FT BUSINESS OF ASSET MANAGEMENT EXECUTING INVESTOR STRATEGIES IN A FAST-CHANGING MARKETPLACE 21 June 2012 • Four Seasons Hotel Hong Kong Platinum Sponsors Gold Sponsors ZBLACHC20248DGG_HK_part2_Event_210x297_E2.indd 1 18/06/2012 3:10 PM WELCOME Dear Guest, On behalf of the Financial Times and our partners FTfm and Ignites Asia, I am delighted to welcome you to the inaugural FT Business of Asset Management summit. With the global economy facing a period of extreme uncertainty, much attention is being focused on the flow of money in and out of Asia. The region’s emerging and developed markets are seeing slowing growth, but assets under management held by large institutional investors are continuing to expand, and the newly and increasingly wealthy middle class are giving renewed life to the retail sector. This combination provides enormous strategic opportunities for asset management firms, particularly in light of the crisis in Europe and moribund growth in other Western markets. However, many challenges have to be overcome for the region’s full potential to be realised. Investors’ requirements in their search for outperformance are becoming more complex in the current volatile environment, while managers must also prepare for major regulatory changes, particularly in big emerging markets like China, that will determine not only the pace of their expansion but also the solutions they develop to optimise returns. We are fortunate to be able to welcome CEOs and CIOs from some of the world’s top asset management companies, as well as leading institutional investors and regulators, to discuss in detail the major factors affecting this rapidly evolving sector and how participants are positioning themselves for future opportunity and risk at a time of momentous change. I very much hope you enjoy what promises to be a memorable day. Yours sincerely, David Pilling Asia Editor Financial Times FT BUSINESS OF ASSET MANAGEMENT 3 ZBLACHC20248DGG_HK_part2_Event_210x297_E2.indd 1 18/06/2012 3:10 PM Your most valuable GEM? Take advantage of a new opportunity to invest in the Asian fixed income market, and you’ll not only open up a new source of yield, but also tap into the long-term capital appreciation potential of the Asian bonds. Naturally, your investment will be managed by our immensely experienced, award- winning team – a leader in Asian fixed income and emerging markets with over USD29.9 billion in Asian fixed income assets under management*. Visit www.assetmanagement.hsbc.com/hk *Source: HSBC Global Asset Management, data as at 31 March 2012. Investment involves risk and past performance is not indicative of future performance. The document is prepared for general information purposes only. All views expressed cannot be construed as an offer or recommendation by HSBC Global Asset Management (Hong Kong) Limited (“AMHK”). AMHK and HSBC Group shall not be held liable for damages arising out of any person’s reliance upon this information. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. Issued by HSBC Global Asset Management (HK) Limited. 22439/0612 FP12-0520 22439 AMHK Asian Fixed income.indd 1 1/6/12 14:54:31 PROGRAMME 8:00 am Breakfast and Registration 9:00 am Co-Chair’s Opening Remarks Pauline Skypala, Editor, FTfm 9:10 am Keynote: The Outlook for Asia’s Capital Markets A leading strategist gives the outlook for Asia, exploring recent and potential trends and policy moves across the region, and how these could impact capital markets and money flows, so setting the context for the discussions to follow. Mark Mobius, Executive Chairman, Templeton Emerging Markets Group 9:40 am Keynote: View From The Top (Part One) The CEO of a leading asset management company discusses the state of the industry with an FT journalist. Mark McCombe, Chairman, Asia Pacific, BlackRock Interviewed by Henny Sender, Chief International Finance Correspondent, Financial Times 10:10 am Panel Discussion: The Asset Management Industry Today A broad-ranging discussion on the state of the asset management industry, looking at the regulatory reforms that followed the financial crisis and the other major changes – including the increasing flow of institutional investor capital into emerging markets – that are transforming the industry and will affect its development in Asia. Curtis Arledge, CEO, Investment Management, and Vice Chairman, BNY Mellon Kim Hong, Managing Director and Head of Asia Pacific, PIMCO Graham Mason, Chief Executive, Eastspring Investments Philippe Uzan, Chief Investment Officer, Edmond de Rothschild Asset Management Charles Wang, CEO, E Fund Management (Hong Kong) Moderator: Pauline Skypala, Editor, FTfm 11:10 am Networking Break 11:30 am Keynote: View From The Top (Part Two) A leading investor shares his insights on Asia with an FT journalist. Gregory Curl, President, Temasek Holdings Interviewed by Henny Sender, Chief International Finance Correspondent, Financial Times 12:00 noon Keynote: View From The Top (Part Three) A leading asset manager discusses the changing investment landscape. Bill Maldonado, Chief Investment Officer, Asia Pacific, HSBC Global Asset Management Interviewed by Rita Raagas De Ramos, Managing Editor, Ignites Asia 12:30 pm Panel Discussion: What Institutional Investors Want and Need – a discussion on their current strategies and new ones they are exploring The assets under management held by sovereign wealth funds, pension funds and other large financial institutions, such as insurance firms, are continuing to grow rapidly, particularly in Asia. Mandates differ, with some funds taking a relatively conservative approach and investing mainly in fixed income and some equities, while others have diversified into other asset classes such as real estate and infrastructure. What sources of return should investors be looking at, and what are the associated risks? How should they be dividing portfolios between low-cost market returns (or beta) from passive managers, and more expensive active managers that offer the potential of above market returns (or alpha)? Where are the key opportunities in Asia today? Where are the roadblocks? How important is the quality of the service provider and does it pay to diversify managers as much as possible? Peter Chen, Senior Principal, Canada Pension Plan Investment Board Mark Delaney, Chief Investment Officer and Deputy CEO, AustralianSuper Nicholas Hadow, Director, Aberdeen Asset Management Asia Joanne Segars, Chief Executive, National Association of Pension Funds, UK Abhi Shroff, Principal, Greenwich Associates Moderator: Pauline Skypala, Editor, FTfm 1:30 pm Networking Lunch 2:30 pm Keynote: The Next Generation of Alternative Investing How different approaches are evolving as more sophisticated investors enter the market. Matthew Botein, Head, BlackRock Alternative Investors (BAI) 3:00 pm Panel Discussion: China – The next wave China is now the world’s second largest economy and could in the not so distant future overtake the US as the largest. It holds substantial influence in the global economy and financial system. Yet its currency is still not fully convertible and its asset management industry is substantially under-developed. How will the QFII, QDII and RQFII programmes evolve? How should investors and asset management firms position themselves for the opening of what could become the world’s largest market for investment funds? What is the outlook for the Chinese economy, and where are the opportunities and risks that will emerge for institutional investors focused on the mainland? Peter Alexander, Principal, Z-Ben Advisors Paul Chan, Chief Investment Officer, Asia ex-Japan, Invesco Steve Chiu, Managing Director, Bosera Asset Management Christina Choi, Director of Investment Products, Securities and Futures Commission, Hong Kong Jing Ulrich, Managing Director and Chairman of Global Markets, China, JP Morgan Moderator: Rita Raagas De Ramos, Managing Editor, Ignites Asia 4:00 pm Networking Break 4:20 pm Keynote: View From The Top (Part Four) A leading hedge fund manager discusses the outlook for alternative asset classes. Wesley Edens, Co-Founder, Principal and Co-Chairman, Fortress Investment Group Interviewed by Henny Sender, Chief International Finance Correspondent, Financial Times 4:50 pm Panel Discussion: Managing Institutional Portfolios – The role of alternative investments in the search for outperformance Market returns may prove too low in a low-growth world to keep assets in line with liabilities, so investors are looking to alternative asset classes for uncorrelated sources of return with the potential to outperform. Strategies include distressed debt, managed futures, catastrophe bonds, credit arbitrage and direct lending. How do these fit into traditional portfolios? What are the risks and rewards and how are managers executing these new mandates? What are the most popular alternative assets for institutions in Asia? Oliver Bolitho, Head, Asia Pacific, Goldman Sachs Asset Management Grant Kelley, Co-head of Asia Pacific, Apollo Global Management Stephen Roberts, Head of Investments, Asia Pacific, Mercer Investments Joe Zhou, Chief Investment Officer and Executive Director, Ortus Capital Management Moderator: Henny Sender, Chief International Finance Correspondent, Financial Times 5:50 pm Co-Chair’s Closing Remarks Rita Raagas De Ramos, Managing Editor, Ignites Asia 6:00 pm Cocktail Party, sponsored by Aberdeen Asset Management Be entertained by a jazz quartet while you sip a cocktail whipped