This year, the emergence of structured products with actively managed underliers in Asia was especially pronounced within the external asset management (EAM) segment, where demand for efficient implementation and flexibility drove flows. The specific product in question—actively managed certificates (AMCs)—provided a viable alternative to launching new funds or mandates.
“AMCs represent cost-efficient alternative solutions to private labelled funds,” says Alessandro Ginestra, director, structured solutions at Leonteq. “From the EAM segment, we saw a strong increase in requests for AMCs comprising mainly bonds or equities but also more complex structures containing purely structured products.”
AMC notes aside, the EAM specialist observed broader structured products volume growth in 2017, not only due to stronger markets but by obtaining a greater market share in the segment through proactive life cycle management, supported by a robust technology platform.
Overall, the Swiss structured product provider registered a 33% increase in revenue growth in 1H17 while also launching a new office in Asia.
“Leonteq has repeatedly confirmed its commitment to Asia, which is also underscored by the ongoing efforts to open a new office in Tokyo in the course of next year,” Ginestra adds. “We see a clear trend of newly formed independent asset managers and family offices in the region and expect to grow our client base in this dynamic environment.”
What’s more, Leonteq continues to make new investments to enhance its business including the ongoing onboarding of a new platform partner to offer local credit risk in Asia. The firm also continues to expand its structuring team in Hong Kong on the back of an increase in demand and the rise in the complexity of client needs.
By one estimate, EAMs in Asia could collectively account for nearly US$60 billion in AUM by 2020; and if this year’s awards poll is any indication, Leonteq, 2017’s Best Provider of Structured Products to External Asset Managers, is well-positioned to harness these tailwinds.