Spy’s domestic commander-in-chief has got into the spirit of Chinese New Year. The annual spring clean, or 春季大掃除, is fully under way in our Kowloon household. Spy’s collection of craft-beer branded glasses from around the world is under severe threat of exile. Apparently these hard fought for trophies are nothing more than a “tacky reminder of too much indulgence and look ugly”. If market gossip it anything to go by, this Chinese New Year is going to see more than its fair share of spring cleaning at fund distributors. The equity rally that just won’t stop is prompting many wealth managers to start emphasising equity strategies with far greater conviction. For the year of the Earth Dog, Spy is expecting equity, especially thematic funds, to get top billing while fixed income takes a well-deserved breather.
The musical chairs game that runs between New Year and Chinese New Year is in full swing. Spy has heard of numerous changes in our industry this week.
News reaches Spy that Marisca Wong, who has been handling fund selection for Aviva’s Navigator fund platform in Singapore, is stepping down from her role at the end of the month. Spy has yet to establish who is replacing Marisca or where she is off to. Navigator competes with iFast, providing a platform for independent financial advisers to invest client money directly in funds, rather than the more traditional route of going through an insurance wrapper. Navigator’s platform is only available via an IFA and not directly to the consumer.
Spy understands that Christian Leger, who has been handling wholesale distribution for Capital Group in Hong Kong, plans an eventual return to his native Switzerland, possibly this summer. There is no news yet on who would take over from Christian in that market. Capital has been recruiting for distribution specialists in Singapore, although no announcements have been made publically yet. Capital has had success in the last 12 months with its Japan Equity Fund, up a healthy 36%. The group’s New Perspective Fund, essentially a blue-chip global equity strategy, with $76bn in AUM, has also had a strong run, up 33%.
Invesco in Hong Kong has added to its communications team with the hire of Jason Tse. Jason, was formally at M&G Investments doing a similar role. PR has never been more important for asset managers as the competition has increased in the last few years. If Spy’s email inbox is anything to go by, the daily amount of industry press releases is voluminous…but not always that eye catching. However, Invesco has something to trumpet. It blew the lights out the last year with its China-focused PRC Equity Fund, which returned 66%.
Is Hong Kong the equivalent of Hotel California? You can check out any time, but never leave? News reaches Spy that Andrea Holroyd of Peak Capital, who was based in Hong Kong for many years but has been living back in France for the last five, is returning to the Fragrant Harbour. Spy understands that Andrea will be representing Swiss boutique, Quaero Capital and their range of funds for Peak, as Mike Smith is moving back to the UK. Quaero’s European Smaller Companies Fund was up 31% in 2017.
It has come to Spy’s attention that Sarah Lombardi, formally a portfolio manager at wealth boutique Crossinvest in Singapore, has resurfaced in Malaysia. Spy notes she has joined another specialist asset and wealth group, BTBR Trading, which began life in 2015. BTBR is focused on the HNW space, according to its website.
Finally, an Asian alumnus has just turned up in a prominent role in the UK. Mike Gibb, who was in charge of sales for Legg Mason’s Martin Currie brand in Asia, has taken on the role of head of stewardship and sustainable investing at Fidelity. Apparently Fidelity is adjusting its active range of funds to take ESG principals into account. Spy understands that Mike, who earned an MBA with an ESG focus in Edinburgh, is helping to put the ESG principals in place, among other duties.
It is the awards season and Fund Selector Asia is not immune to handing out gongs for excellence in asset management itself. It did occur to Spy, however, that it might be time to introduce an award for most distinctive asset management logo. Looking at four of the winners in Singapore, Spy pondered on the fact that ordinary consumers, outside the asset management bubble, must think “they are all the same”.
Contrast the AM logos with leading tech firms. Spy is pretty sure he knows which ones stand out.
Stanford University is putting the role of human versus algorithmic asset manager and fund selection under the spotlight. Spy came across a research piece being conducted by the leading school. Stanford describes the research in the following manner:
“You are invited to participate in a research study on automation in investment decision-making. We want to understand how individuals fare at choosing asset managers when pitted against an algorithm– one that can use existing decision-making frameworks in the context of real-world investment memos and managers to make decisions. You will see some sample fund manager one-pagers and you will be asked to make predictions about their success.” Spy awaits the results with anticipation.
Spy’s band of roving photographers have been overwhelmed with amount of new advertising in Hong Kong by the asset management community this week.
First up, Neuberger Berman is outside Standard Chartered’s headquarters, reminding the bank of its Strategic Income Fund:
Pimco is out with a new branding campaign in Central:
Value Partners has been spotted in the MTR with a new campaign touting its various fund awards:
Your Spy notes that VP can add another award to the list — yesterday it was crowned a Gold winner in the High Yield category of the FSA Fund Awards for its Greater China High Yield Income Fund.
Until next week…
