Discretionary Portfolio Management Leaders Conversation, Hong Kong 2018

Date:
12 April, 2018
Time:
8:30am – 12:00pm, followed by luncheon
Venue:
Island Shangri-la, Hong Kong

Overview

A closed door morning with heads of DPM from the leading private banks in Asia.

Event Photos

Agenda

8:30am – 9:00am Registration and Coffee
9:00am – 9:05am Opening Comments
9:05am – 9:45am Leaders Conversation Panel 1 | DPM Downside Protection in 2018

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

Conversation catalysts:
Daniel Chan, Managing Director, Head of Citi Investment Management, Asia, Citi Private Bank
Grizelda Lee, Head of Discretionary Portfolio Management, Asia, Indosuez Wealth Management
Paras Gupta, Head of Portfolio Management, UBP

  Breakout Roundtable Sessions
(Breakout sessions will be held concurrently in separate rooms.)
9:50am – 10:20am Breakout Session 1
10:20am – 10:50am Breakout Session 2
10:50am – 11:20am Breakout Session 3
11:20am – 12:00pm Leaders Conversation Panel 2 | Thematics in Discretionary Mandates

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

Conversation catalysts:
Harmen Overdijk, Founding Partner, Capital Company
Jacky Tang, Head of Portfolio Management Group; Co-Head of Investment Strategy Group, Goldman Sachs
Steven Fong, Head of Portfolio Solutions, HK, Credit Suisse

12:00pm – 1:00pm Networking Luncheon

Panel and Workshop Topic Details

Leaders Conversation Panel 1 | DPM Downside Protection in 2018

Unlike 2017, real inflationary pressures in the US and risk of a rate overshoot could shake markets this year, despite a robust global growth backdrop. The smooth and spirited equity rally could lose legs if earnings momentum slows from the diminishing effects of a US tax cut or a (slight) China slowdown. Bond spread tightness could reverse and test liquidity support. Although many in the market are calling for another ‘Goldilocks’ year, fewer are confident that the ride will be as smooth as it was in 2017. Especially in Asia, where wealth management clients have a penchant for leverage, market turbulence and faster-than-expected yield rises could prove costly for portfolios.

How are private banks positioning their discretionary mandates in 2018? Is there a renewed focus on increasing allocations to floating rate bonds due to the US inflation outlook? How are discretionary managers implementing this allocation (i.e. via direct, funds, ETFs, others)? How are mandates positioned to leverage from equity growth, all the while remaining mindful of potential downside and increased volatility? How are smart beta ETFs and liquid alternatives supporting diversification for protection?

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

Conversation catalysts:
Daniel Chan, Managing Director, Head of Citi Investment Management, Asia, Citi Private Bank
Grizelda Lee, Head of Discretionary Portfolio Management, Asia, Indosuez Wealth Management
Paras Gupta, Head of Portfolio Management, UBP

Leaders Conversation Panel 2 | Thematics in Discretionary Mandates

In recent years, Asian HNWIs have demonstrated a growing penchant for thematic investing, be it into sleeves of structural ‘megatrends’, like robotics and AI, or broader-based investment frameworks, such as environmental, social and governance (ESG) investing. Discretionary portfolio managers in Asia are actively capitalising on client demand and potentially sound long-term returns from such themes, evolving their instrument shelves by including innovative structures, such as actively managed certificates (AMC) or ‘green bonds’.

What is your wealth manager’s view on of thematic investing within discretionary portfolio management (DPM) solutions? How are you implementing thematic investment strategies into an asset allocation framework? Are you observing, – or do you foresee, – a significant adoption of ESG strategies or overlays within discretionary mandates in Asia? What new product developments are occurring at private banks to expand their thematic investing DPM offering?

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

Conversation catalysts:
Harmen Overdijk, Founding Partner, Capital Company
Jacky Tang, Head of Portfolio Management Group; Co-Head of Investment Strategy Group, Goldman Sachs
Steven Fong, Head of Portfolio Solutions, HK, Credit Suisse

Workshop 1 | Short Duration High Yield: Same Yield for Half the Risk

High yield bonds are not just about income. With their low correlation to other asset classes and equity-like returns with lower volatility over the long term, they possess defined qualities that make them an important and complementary component of a diversified portfolio. Kevin Mathews, Aviva Investors’ Global Head of High Yield, will present views and outlook on global high yield bonds (GHY), and how Aviva Investors uncovers value to pursue superior risk-adjusted returns.

Kevin will focus on the current attractiveness of short duration high yield bonds, where investors can achieve the same yield with half the interest rate risk as standard GHY products. He will also explain how Aviva Investors’ disciplined FVT approach embedded with ESG considerations can help build a more resilient portfolio.

Workshop Host:
Kevin Mathews, Global Head of High Yield, Aviva Investors

Workshop 2 | Alternative Risk Premia – Challenges and Opportunities in 2018

What is Alternative Risk Premia anyway? Alternative Risk Premia (ARP) is a form of liquid alternative, an active diversifier away from equity risk and bond risk for investors. ARP managers typically invest in relative value, carry and momentum trades across asset classes in equities, bonds, currencies and commodities to produce a portfolio that chugs along without dependence on global growth and earnings dynamics (equity risk) nor on interest rate policy expectations (bond risk). Investor interest in ARP has grown in recent years because leading managers have delivered positive risk adjusted returns with transparency, low correlation to traditional assets, and all at a reasonable cost to investors compared to the old “hedge fund fees.” Is ARP a silver bullet or Best New Thing for investors? No. But is ARP a cost effective liquid alternative that can deliver returns and diversification for investors? Yes.

Workshop Host:
Anthony Lawler, Head of Portfolio Management, Alternative Investments Solutions, GAM Investments

Workshop 3 | Hermes Credit Abilities

Hermes believes that in current financial markets, investors need to challenge traditional
assumptions about credit markets and risk protection.
Our team avoids the well-trodden path of traditional credit management and sees ESG integration as an investment Imperative.
In his presentation, Mitch will cover a range of credit strategies seeking defined outcomes from Global High Yield to Multi-Strategy and Absolut Return Credit.

Workshop Host:
Mitch Reznick, CFA, Head of Credit Research & Co-Head, Hermes Investment Management

Workshop 4 | Fixed Income – The End of an Era, or the Beginning of a New Journey?

The popularity of Fixed Income funds has been unparalleled over recent years, with unconstrained bond funds in particular enjoying record flows. With credit spreads tight, and government bonds looking vulnerable to the return of inflation, how should we best allocate to this asset class, should clients shun completely, or just get smarter in how they access?

M&G will share their views on where they see value across the fixed Income spectrum, and detail how they are allocating capital within their most flexible vehicles.

Workshop Host:
Carlo Putti, Investment Specialist, M&G Investments

2018 Partners

 

Enquiries

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