Spy tried to go to several old haunts around Soho in Hong Kong this week and all of them had simply disappeared. Reliable, friendly, modestly priced bars that seemed like solid businesses are booted out for shiny, committee-designed “concept bars” with beer as bland as their anodyne interiors. One RM told me he thought Central’s soul was actually dying as the great rent-induced exodus to Quarry Bay gathers pace. Spy may be an old indulgent curmudgeon, but the sheer pace of change made him a tad sad. As Ferris Bueller may have put it on his day off, “Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it.”
Spy has heard of so many people moving around this week, he was under the impression that he had arrived at a fun fair.
Brad McCarthy, who was the Singapore-based regional head of Entrust Permal, a Legg Mason alternatives affiliate, has stepped down from his role. Spy understands that Brad will be staying in the industry and is joining a new firm, to be announced in mid-May. There is no news of his replacement. Entrust Permal is one of the world’s largest hedge fund and alternatives investors.
News reaches Spy that Aberdeen Standard has hired Hazel Low to join their marketing team in Singapore. Previously Hazel worked for Fidelity International where ASI’s relatively new APAC marketing head David Mitchell was in charge of marketing. Aberdeen Standard is having a good year in the Japanese equities space; its smaller companies fund is up 30% over the last year. Kampai!
In a business development role change, Spy has learned that Diya Lowe, who was a senior vice president of wholesale and institutional sales at Lazard Asset Management in Singapore, has stepped down from her role. Spy understands she is staying in Singapore and will be moving to a new firm in May. No news of her replacement yet. Lazard’s Global Active Developing Markets Fund is up 38% over the last year.
A big change is under way at Credit Suisse discretionary. Warren Hastings, the discretionary head, is relocating from Singapore to Zurich to take up a new role as European head of DPM at CS. Warren previously held roles at Schroders and Standard Chartered. Spy understands that Jaqueline Khoo, based in Hong Kong, is taking over as head of DPM in the region. Credit Suisse, like many other private banks, has seen its discretionary arm grow at a healthy pace in the last few years as Asia adopts discretionary services.
St James’s Place Wealth Management in Hong Kong has pinched UBP’s former head of discretionary portfolio management Asia, Sally Wright. Sally has looked after private clients for Coutts for over 20 years and brings significant investment management experience to SJP Asia. In joining the SJP, Sally will focus on providing wealth management solutions to high net worth individuals and families in Hong Kong.
Spy’s colleagues have been talking about discretionary management this week at forums in Hong Kong and Singapore. Enthusiasm for the sector is growing. One theory doing the rounds is that the long-awaited generational shift of money is beginning to materialise. However, one senior discretionary head said it was far simpler: regulation. Regulation in Asia, similar to Europe, is driving the industry forward. One man’s meat is another man’s poison?
What is it with the world of finance that it seems to love the Hydra, wonders Spy?. For those unfamiliar with Greek mythology, the Hydra of the Lerna was the multi-headed guardian of the netherworld. This week Spy noticed another firm that is not content with one “head of” and needs two. Point72 Asset Management has appointed Harry Schwefel as co-CIO alongside founder Steve Cohen. Of course, Janus Henderson has two CEOs, Dick Weil and Andrew Formica, and so does Aberdeen Standard with Martyn Gilbert and Keith Skeoch. Not so long ago Deutsche Bank had Anju Jain and Jürgen Fitschen as co-CEOs. That particular adventure did not work out so well, recalls Spy. If Spy hunts around Asia, he is able to find numerous “heads of” in similar roles in the same business across the finance world. Is this the market’s version of “all must have prizes”?
There is not an asset manager that Spy encounters of late that is not adopting ESG principles or ideas into its investment processes in some form or another. The starting point for many is getting signed up to the UN’s Principles of Responsible Investing (UN PRI) which literally hundreds of managers have done, including most of the world’s largest players. Some sceptically minded people may wonder how being an UN PRI signatory squares with some investments. One Asia-based asset manager pointed out to Spy’s colleagues this week that Rusal, listed here in Hong Kong, which has been in the news this week due to US sanctions on the company, looks a rather strange ESG investment. It is one of the world’s most egregious polluters, has a corporate governance record that looks a bit like a mobster’s rap sheet and yet its top 10 non-Russian shareholders are all UN PRI signatories. (For the record, at last check, they were Pictet AM, Vanguard, Schroders, JP Morgan AM, Candriam, Templeton, Wells Capital Management, Amundi and the Canada Pension Plan Investment Board.) Spy could find hundreds of other examples, but the main point is: What is window dressing with ESG and what is real?
The above notwithstanding, the ESG juggernaut rolls on. A senior executive at HSBC Private Bank was overheard this week explaining its rapid adoption of ESG principles across its discretionary portfolios. This was being driven internally and by clients, according to the well-placed source. Those sceptical that client demand is not behind this trend might wish to revise that view.
Spy’s photographers spotted some new advertising from Jupiter this week in Hong Kong. A giant billboard near the Mandarin Oriental is sporting Jupiter’s trademark orange colours.
Until next week…
