Discretionary Portfolio Management Leaders Conversation, Hong Kong 2017

Date:
1 June, 2017
Time:
8:30am – 1:10pm followed by luncheon
Venue:
Mandarin Oriental, Hong Kong

2017 Photos

 

Overview

For the second year, Asian Private Banker brought together senior Discretionary Portfolio Managers from the leading private banks in the region for a leader’s morning to examine how the DPM space is evolving, what it means to Asian clients, and how growing rates of DPM penetration are affecting the industry. The morning consisted of four 40-minute revolving workshops, held in an intimate, off-the record, and facilitated environment.

The workshops were followed by a Leaders Conversation panel with the heads of DPM from the leading private banks in the region – where unique insights were shared based on observations of data collected from all participants.

Agenda

8:30am – 9:00am Registration and Coffee
9:00am – 9:05am Opening Comments
9:05am – 9:45am Leaders Conversation Panel 1 | Risk-taking through DPM

The current environment appears ripe for risk-taking, especially as equity markets have rallied on the expectation of reflation and Trump’s election promises. In Asia, however, equity appetite remains muted due to valuation concerns, fattened tail risks and raw memories of market turbulence. A number of managed solutions have emerged to help enhance returns without compromising income or clients’ low tolerance for drawdowns.

How are discretionary managers and their offerings helping clients navigate tough markets and achieve objectives? We discuss Asian HNW investor appetite and portfolio solutions with leading regional heads of DPM.

Moderator:
Richard Otsuki, Deputy Editor, Head of IPS Coverage, Asian Private Banker

Conversation catalysts:
Jacky Tang, Head of Portfolio Management Group; Co-Head of Investment Strategy Group, Goldman Sachs
Yves Bogni, Head Programme Management Office APAC, UBS
Yvonne Leung, Executive Director and Senior Portfolio Specialist, J.P. Morgan Private Bank

Breakout Roundtable Sessions
(Breakout sessions will be held concurrently in separate rooms.)
9:50am – 10:30am Breakout Session 1
10:30am – 11:10am Breakout Session 2
11:10am – 11:50am Breakout Session 3
11:50am – 12:30pm Breakout Session 4
12:30pm – 1:10pm Leaders Conversation Panel 2 | Encouraging private bankers in Asia to adopt DPM

Establishing and developing a discretionary management offering is not an overnight process, but rather one that requires deep planning, foresight and resource. Thus, though private banks are today cognisant of the fact that DPM will be a critical aspect of their business going forward, there is no set blueprint.

How should private banks go about assembling and calibrating their discretionary teams and infrastructure, given the institutional context, client needs and market conditions? How is the regulatory environment shaping banks’ approach to DPM, and what changes are in store? If RMs are not sufficiently equipped – or informed – to sell DPM, what steps can be taken? This panel will focus on the day-to-day struggle of setting up and operating a discretionary portfolio management offering at a private bank in Asia.

Moderator:
Richard Otsuki, Deputy Editor, Head of IPS Coverage, Asian Private Banker

Conversation catalysts:
Philippe Kretz, Founding Partner, Swiss China Capital
Sally Wright, Head of Discretionary Portfolio Management Asia, UBP
Tuan Huynh, Regional Head of Portfolio Management, APAC, Deutsche Bank

1:10pm – 2:00pm Networking Luncheon

 

Workshop Topics

ESG Integration: How can ESG factors add value to investments?
The past few years have seen a dramatic increase in the attention paid to Environmental, Social, and Governance (ESG) criteria in the investment process. Our industry has begun to integrate these ideas – to varying degrees – to its investment process. The adoption has been underpinned by a search for alpha and a desire to reduce uncompensated risks. AXA IM will use this session to review the numerous questions surrounding ESG investing today: Why integrate ESG into a portfolio? Why now? Is ESG just a passing trend? How should investors think about ESG integration? What about the perceived tradeoff between ESG goals and investment return? We aim to use our investment experience with ESG investing to guide and create an interactive and informative discussion.

Workshop host:
Patrick Kuhner, Client Portfolio Manager, Rosenberg Equities, AXA Investment Managers

Finding Quality Growth in China
Despite concerns around China’s economic slowdown, renminbi depreciation and the threat of trade protectionism, good investment opportunities prevail for bottom-up investors in China. As China continues to open up its capital markets, the number of companies that stock-pickers can select from has grown significantly. Where are the structural opportunities? How should investors identify companies with sustainable growth? This breakout session will give an analyst’s perspective on how stock selection is carried out in China and highlight a examples of quality growth companies.

Workshop host:
Vivian Tang, Head of Distribution, North Asia, First State Investments

Can structured credit be the next income solution?
At approximately USD7.9 trillion in market value, residential and commercial mortgage-backed securities (MBS) comprise over 20% of the US fixed-income universe. Yields remain attractive relative to Treasuries and other credit alternatives. Residential and commercial mortgage spreads have historically exhibited lower correlation with equity market returns. By adding significant yield and diversification against other asset classes, these markets offer investors a potentially attractive return profile. Expectations for further monetary tightening and Fed member comments on balance sheet normalization have brought the topic of Fed “taper” (i.e., a gradual end to reinvestments) front and center. What is the impact of the Fed “taper” on the MBS markets? Where are the opportunities in a rising rate environment? How has the sector evolved since the global financial crisis? These questions and more will be addressed in this session as Legg Mason seeks to outline the benefits of active management in structured products.

Workshop host:
Amanda Stitt, Investment Director – Product Specialist, Legg Mason Global Asset Management

Listed infrastructure – a powerful thematic shift, or a fleeting fad?
M&G will use the session to discuss the varying approaches to investing in globally Listed infrastructure. The conversation will explore how the market defines infrastructure, what are the diversification benefits of the asset classes, whether you should take an active or passive approach to accessing this trend, and whether this theme has long term investment credentials, or is just a passing buzzword. The session will be conducting in an interactive way with delegates encouraged to share their views and past experiences of investing in the sector.

Workshop host:
Kotaro Miyata, Investment Director, M&G Investments

5 ways to boost portfolio returns amidst a complex world

Achieving returns in today’s markets has become a more complex proposition than ever before. The lower-for-longer growth and more complicated political environment requires new thinking for asset allocation. Compared with the conservative 60% fixed income and 40% equity portfolio needed to target a 7% return ten years ago, today’s portfolio targeting the same return is much more complex, with higher standard deviation. How can investment managers re-shape their clients’ portfolios for the new investment reality?

This session will focus on five holistic elements that may help you reach investment objectives including factors, overlays and a new way to approach asset allocation.

Workshop host:
Thomas Poullaouec, Head of Strategy & Research, APAC, Investment Solutions Group, State Street Global Advisors

Partners

AXA Investment Managers First State Investments Legg Mason M&G State Street Global Advisors

 

Inquiries

For further information on the Discretionary Portfolio Management Leaders Conversation, koye.sun@asianprivatebanker.com