In 2018, Asian equities faced significant headwinds driven by risks in trade, FX, and the ongoing China slowdown. By the end of the third quarter, MSCI Asia was down nearly 3%, in stark contrast to the storied rally of 2017 which delivered a spectacular 33.4%.

Structured product investors riding on strong beta and growth stocks found themselves having to rapidly reposition amid greater volatility and return dispersion. Providers that were able to swiftly recalibrate with relevant structures and more defensive underliers were able to capture the structured products opportunity in 2018.

BNP Paribas demonstrated its ability to deliver relevant solutions regardless of market conditions, nimbly transitioning its strategy with emphasis on catering to a more defensive investor base.

In 2018, BNP Paribas was able to offer a range of solutions to fulfil such needs, including notes linked to Stock Connect-related thematic baskets or HSCEI dividends and Talisman on Asian stocks. Mindful of significant and recently growing cash allocations — especially owing to profit-taking — BNP Paribas also provided cash alternatives through, for example, repo opportunities. Leveraging from a strong onshore platform in Japan, it was also able to deliver attractive solutions linked to one of the stronger equity market performers in the region.

Regarding content, BNP Paribas leveraged its fundamental and derivatives research capabilities providing, for instance, key insights on longer-term secular trends in China such as the internationalisation of its capital markets, the ‘premiumisation’ of consumption, and a transition to a low carbon economy.

The bank also persistently tweaks its digital capabilities in light of wealth managers’ growing focus on increasingly automated solutions for flow-structured products. The two key priorities the bank engaged this year were widening of the scope of payoffs and underliers to support investor needs as well as further improving turnaround time for greater efficiency.

“2018 was a rocky year for Asian equity markets with trade frictions, currency contagion, and concerns about an economic slowdown in China,” said Gloria Yu, head of equity derivatives flow, WM&FO, global markets APAC at BNP Paribas. “Through this period of market uncertainty, we have remained close to our clients, meeting their specific needs and providing ideas that are relevant as markets evolve.”

Swiftly adapting to new needs for payoff structures and underliers, a consistent focus on delivering content, and persistent adjustment of digital capabilities to enhance client experience led Asia’s structured product gatekeepers to select BNP Paribas as 2018’s Best Structured Product Provider – Asian Equities.