year. Firms are selectively adding talent, but the bar for approval by management is understandably much higher.

On a separate note, it has been encouraging to hear how employees and employers have reacted to work from home measures and there is a general sense that productivity levels have remained constant (or improved) whilst the use of remote-working technology has allowed teams to stay connected.

NEWS

◼ Madrid-headquartered Allfunds has opened a new office in , following the Type 1 and Type 4 licenses granted by Hong Kong’s Securities and Futures Commission (SFC).

◼ London-based Architas, the fund-of-funds specialist unit of the Group, has been granted three licenses to operate as an asset management firm in Hong Kong.

◼ Singapore property manager ARA Asset Management has acquired a 52.08% stake in Minterest Holdings Pte, an online crowdfunding platform in the city- state.

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ASIA ASSET MANAGEMENT – Q2 2020 ◼ Cambodia’s securities regulator has approved in principle four new fund management firms (Reits Co Ltd, Ants Capital Co Ltd, IS4KH Asset Management Plc, and Belt Road Capital Management (Cambodia) Co Ltd) to operate in the country.

◼ GIC and Equinix Inc, a US technology company, are forming a US$1 billion joint venture to develop data centres in Japan.

◼ LGT is restructuring its three business units into independent companies, LGT Private Banking, LGT Capital Partners, and LGT Lightstone, effective January 2021.

◼ has acquired a 49% stake in Mahindra Asset Management, the wholly-owned subsidiary of Mahindra and Mahindra Financial.

◼ BrightSphere is closing its Hong Kong office which currently serves as a sales rep office.

IN ASIA, THE LOOSENING OF RESTRICTIONS IN SOME COUNTRIES IN THE PAST MONTH HAS PROVIDED SOME CAUTIOUS OPTIMISM.

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◼ Jupiter Asset Management has received shareholder approval for the acquisition of Merian Global Investors.

◼ Raiz Malaysia, the joint venture subsidiary of Sydney-based Raiz Invest, has been granted a digital investment management license by the Securities Commission Malaysia.

◼ UBP has formed a strategic partnership with Bell Asset Management which gives UBP’s clients access to Bells products. In return, Bell AM will be able to leverage UBP’s distribution channels in Europe, the Middle East, and Asia.

◼ The Hong Kong Exchange and Clearing is expected to launch a sustainable and green exchange or STAGE, in the second half of the year. It will provide investors access to a database of sustainable and green investment options.

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ASIA ASSET MANAGEMENT – Q2 2020

BUSINESS

DEVELOPMENT Arguably the functions most affected by the pandemic are those in client-facing positions whose normal mode of business has been upended. However, anecdotally various firms have reported a willingness amongst clients to engage virtually to maintain some level of dialogue. What remains unclear is how these functions will operate in the ‘new normal’, particularly in a fractured geography such as Asia-Pacific and with managers reporting a high likelihood of increased restrictions on travel. On the hiring front, activity remains low and figures are comparable to Q1 across wholesale and institutional roles.

INSTITUTIONAL

SELECT PEOPLE MOVES:

Aberdeen Standard Investments has appointed Vishal Sharma as Sydney-based Director for Australia and New Zealand. Vishal was previously an Investment Consultant at the manager research and selection firm Bfinance.

Manulife Asset Management’s Head of North Asia ex-Japan Institutional Business, James Chen, is set to leave his current role. He will remain a Director on the board of Manulife IM Taiwan and the based JV.

M&G Investments has hired Jaclyn Lim as Head of Institutional Sales for Asia ex- Japan. She will be based in Singapore and joins from PIMCO.

Amundi’s Vanessa Wang has relocated to New York to become Head of Institutional Sales, North America. She was previously based in Hong Kong as Head of Institutional Sales, Asia-Pacific. Her responsibilities will be assumed by Sally Choo who becomes Head of Institutional Sales, North Asia.

Robeco has appointed Brian Kim as their Head of Business Development for Korea. Brian was most recently with BNP Paribas Asset Management based in Hong Kong.

Western Asset Management has hired John In-Geun Kim as a Client Service Executive. He will be based in Singapore and was previously with BlackRock.

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ASIA ASSET MANAGEMENT – Q2 2020 WHOLESALE

SELECT PEOPLE MOVES:

BNP Paribas Asset Management hired Benjamin Yuen into their wholesale distribution team in Hong Kong. He joins from Manulife Investment Management.

T. Rowe Price has hired Raymond Chan as a Client Director in their Greater intermediary business. He was previously with Fidelity International and will be based in Hong Kong.

BMO GAM’s Adrian Chan has left the firm and joins Citi Private . He was previously a Vice President in the intermediary sales team.

Fidelity International has hired Patrick Tam as part of the Hong Kong intermediary business. He joins from Legg Mason.

PIMCO has appointed Marcio Bogoricin as the new Head of Wealth Management in Asia. Based in Singapore, he was most recently the firm’s Head of business in Hong Kong and Singapore.

RELATED HIRES

Hong Kong-based Raffles Family Office (RFO) has appointed Simon Lints to the newly created role of Strategic Advisor. Simon was previously ’ Singapore CEO for wealth management.

J.P. Morgan Asset Management has appointed Rory Caines as an ETF specialist in Hong Kong. He joins from BlackRocks’ iShares business where he was a Vice President.

AllianceBernstein has hired Jeromy Huang in Hong Kong as a Product Specialist. He joins from Lombard Odier.

Robeco has hired Denis Resovac as the Head of Strategy for Asia- Pacific. He was previously with DWS Investments and will be based in Hong Kong.

Robeco has hired Rupeng Chen as a Director of Client Portfolio Management for Quant Strategies from Schroders. She will be based in Sydney.

Amundi has hired Heidi Cai as Head of ETF, Indexing & Smart for North Asia. She joins from SSgA and will be based in Hong Kong.

Manulife Investment Management has promoted Eric Nietsch based in Singapore to Head of ESG for Asia. He was previously a Director for ESG Research & Integration with the firm.

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ASIA ASSET MANAGEMENT – Q2 2020

SELECTED LEADERSHIP MOVES

CLSA has named Charles (Xiaodong) Lin as Vice Chairman. Charles was previously Vanguard’s CEO for Asia and he will be based in Hong Kong.

Schroders has appointed Lily Choh to a newly created position as Deputy Chief Executive Officer for Schroders Singapore, on top of her existing roles as Head of Institutional for Asia-Pacific and Head of Distribution for Singapore, Malaysia, and Thailand.

J.P. Morgan Asset Management has appointed the firm’s Equity Specialist Sherene Ban as its Head of Singapore and Southeast Asia. She will be based in Singapore in her new role.

Value Partners has appointed Patricia Cheung as its sole Chief Operating Officer based in Hong Kong. Patricia was most recently the firm’s co-Chief Operating Officer alongside Roger Hepper, who retired in April. Additionally, the firm has moved Icy Wong into a dual role as Chief Financial Officer and Chief Administrative Officer.

Prudential Corp Asia has named Robin Spencer as Chief Executive Officer of its Thailand unit. Robin joined the firm in 2018 as Chief Operating Officer.

Matthews Asia’s Lindsay Wright previously Head of Asia and Global COO has left the business.

BNY Mellon has appointed Hyon Joo Park as Country Executive for Korea and she will be based in Seoul.

Eurizon Capital has hired Ken Chuen as Chief Operating Officer for Asia based in Hong Kong. Ken was previously the COO with Wolver Hill Asset Management.

AMP Capital has promoted Boe Pahari, its Global Head of Infrastructure Equity to Chief Executive to replace Adam Tindall, who is retiring.

HeungKong Financial Group, a Hong Kong-based firm has hired David Quah, a former Managing Director at Value Partners, as Managing Director for external asset management.

BlackRock’s former Asia-Pacific Chairman of the Alternative’s division, Oisin Crawley has exited the business.

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ASIA ASSET MANAGEMENT – Q2 2020 CHINA

Market activity in China has continued to pick up throughout the past quarter against the backdrop of some obvious uncertainties. The worst of the pandemic is believed to have passed with new infections brought under control and a positive finish to the quarter for the domestic markets. However, the outlook remains mixed due to other macro factors such as the souring relationship with the US, or the fallout from the implementation of the national security law in Hong Kong.

Despite the risks, the long-term appeal of China appears undiminished and Chinese regulators have taken further measures in an effort to relax the restrictions for foreign investors, such as the removal of foreign shareholding limits in securities and fund investment firms and the announcement to lift quota limits in the QFII and RQFII schemes. Q2 has seen various international fund managers continue to grow their footprint in China through different channels including; acquiring shares of joint ventures, applying for licenses, and gaining PFM and QDLP licenses. Applications for WFOE approval continue and hiring activity has picked up from Q1.

GENERAL NEWS:

Chinese regulators have announced the decision to abolish the quota restriction of the two inbound systems - QFII and RQFII.

China has lifted foreign ownership limitations in securities and fund management firms.

BlackRock, Neuberger Berman, and Fidelity International have applied for wholly- owned mutual fund licenses in China.

J.P. Morgan Asset Management has reached a commercial agreement with its joint venture partner International Trust to acquire 100% ownership of their mainland venture China International Fund Management.

Fitch Ratings wholly-owned subsidiary in Beijing, Fitch (China) Bohua Credit Ratings, has been granted a license to rate bonds of domestic companies.

William O’Neil Investment Management has received a private fund management (PFM) license in China.

UBP’s WFOE, UBP Overseas Investment Management (Shanghai) has received approval for a QDLP license from AMAC. Franklin Templeton China has also received the same licence.

Hong Kong-based AIA Group has received regulatory approval to set up a wholly- owned unit in China, the first international company to make the move since

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ASIA ASSET MANAGEMENT – Q2 2020 Beijing eliminated foreign ownership limits in Chinese life insurers earlier this year.

NNIP and have teamed up to launch an ESG Equity strategy targeting both institutional and wholesale clients. It is currently available in Hong Kong and plans to launch in Singapore.

SELECT PEOPLE MOVES:

China Huarong Asset Management has appointed Xu Yongli as its new Vice President. Xu joins from China Orient Asset Management, where he most recently held the position of Vice President.

Robeco’s former Head of China, Mitchelle Zhou, has moved on from the business.

Citic has hired Titus Wu as Equities Portfolio Manager. He joins from Barings in Hong Kong.

Fullerton Fund Management has appointed James Zhang as General Manager for its Shanghai-based WFOE. James joins from China International Fund Management.

Kevin Ding, a former Manulife Investment Management employee re-joined the group from KPMG as Managing Director for China wealth and asset management business. Kevin will be based in Shanghai in the new role.

Neuberger Berman has hired Jingyi Li as an Investment Analyst for China Equities. Jingyi will be based in HK and she joins from Haitong International.

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ASIA ASSET MANAGEMENT – Q2 2020

INVESTMENT & PRODUCT

Hiring into Investment and Product roles has increased compared to Q1, although this is likely a ‘seasonal’ effect of the hires typically completed at the beginning of the year and the lag time before the individual onboards. Activity has been across both traditional and alternative asset classes, particularly in Equities, Private Credit and Real Estate, including some noteworthy senior level hires and instances where firms have set up new teams in the region.

EQUITIES

SELECT PEOPLE MOVES:

Franklin Templeton Investments has hired Bill Liu as an Executive Director, Senior Investment Analyst covering Commerce, and Internet sectors. Previously, he was a Research Analyst covering China Internet with Goldman Sachs. Bill will be based in Hong Kong.

M&G Investments has hired Jamie Zhou as an Investment Analyst. Jamie was previously with BosValen Asset Management and will be based in Hong Kong.

MAN GLG has hired Andrew Swann as Head of Asian Equities. He will relocate from Hong Kong to Australia and joins from BlackRock.

Fidelity International’s Ned Salter will relocate to Hong Kong from London as Head of Equities for Global Research and Asia ex-Japan.

Eurizon has hired Cheng Zeng as an Investment Analyst. He will be based in Hong Kong and joins from Swiss Asia.

HSBC Global Asset Management has hired Caroline Yu Maurer from BNP Paribas Asset Management to take up the role of Head of China and Hong Kong Equities. She will be based in Hong Kong.

United Managers has hired former APS Asset Management CIO Hiromitsu Kawakita as a Senior Portfolio Manager based in Tokyo.

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ASIA ASSET MANAGEMENT – Q2 2020

FIXED INCOME

SELECT PEOPLE MOVES:

Fidelity International’s Head of Asian , Bryan Collins has decided to step down from his position.

Value Partners has hired Conor Yuan as a Portfolio Manager for Credit and Fixed Income Investments. He joins from UBS and will be based in Hong Kong.

NN Investment Partners has hired Marcin Adamczyk as Head of Emerging Market Debt. He will be based in Hague. He was most recently Chief Executive of TFI PZU, a Polish Investment firm.

MULTI-ASSET

SELECT PEOPLE MOVES

Fidelity International has relocated Henk-Jan Rikkerink to Hong Kong from London to become Global Head of Solutions and Multi-Asset. He was previously Head of Equities for Global Research.

PRIVATE MARKETS AND FUNDS

UPDATES

Hong Kong logistics property investment firm ESR Cayman has completed its previously announced US$1 billion three-way joint venture that will focus on investing in South Korea’s industrial and logistics sectors. Its partners are the Canada Pension Plan Investment Board (CPPIB) and Dutch pension manager APG Asset Management.

Allianz Real Estate, the Property investment arm of German insurer , is preparing to open branches in China and Japan as part of its major expansion drive in Asia. Fulcrum Asset Management, a UK based asset manager, has partnered with Sumitomo Mitsui Trust

Bank to launch a Real Assets solution business. This will provide Japanese client access to liquid and illiquid Real Asset investments and be managed by Fulcrum’s alternatives team headed by Matthew Roberts.

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ASIA ASSET MANAGEMENT – Q2 2020

SELECT PEOPLE MOVES:

Marshall Wace has hired Junliang Zhu from Hillhouse Capital in Hong Kong as an Investment analyst.

Barings has appointed John Ratcliffe to the newly created role of Head of Asia-Pacific Real Estate, based in Sydney. He was most recently with Challenger Financial Services Group.

Tikehau Capital, a French Alternatives Investment Manager, has appointed Neil Parekh as Head of Asia, Australia, and New Zealand. He joins from the National Australia Bank, where he was the General Manager for Asia and he will be based in Singapore.

Adamas Asset Management announced the appointment of Brock Silvers as its new CIO based in Hong Kong. The executive first joined the company in August 2019 as a Managing Director in charge of Global Marketing and Investor Relations.

ADM Capital has appointed Neil Harvey as its new Executive Chairman for Asia-Pacific Private Credit. He was previously with and will be based in Hong Kong.

Aberdeen Standard Investment’s Head of Asia-Pacific Real Estate, Kang Puay-Ju has left the firm. He was previously based in Singapore.

Balyasny has hired Manik Lather as a Portfolio Manager. He joins from LMR Partners. He will be based in Hong Kong.

CDIB Capital, a Taiwan headquartered firm, has hired Tor Trivers from Carlyle to set up a Structured Credit team in Hong Kong. He is joined by Chen June-Yub and Sim Kyu-Jung also from Carlyle.

Savills Investment Management has hired Greg Lapham in Hong Kong to work on investments across Asia-Pacific. He joins from BlackRock and was Head of Real Estate Investments in Asia-Pacific.

HarbourVest Partners has hired Nicole Roddy in their Investor Relations team in Hong Kong. She was previously with Probitas Partners.

Schonfeld Strategic Advisors has hired Joon Soo as an Investment Analyst based in Hong Kong. Previously he was with LiZen Asset Management as Head of Trading.

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ASIA ASSET MANAGEMENT – Q2 2020

HONG KONG

Contact Us

Nick Aylwin-Foster Director E: [email protected] T: +852 3008 0508

George Windsor Senior Associate E: [email protected] T: +852 3008 0580

Emma Quan Associate E: [email protected] T: +852 3008 0621

Suite 2003 Tower One, Lippo Centre, 89 Queensway, Hong Kong T. +852 2110 1234 W. www.sheffieldhaworth.com 13