This may come as a surprise to many loyal readers, but Spy was not invited to the Chinese Communist Party’s gathering this week. Instead he was left to his own devices in Hong Kong, pondering China’s ambitious plans to become a global superpower within 30 years and make greater “contributions to mankind”. Spy has one humble suggestion to China’s esteemed leaders in their global quest to make a better contribution to mankind: for this new era, drop Moutai baijiu as the national drink and come up with something more palatable. Former global powers France and Britain, both now faded antiques, have at least left their marks by providing the world’s palates with superb wine and Champagne, and, single malt whisky and gin, respectively. Celebrating China’s new era and success will be so much more fun without a baijiu hangover the next morning.
News has reached Spy that David Mitchell, marketing head at Fidelity in Singapore is stepping down from the firm at the end of the month. Spy has no knowledge of where David is going to, although it is understood he is remaining in Singapore. David has held various sales and marketing roles within Fidelity across Asia and back in the United States. Ben Waterhouse remains in charge of wholesale distribution supported by Szu Yi Chin and Sabrina Gan. Fidelity’s range of European funds are having a particularly good year: Euro Stoxx 50, Italy and Nordic funds are all up more than 30% over the past 12 months.
In another recent move, Su Mien Seng, has moved from her role as senior fund analyst at Standard Chartered to BNP Paribas Wealth Management. Su Mien will be working with long time funds head, Agnes Sng. Meanwhile, Stan Chart has added to their funds team by hiring Arthur Wu from Morningstar.
Spy must be slipping up! The news had almost bypassed him that JP Morgan Private Bank has added to their fund selector team in Singapore by hiring Cynthia Lai. Cynthia joined the American private bank in August from Standard Chartered to take up the funds role vacated by Lina Lim who has taken a new role with JP Morgan PB. All change.
With the 5-year congress taking place in China this week, it came as no surprise to Spy that ICBC made some key announcements recently with a far more internationalist flavour. The giant Chinese bank has renamed its asset management arm from ICBC (Asia) Investment Management to ICBC Asset Management (Global). Whilst the change may be subtle, it fits in with the entire Chinese mood: China is here, China is important and China is spreading its influence across the world. The firm is targeting HK$100 billion of AUM by the end of the year and even more ambitious plans on a 3-year view. The business also announced it had signed cooperation agreements with Goldman Sachs Asset Management Asia and Blackrock. Watch this space.
Is Blackrock an asset manager, a tech company or both? With Blackrock the numbers are always astonishing but even Spy was surprised by the scale of the assets now sitting within the technology solutions division. Aladdin, the firm’s technology platform that enables third-party asset managers to manage their own businesses, now has more than $15trn within it. Blackrock’s shares have been on a tear all year and they are now within shouting distance of $500. Spy guesses if Facebook falters and the market needs a replacement, Blackrock could step in and we could have the more fun acronym: the BANGs….
Hugh Young, the veteran head of Aberdeen Asset Management, wrote a superb opinion piece to mark 20 years since the Asian Financial crisis in the UK’s Daily Telegraph newspaper. It is worth reading in full but this paragraph particularly stood out: “There is a sense that Asia need no longer look to the West for all the answers. Events such as the global financial crisis (GFC), the peculiar circumstances under which the UK voted to leave the European Union and the election of President Donald Trump in the US, have dented the developed world’s reputation for competence and reason.” Nailed it.
With markets hitting new highs almost daily, and the sense of well-being filtering across the world, Spy is spotting more and more signs that memories are short. Take for example this extraordinary claim recently by Doug Parker, CEO of American Airlines: “I don’t think we’re ever going to lose money again…We have an industry that’s going to be profitable in good and bad times.” Although individual airlines have done well, the industry reputedly, collectively, lost money the whole of the 20th century. This kind of thinking makes Spy feel distinctly queasy. Richard Branson once said, “If you want to be a millionaire, start with a billion dollars and launch a new airline.” Check your American large cap funds for exposure to American Airlines, folks – there may be turbulence ahead.
Asset managers like to give their clients interesting ways to understand the value, rather than the price, of something. This week Spy spotted a chart from Luxembourg-based investment manager Incrementum. The firm shows the changing price of beer relative to gold over time. It works out the average number of standard litre beers at the Munich Oktoberfest taken to buy an ounce of gold. Spy would love to see the numbers for craft beer sold in Hong Kong, it might be a very different picture!
Does Lloyd Blankfein, Goldman Sach’s CEO, enjoy a bit of trolling? With Britain frantically and chaotically trying to negotiate a post-Brexit deal with the EU, Blankfein seemed to stick his oar in to the Brits this week. He wrote on Twitter yesterday: Just left Frankfurt. Great meetings, great weather, really enjoyed it. Good, because Ill be spending a lot more time there.
In Hong Kong, Spy’s photographers have spotted China AMC popping Champagne corks while promoting its CSI 300 ETF:
Schroders is promoting their multi-asset capability suggesting that you can coast along. With China’s infamous traffic jam problems, Spy does wonder if this is the best metaphor?
In Singapore, a new Franklin Templeton ad was spotted underneath Marina Bay Financial Centre. The fight back for active is in full flow.
Until next week…
