Deutsche Bank International Private Bank (IPB) has appointed a global head of product platforms and sustainable solutions. Based in London, Muriel Danis joins the newly created position from HSBC, where she was global COO in the wealth management division’s products and investment groups. Effective 14 March, Danis will be responsible for the development of Deutsche Bank’s product and services platforms […]

The post Deutsche Bank PB looks to HSBC to fill global head of products role appeared first on Asian Private Banker.

“The trend [towards passive strategies] is already upon us,” said Jean-Louis Nakamura, Asia CIO at Lombard Odier, speaking at an investment summit in Hong Kong today. “And they will only gain market share.” Nakamura was asked whether passive investments will shape the asset management industry, especially in light of rising interest in robo solutions for building and distributing portfolio strategies. “With […]

The post The passives trend will only grow, says LO's Asia CIO Nakamura appeared first on Asian Private Banker.

“The trend [towards passive strategies] is already upon us,” said Jean-Louis Nakamura, Asia CIO at Lombard Odier, speaking at an investment summit in Hong Kong today. “And they will only gain market share.” Nakamura was asked whether passive investments will shape the asset management industry, especially in light of rising interest in robo solutions for building and distributing portfolio strategies. “With […]

The post The passives trend will only grow, says LO’s Asia CIO Nakamura appeared first on Asian Private Banker.

The year thus far has been testing for Asia’s private banks, with transactional business plummeting amidst turbulence in the equity markets; however, industry opinions over how structured products distribution will fare in the second half of the year are mixed, with more than 70% of respondents to an Asian Private Banker poll indicating that they expect volumes to either increase or flatten. In […]

The post Industry can't agree on structured product distribution over second half of year appeared first on Asian Private Banker.

The year thus far has been testing for Asia’s private banks, with transactional business plummeting amidst turbulence in the equity markets; however, industry opinions over how structured products distribution will fare in the second half of the year are mixed, with more than 70% of respondents to an Asian Private Banker poll indicating that they expect volumes to either increase or flatten. In […]

The post Industry can’t agree on structured product distribution over second half of year appeared first on Asian Private Banker.

As Chinese investors’ demand for both onshore and offshore strategies increases, Virginia Devereux Wong, head of Asia wholesale business at Standard Life Investments, believes that international asset managers must work closer with Chinese product providers. Wong expects Chinese private banks to become a dominant force in Asia within the next decade, simply due to their “sheer scale and client numbers”. […]

The post At the Gates with Standard Life Investments: Collaboration key to tap China market appeared first on Asian Private Banker.

As competition for the Asian mutual funds market continues to accelerate and cost pressures increase, asset managers are seeking alternative methods of distribution via digital platforms to counter the increasing dominance of banks and brokerages in distribution, according to research provider Cerulli. The newly-released report states that many asset managers have reached the conclusion that digital channels are “set to play a […]

The post Digital channels "the next stage of distribution", says Cerulli appeared first on Asian Private Banker.

As competition for the Asian mutual funds market continues to accelerate and cost pressures increase, asset managers are seeking alternative methods of distribution via digital platforms to counter the increasing dominance of banks and brokerages in distribution, according to research provider Cerulli. The newly-released report states that many asset managers have reached the conclusion that digital channels are “set to play a […]

The post Digital channels “the next stage of distribution”, says Cerulli appeared first on Asian Private Banker.

A newly launched multi-manager platform from Standard Chartered and FundRock will provide asset managers with an expedited option to leverage the UCITS standard. The Luxembourg “Straight2UCITS” platform aims to help non-western asset managers launch, operate and distribute their products as dedicated UCITS sub-funds in a time and cost-efficient manner within a robust risk and compliance control environment. “Whilst a UCITS […]

The post New multi-manager platform to ease non-Western fund access to UCITS distribution appeared first on Asian Private Banker.

Global macro hedge fund strategies are gaining speed on the back of improved economic momentum in developed markets, with exposure to European and Japanese equities reaping the best return within the product group, says Lyxor, a hedge fund platform. Lyxor’s Global Macro index has led the pack this past week, growing 0.4% week-to-date, from 24th of May to 31st May, 2016. The […]

The post Global macro hedge fund strategies being driven by improving conditions in developed markets, says Lyxor appeared first on Asian Private Banker.

Asian HNW investors’ rampant appetite for multi assets funds is being stimulated by diminished returns from bond holdings, says Virginia Devereux Wong, head of Asia wholesale business at Standard Life Investments. According to Devereux, private banking clients across Asia are turning to multi asset strategies as “volatility buffer[s]” and “income diversifier[s]”, given the weak global macro environment. “We have seen global investors […]

The post Asian HNWI appetite for multi asset funds growing: Standard Life Investments appeared first on Asian Private Banker.

Multi-asset funds and income strategies continue to top rankings in terms of selector interest in Asia Pacific, according to research provider Cerulli. A recent survey shows that asset managers, benefiting from high-yield bond fund outflows, are actively promoting multi-asset strategies in Hong Kong, China and Taiwan. Also piquing interest are European and Japanese equity funds, although equity fund appetite in most Asian markets […]

The post In APAC, appetite for multi-asset and income funds remains appeared first on Asian Private Banker.

Event-driven hedge fund strategies have performed well and should continue to do so due to a cocktail of positive macro factors, including low global interest rates, near-record cash holdings on corporate balance sheets, and sky-high stock prices in the US, reports Lyxor, a hedge fund platform. Event-driven fund indices, including the Special Situations and Merger Arbitrage hedge fund indices, have […]

The post Event-driven hedge funds benefiting from spry M&A activity, says Lyxor appeared first on Asian Private Banker.

Distributors and clients should not look at the current valuation of emerging markets, but instead focus on the fundamentals of individual markets using value-driven equities strategies in the region, says global asset manager M&G Investments. In light of the looming Federal Reserve rate hike this year, many distributors and clients are wary of its impending impact on the performance of emerging markets. In particular, […]

The post Asian investors need to take a more sober, fundamental-driven look at EM equities appeared first on Asian Private Banker.

Active fixed income fund managers are no longer immune to the wave of capital outflow into passive index-tracking funds, global analytics firm Cerulli notes in its latest research report. During the first quarter of 2016, U.S. taxable bond ETFs saw an inflow of US$32.2 billion, boosting assets to over US$428 billion, or 17.4% of the ETF universe. This trend has been […]

The post Q1 inflows into U.S. taxable bond ETFs top US$30 billion appeared first on Asian Private Banker.

2016 has been a sluggish year thus far for net fund sales via the private banking channel in Asia, with 50% of relationship managers and investment advisors reporting year-to-date decreases in fund inflows, according to a survey conducted by Asian Private Banker. The poor result is likely attributable to an earlier slump in the global equities market, and a looming rates hike […]

The post Private bankers report sluggish fund sales across Asia appeared first on Asian Private Banker.

Heads of private banks across Asia are grappling with the challenges of managing a still trade-heavy and market-correlated business. Multi asset funds may be first true all-weather tool that is not a discretionary portfolio.

The post The multi asset play: Here to stay? appeared first on Asian Private Banker.

In a move aimed to enhance its structured products offering, Bank of Singapore has licensed the Morningstar Exponential Technologies Moat Focus Index, in the process becoming the investment research provider’s first client of its kind in Asia. The index builds on the the concept of an economic moat, or sustainable competitive advantage that allows companies to maintain – if not, […]

The post BoS to leverage Morningstar indices to manufacture structured products appeared first on Asian Private Banker.

At BlackRock’s latest Asia media forum, speakers shared their perspectives on various disruptive trends affecting the region’s wealth management scene – and the opportunities and threats they bring. Asian Private Banker covers some of the session’s more salient points. Technological disruptions Undoubtedly one of the more pressing issues facing private banks in the region is how best to scale up their […]

The post Top 3 disruptions transforming Asia's private banking landscape appeared first on Asian Private Banker.

In its drive to generate recurring income, Bank of Singapore has raised US$143 million year-to-date from its UHNW clients with a diversified portfolio of Asian equities and bonds. According to the bank, the strategy offered “timely respite to clients looking for steady returns” amidst heightened and persistent market turbulence since 2015 In addition, the Singaporean private bank has also raised […]

The post Managed investment assets grow at BoS; multi asset strategy raises US$143 million from UHNWIs appeared first on Asian Private Banker.

Persistent turbulence and episodes of market-wide drawdowns have led to increased demand for absolute return solutions including hedge funds. However, one portfolio manager believes such strategies are, by no means, all-weather solutions, due to their ability to destroy value over time. “I have covered the hedge fund space for more than 15 years and I am convinced that tactical short-term asset […]

The post Short-term asset allocation destroys value: PineBridge appeared first on Asian Private Banker.

Persistent market turbulence, while undermining confidence in conventional investment approaches, is piquing some interest in beta solutions including quant strategies. However, a survey conducted by Asian Private Banker reveals that general client hunger for such products remains muted, and that private banks across Asia are reticent to assume early mover status in the beta space, instead preferring to wait out the […]

The post Private banks, clients remain lukewarm on quant strategies appeared first on Asian Private Banker.

With Asia’s more sophisticated investors slowly pivoting away from purely domestic strategies, the onus is falling on private banks to offer up more pan-Asian solutions. However, Rhee Jung Ho, Mirae Asset’s president and chief executive, believes that the “strong home bias preference” at Asian private banks for single-market strategies remains a significant obstacle for clients who would like to diversify investments beyond […]

The post At the Gates with Mirae Asset: Asian PBs need to offer more regional products appeared first on Asian Private Banker.

While US equity funds experienced net outflows of approximately US$100 billion over the past year (including 2016Q1), passive US equity funds bucked the trend by recording inflows of US$110 billion over the same period. Data from Morningstar shows that passive US equity fund flows were only bettered by mutual funds and ETFs, while US equity funds as a whole experienced […]

The post Passive US equity funds record significant inflows, as outflows hit active funds appeared first on Asian Private Banker.

The global chase for better returns in a volatile and low-yield environment has done little for the broader universe of global hedge fund capital, which has lost an estimated US$15 billion in 2016’s first quarter. However, UCITS alternatives have remained resilient, having experienced strong inflows of €3.6 billion (US$4.2 billion) in March alone. And for the whole of this year’s […]

The post Alternative UCITS add US$9 billion in Q1 despite overall hedge fund exodus appeared first on Asian Private Banker.

Amidst ongoing market hostility, BNP Paribas Wealth Management in Asia is recommending that clients add exposure to hedge fund strategies combined with credit-linked notes (CLNs), so as to better manage portfolio volatility and minimise correlations to traditional assets. The French wealth manager is advising clients, where suitable, to pick up exposure across a range of long-short equity strategies – the […]

The post BNP Paribas WM recommends long-short strat with CLN appeared first on Asian Private Banker.

The first quarter of 2016 was virtually a consensus write-off for fund selectors at private banks, with over 69% meeting less than 15% of their annual target, according to a survey conducted by Asian Private Banker. The poor result confirms the fact that this has been the worst start for equities in two decades, with looming FICC (fixed income, currencies and […]

The post Asia’s selectors lag behind in annual targets appeared first on Asian Private Banker.

Asia’s asset managers are, of course, eager to capture inflows from locals and further afield, but local investment bias is holding back the growth of the region’s industry. That is according to Beonca Yip, head of sales at Investec Asset Management, who says that those asset managers that will grow at a faster rate and capture more opportunities in the […]

The post At the gates with Investec: home bias driving Asian fund market appeared first on Asian Private Banker.

Fund houses are failing to adequately train and educate private bankers in the eyes of Asia’s fund selectors, according to internal data produced by APB Mandate. In a survey conducted by APB Mandate, 23% of respondents rated fund house education programmes for private bankers a paltry 2 out of 5, and 54% of respondents rated the quality of training and […]

The post Fund house training intiatives falling short: fund selectors appeared first on Asian Private Banker.

A familiar scene for anyone who has attended a fund sales pitch is that of private bankers, heads down and poking away at their smart phones. Who’s to blame here? Private bankers with their ostensibly short attention spans or asset managers themselves? M&G’s Ben Cherrington believes that it’s the asset managers that must shoulder the responsibility. “I see a lot of mediocre […]

The post Fund sales people in Asia “mediocre” and not memorable: M&G appeared first on Asian Private Banker.

Existing players and taxation hurdles remain overriding influences in Australia’s fund market limiting high net worth investor choice, claims analytic firm, Cerulli. According to Cerulli, the Australian asset management industry is, in its present state, insulated from foreign asset managers. The total worth of the mutual fund market is just under US$1.6 trillion as June 2015. However, only 52 funds […]

The post Australian HNWIs deprived of access to foreign asset managers appeared first on Asian Private Banker.

Noah International has further bolstered its investment capabilities – particularly in private equity – with the hire of a new co-CIO. Wang Piau Voon, formerly a partner with Adam Streets, joins the Shanghai-based wealth manager as its new co-CIO, to alongside William Ma, while also overseeing private market strategies. “We are very excited to have PV (Piau Voon) on board. He […]

The post Noah hires new co-CIO from Adam Streets Partner appeared first on Asian Private Banker.

Old investor habits die hard, according to Beonca Yip, regional head of advisory distribution, Asia ex-Japan at Investec Asset Management, who tells APB Mandate that the ostensible lure of mutual funds in the midst of Asia market volatility and China’s slowdown has not yet translated into substantial inflows in the region. Compared with their European counterparts who have put an average […]

The post Asia’s 'new rich' slow to pick up on mutual funds appeared first on Asian Private Banker.

Although nascent, the impacting investing industry in Asia is gaining popularity among private banks, with Credit Suisse Private Banking stating that it will roll out an education bond in the second half of 2016. “A new education bond/note which measures impact in the tertiary education system will be rolled out in the second half of this year in Asia,” says […]

The post Credit Suisse PB Asia to roll out education bond this year appeared first on Asian Private Banker.

Although the Middle Kingdom’s equity market took a hit in the latter half of last year, offshore investors may rest assured, according to research provider Morningstar. Larger active fund managers, in particular those managing strategies approved for the Mainland-Hong Kong Mutual Recognition of Funds (MRF) scheme, have still been able to generate attractive alpha, using their scale of operations as a […]

The post China onshore funds remain steadfast despite headwinds appeared first on Asian Private Banker.

Hedge funds have reported losses on most fronts in the first quarter of 2016, with commodity trading advisor (CTA) and merger arbitrage strategies constituting the only bright spots in what has been a “killer quarter” for the segment, reports Lyxor, a hedge fund platform. Globally, scant organic growth, the persistence of low beta, and the dovish responses from central bankers […]

The post Merger arbitrage hedge funds gain against headwinds appeared first on Asian Private Banker.

While a steady influx of fund houses into the Asia Pacific region is ramping up competition for new asset inflows, scale is likely to prove a deciding factor when determining who thrives and who withers. This is according to Christian Bucaro, head of private wealth distribution at BNP Paribas Investment Partners, who believes that players without the scale to supply […]

The post At the Gates with BNP Investment Partners: Scale makes sense for Asia’s sophisticated investors appeared first on Asian Private Banker.

Banks remain in the driver’s seat of China’s onshore asset management industry, which turned in a “record-high” RMB23.5 trillion (US$3.6 trillion) in wealth management product (WMP) assets under management (AUM) in 2015, notes a global analytics firm. This means that banks maintain their leading position in the sector “ahead of trusts, insurers, and fund management companies”, said Cerulli in a […]

The post Mainland WMP assets set for more growth, regulation appeared first on Asian Private Banker.

As much as half of recent demand in Asia for a European dividend fund is coming from private banks and other wealthy investments, M&G Investments tells Asian Private Banker. This ties in with a renewed favour among investors for European equities, following the European Central Bank’s latest quantitative easing measures. Jeik Sohn, the asset manager’s Asia investment director, notes the strong […]

The post Asian wealthy seek European dividends, says M&G appeared first on Asian Private Banker.

Wealth management products (WMPs) invested through Chinese banks are growing rapidly into a substantial part of domestic credit and consequently, institutions could face “liquidity and funding pressures in the event of market volatility”, notes a global ratings agency. Such products are also accounting for an increasing proportion of funding at Chinese banks, particularly mid-tier ones, Fitch added in a report. […]

The post Chinese WMPs a potential "key source of credit and liquidity risk" appeared first on Asian Private Banker.

Complaints have risen over the potential misselling of accumulators linked to the renminbi (RMB), noted the Hong Kong Monetary Authority (HKMA), referring to a product that since the global financial crisis has been sold more to high net worth investors than the general retail market. At a Securities and Futures Commission Forum in Hong Kong earlier this month, Meena Datwani, […]

The post Misselling complaints rise over RMB-linked accumulator sales appeared first on Asian Private Banker.

The exchange traded fund (ETF) tailwinds of expanded research, decreasing appetite to make macro calls and increasing opportunities for tactical trades are resulting in the passive vehicle gaining a larger share of Asia’s discretionary mandates, albeit with still low penetration rates. (This article first appeared in Issue 97 of Asian Private Banker’s monthly print magazine, published in the first week […]

The post The ETF strategy appeared first on Asian Private Banker.

As markets continue to test traditional investment assumptions and scrutiny of fundamental active management grows, private banks in the region continue to gauge interest on quantitative investing with scant but material interest, and not just in commodity trading advisors (CTAs). In addition to CTAs, private banks and asset managers are in the midst of distributing other quant strategies in the […]

The post Asian HNWIs begin dipping into more quant strategies appeared first on Asian Private Banker.

China plans to kickstart the long-awaited stock connect scheme between Hong Kong and Shenzhen in 2016, the country’s premier Li Keqiang revealed today at the country’s annual parliamentary National People’s Congress. This will expand on the current trading link between Hong Kong and Shanghai that kicked off in November 2014 to great fanfare. Sentiment however, has soured since Chinese equities market […]

The post Shenzhen-HK Stock Connect could start this year, says China premier appeared first on Asian Private Banker.

The European Central Bank’s announcement to include corporate bonds issued in euro by Eurozone non-bank corporations into the existing scope of its quantitative easing program may move pan-European high yield spreads to below 400 bps, says hedge fund platform Lyxor. Fixed income funds, hedge funds utilising credit arbitrage strategies and Global Macro funds are set to benefit, noted Philippe Ferreira, Lyxor […]

The post European high yield set to benefit from ECB easing appeared first on Asian Private Banker.

Investment banks continue to have a brokerage approach to structured product distribution, even as private banks are adamant that they focus on a more sophisticated advisory role. “Best execution is no longer a differentiator,” says a capital markets veteran at a major private bank in Asia, echoing the sentiments of many industry players. “Any investment bank that isn’t truly committed […]

The post I-bankers need to generate more ideas, say p-bankers appeared first on Asian Private Banker.

Private banking clients are moving to unconstrained fixed income strategy funds with US treasuries as the core asset, Legg Mason tells Asian Private Banker. This comes on the back of instability in the global credit market, with the US Federal Reserve expected to further raise rates this year. With global economic growth still sluggish and risk control taking priority for […]

The post Asian private banks keen on unconstrained fixed income strategy appeared first on Asian Private Banker.

With income more than offsetting capital risks, Asian high net worth individuals (HNWIs) are increasingly investing in preferred securities to supplement core equities purchases, says Principal Global Investors. While the equities market, in particular China, got off to a “horrendous” start at the beginning of 2016, US dollar-denominated fixed income assets saw the exact opposite, it noted. Preferred securities should […]

The post Demand for preferred securities up among HNWIs appeared first on Asian Private Banker.

Just less than three years ago, the distribution of exchange-traded funds (ETFs) at private banks in Asia was still in its embryonic stages, and it was anybody’s guess when or if the market would grow to rival its western counterparts. This is no longer the case, with ETF assets owned by wealthy Asian investors rising by as much as 200% […]

The post ETFs gain private banking boost appeared first on Asian Private Banker.

Principal is not the first, and likely not be the last American asset manager to try building a presence in the growing private banking distribution channel in Asia. Being a late comer to the market and size of a boutique, its chief executive of Asia tells Asian Private Bankers how breadth of operations and being specialists pays off. Multi-boutique approach […]

The post At the gates with Principal Global Investor: regional expertise key to reach Asian HNWIs appeared first on Asian Private Banker.

Continued de-risking has favoured CTAs and merger arbitrage, leading to positive results for hedge funds employing those strategies, says hedge fund platform Lyxor. With selling pressure in risky assets halted by mid-February, and players staying out of the market till the latter part of February, CTAs benefited greatly in their long bond positions, and equity and energy shorts earlier in the […]

The post Hedge funds buoyed by global de-risking appeared first on Asian Private Banker.

In its bid to establish Malaysia as the global hub for Sharia-compliant capital markets, the Malaysia Securities Commission (SC) announced that it would launch its blueprint this year to develop Islamic fund and wealth management. The initiative, named Islamic Fund and Wealth Management (IFWM), will be launched to capitalise on the country’s “leadership in the Islamic fund management industry.” According […]

The post Malaysia to launch Islamic WM blueprint appeared first on Asian Private Banker.

Bank of Communications Schroder Fund Management (BOCOM Schroders) is the latest of eight asset managers to have their funds approved by the Hong Kong Securities and Futures Commission (SFC) for cross-border Mutual Recognition of Funds (MRF) distribution in the city. BOCOM Schroders said the SFC approved two of its funds – BOCOM Schroder Growth Mixed Securities Investment Fund and the […]

The post Schroders launches southbound MRF funds appeared first on Asian Private Banker.

As part of its ongoing shift from product manufacturer to investment solutions provider, BNP Paribas wants to pool resources to develop deeper relationships with top wealth houses, rather than cast a wide and undifferentiated net in the region, says its Asia global markets sales head to private banks. “My understanding is that in the past, structured products distribution in Asia was […]

The post BNP Paribas’ Asia global markets unit sets sights on top 20 private banks appeared first on Asian Private Banker.

The US asset manager sees factor investing as an increasingly important component in risk management, and is applying the philosophy to create products for private banks, says its Asia ex-Japan head of private bank business and strategic client development. With the help of Columbia Business School professor Andrew Ang, BlackRock aims to use factor investing as a “lens” to construct portfolios without traditional […]

The post BlackRock targets factor-based investing for private bank products appeared first on Asian Private Banker.

Certain large fund houses refuse to extend value-added services to smaller private banks due to lacking business attraction. Smaller ones that lack the capacity to service several hundred bankers are turned away by large wealth managers. BlackRock believes it has something for everyone and is adamant to leave no private banking stone unturned, having grown its distribution to the region’s […]

The post At the Gates with BlackRock: Go big or go home appeared first on Asian Private Banker.

Cognisant that this is the year to time markets to move in and out to generate meaningful total return, Credit Suisse is launching a tactical fund recommendation list in the region, with a focus on the short-term trading elements of exchange-traded funds (ETFs). “[The list] mainly consists of ETFs,” says Rodolphe Larqué, Asia Pacific head of funds and ETFs at Credit […]

The post Credit Suisse launched tactical fund list in Asia appeared first on Asian Private Banker.

In light of the increasingly volatile public markets, Standard Chartered (StanChart) is tapping into the growing appetite for long-term investing through the launch of its new Pegasus Series private equity (PE) offering. The programme is aimed at offering to high net worth individuals (HNWIs) exclusive private investment funds that are difficult to access on an individual basis. This comes with […]

The post StanChart Private Bank launches PE offering appeared first on Asian Private Banker.

Fuelled by concerns of a 30% withholding tax on dividends paid by US underliers, private banks continue to shift exchange traded funds (ETFs) to friendlier domiciles, note iShares, highlighting the move as a major driver of US$560 million in Asian high net worth inflows. “This trend of buying UCITS ETFs due to tax implications, which began last year, continues as the […]

The post Tax concerns fuel US$560 million ETF inflows appeared first on Asian Private Banker.

As European Union (EU) officials prepare to extend the Alternative Investment Fund Managers Directive (AIFMD) marketing passport at the end of June, a global analytics firm is expecting the number of AIFM platforms with full distribution services to grow over the next three years. As the reigning EU National Private Placement Regimes (NPPRs) may be deactivated en masse at the […]

The post Non-EU funds to gain alternative route to Europe appeared first on Asian Private Banker.

More HNWIs in Asia are exploring private deals in ventures that target middle class growth in China, notes Deutsche Bank Asset Management, in the belief that the country can shrug off its current slowdown and successfully transition to a consumption-led economic model. “Whether China hits its GDP target or not, the fundamental reality is that you have a large middle class […]

The post Chinese PE luring Asian HNWI interest in spite of downturn appeared first on Asian Private Banker.

Private banks in Asia are witnessing an evolution of the fixed income trading platforms that they are plugged into. However as Asian Private Banker finds out, distributors and technology platform providers remain divided on what the perfect platform should look like. (This article first appeared in Issue 96 of Asian Private Banker’s monthly print magazine, published in the first week of February 2016.) […]

The post Tech platforms: More bang for your bond? appeared first on Asian Private Banker.

UCITS-approved alternative funds is seeing fast growth in Asia ex-Japan due to regulatory incentives and demand for diversification, says a global analytics firm, adding that providers and private banks are seeing liquid alternatives as a growth area in 2016. In South Korea and Taiwan, for instance, notes Cerulli, regulators have eased barriers on liquid alternative funds in order to boost […]

The post Liquid alternative funds new favourite for Asian HNWIs appeared first on Asian Private Banker.

The big misconception about Australia is that it is totally dependent on mining and China, says a portfolio manager at Martin Currie, the independent affiliate of global asset manager Legg Mason, noting that education and tourism are equally significant exports. “But the truth is that mining has never represented more than 15% of GDP since 2001, not to mention, China […]

The post Yield-hungry investors overlooking Australia? appeared first on Asian Private Banker.

Franklin Templeton has joined the race to offer smaller investors access to alternatives amid heightened market volatility and uncertainty. The Franklin F2 Alternative Strategies Fund’s minimum investment amount has been significantly reduced from S$100,000 (US$71,328) to S$1,000 (US$713). The race is on to provide smaller-sized investors access to alternatives in volatile market conditions. While the move to lower minimum ticket sizes […]

The post US fund manager rejigs HNW offering for retail access appeared first on Asian Private Banker.

Less than one month after Goldman Sachs Asset Management (GSAM) announced that the Monetary Authority of Singapore (MAS) had approved its range of 13 funds for distribution to retail investors, the US asset manager says it will launch the products through HSBC and Standard Chartered. Jessica Jones, GSAM managing director and head of Asia Pacific ex-Japan third party distribution, had already […]

The post GSAM pushes Singapore retail drive through HSBC, Standard Chartered appeared first on Asian Private Banker.

Weak growth and diverging monetary policies to set the stage for fixed income operations this year, experts tell Asian Private Banker. (This article first appeared in Issue 96 of Asian Private Banker’s monthly print magazine, published in the first week of February 2016.) Leveraging is set to be a thing of the past, risk control will take priority, and the fixed income business may […]

The post Fixed income to stay elusive in 2016 appeared first on Asian Private Banker.

The high barrier of entry into hedge fund strategies may bar most Asian HNWIs from access unless investors opt for solutions with smaller ticket sizes, such as structured products, and Deutsche Asset Management (AM) sees itself as the lone manufacturer in Asia capable of delivering. “We haven’t seen any asset manager that has been able to successfully roll out hedge […]

The post Hedge fund-linked notes a one-horse race in Asia, claims Deutsche AM appeared first on Asian Private Banker.

To private banks sourcing income via equity dividend strategies, Pioneer warns of concentration risks from skewed security selection and the bypassed opportunity to participate in capital appreciation. “Traditional income strategies tend to skew to high dividend areas with less exposure to earnings growth and price appreciation in order to fulfil income distribution obligations,” says Fiona English, client portfolio manager at […]

The post Beware of concentration risk in equity income strategies, says Pioneer appeared first on Asian Private Banker.

As asset managers continue growing in a market that is no longer conducive for excessive active trading, global fund research house Morningstar is observing an uptick in the diversity of the emerging market (EM) funds group. According the firm, there has been an emergence of new EM strategies that fall into the four distinct subgroups: geographically flexible funds (invested in […]

The post Morningstar sees diversity growth in EM fund group appeared first on Asian Private Banker.

Despite the lacklustre performance of hedge funds last year—the HFRX Global Hedge Fund Index registered -2.5% in 2015—this is the year to to bet alternatives as the German wealth manager forecasts 7.4% gains. The bank’s APAC CIO, Sean Taylor, highlighted discretionary macro and equity market neutral strategies as the optimal way to access alternative strategies amid a year of expected […]

The post Deutsche WM bets on liquid alts to make 7.4% gains appeared first on Asian Private Banker.

Amidst an outflow of asset from equity funds due to a China-induced turmoil, US equities may provide a safe haven due to the strengthening dollar, research shows. Market watchers may find US equity funds facing macro headwinds such as a potential “risk-off” stance by the investors, sparked by the run-up to the US presidential election, rich valuations, and more importantly the FX […]

The post Soaring greenback benefiting European funds appeared first on Asian Private Banker.

The China Banking Regulatory Commission (CBRC) is reported to have cracked down on the recurring issue of high-yield Wealth Management Products (WMPs), again. Similar reports have appeared in recent years, and the situation has never been remedied, revealing a significant weak spot in China’s finance industry. WMPs are in essence off-balance sheet loans restructured into high yield notes. It was […]

The post China reportedly looking to curb WMPs after stock market crashes appeared first on Asian Private Banker.

CNY depreciation is triggering a surge for risk aversion for participants in the hedge fund universe, hitting “most directional strategies” but boosting the CTA energy sector, says hedge fund platform Lyxor. The hedge fund platform believed that the data set released last week, which included some “disappointing” China PMI statistics, was “mixed but not disruptive”. In general, the market still […]

The post CTAs benefit from losing confidence in Beijing’s hand over the RMB appeared first on Asian Private Banker.

This forecast comes on the back of similarly rising costs toward active alpha strategies, which should improve the appeal for ETFs, notes a global research firm. Cerulli wrote in its annual global outlook that “finding ways to counter downward fees” will be the “focal point” for the global asset management industry in 2016. “In 2016, the clamour for reduced fees, […]

The post Global ETF sales set to rise appeared first on Asian Private Banker.

BNP Paribas Investment Partners (BNPPIP), the asset management arm of BNP Paribas, is set to provide clients with a broader range of alternative investments after partnering real estate and private equity specialist Orion Partners. Going forward, BNPP Capital Partners (CP), the alternative investment selections arm of BNPPIP, plans to develop and launch new funds with Orion to meet growing demand for […]

The post BNP Paribas, Orion inks deal to expand alt offerings appeared first on Asian Private Banker.

The overall exchange-traded funds (ETF) industry expanded at a record-breaking US$347 billion last year, BlackRock noted today, despite weak equity markets. “Across the Asia Pacific region, every type of institution increased usage of iShares – insurers, sovereign wealth funds, asset and wealth managers,” said Susan Chan, head of Asia Pacific iShares at BlackRock, referring to the firm’s ETF division. She […]

The post ETFs set record in 2015 appeared first on Asian Private Banker.

Right before 2015 draws to a close, Hong Kong’s Securities and Futures Commission (SFC) has approved nine more funds from seven fund houses under the Mutual Recognition of Funds (MRF) scheme between mainland China and Hong Kong. These include three funds from J.P. Morgan Asset Management’s (JPMAM) joint venture with China International Fund Management and one from Sino-American joint venture Invesco […]

The post Nine more southbound MRF funds greenlit before new year appeared first on Asian Private Banker.

Starting 4 January 2016, China’s central bank said the country will double the renminbi’s trading hours, as it prepares to join the International Monetary Fund’s (IMF) reserve currency basket in October. This, experts note, is the first step toward making yuan trading hours in line with currencies like the greenback, euro and yen. The People’s Bank of China said yesterday that yuan […]

The post China extends yuan trading hours, may revoke fund management registrations for banks appeared first on Asian Private Banker.

Distribution and brand building costs remain high in Malaysia even as market demand for foreign funds continues to rise, notes a global research house. A prominent driver of asset under management (AUM) growth in Malaysia seems to be the demand for foreign-invested funds (FIFs), says a Cerulli report, adding that foreign houses have being increasingly active in the Southeast Asian nation […]

The post Costs to temper rising M’sian foreign fund demand appeared first on Asian Private Banker.

The first batch of seven approved funds under the much-heralded Mutual Recognition of Funds (MRF) scheme was named last week, out of some 50 initial applications; this sets a cautious tone that many see as deliberate to encourage better subscription rates. Sources also tell APB Mandate that more funds might be approved as early as next month, given that these […]

The post Low MRF approval rate aims at higher chance of success appeared first on Asian Private Banker.

In a bid to expand its structured product offering, Malaysian lender Maybank has announced a partnership with technology firm and structured product distribution provider Leonteq. Leonteq wil support Maybank in the origination and lifecycle management of structured investment products along the entire value chain. It will provide the automated platform for the Malaysian lender, with the first products made available […]

The post Maybank signs with Leonteq for structured product distribution appeared first on Asian Private Banker.

The APAC ex-Japan equities ETF market posted a net outflow of US$ 1.2 billion for the first eleven months of 2015, although fixed income and commodities ETFs did make some net gain on a year-to-date (YTD) basis, reports a global research consultancy. According to ETFGI, in the first eleven months of the year, ETFs in APAC ex- Japan markets saw net inflows of […]

The post Capital exodus from equities ETFs in APAC ex-Japan appeared first on Asian Private Banker.

As valuations in public markets get frothy, private markets are looking increasingly attractive for Asian HNWIs; DBS intends to get on that train with the launch of its direct access private equity offering, PE Access. The offering will be limited to the bank’s UHNW clients via an “introducer model” that will inform them of new private equity deals for them […]

The post DBS Private Bank launches direct access private equity deals appeared first on Asian Private Banker.

Disappointed by the intervention made by the European Central Bank (ECB) last week, hedge funds, be it global macro or CTA oriented,  were stung by raising Euro against the dollar, according to recent report by Lyxor. Lyxor’s hedge fund index was up 0.6% last week, until it hit a brick wall on December 3rd when the president of the ECB, […]

The post Draghi disappoints as CTA indices dragged appeared first on Asian Private Banker.

Deutsche Bank’s asset management division successfully taps into the segment of Asian HNWIs that are married to structured products or lacking critical asset size but want to gain access to a broader basket of managers. The German lender managed to triple its fund derivatives sale to private banking clients in Asia amid a market that is unconducive to active or […]

The post Deutsche Bank’s fund arm triples fund derivatives sales appeared first on Asian Private Banker.

When the good times roll on for global markets, investors may not scrutinise the difference between a fund generating 20% and one generating 19%. But when hard times hit, every basis point counts. CSOP’s head of capital markets believes those times may be upon us, meaning it is either time for closet trackers to shape up or watch ETFs become […]

The post At the Gates with CSOP: Opening the door on closet trackers appeared first on Asian Private Banker.

Despite the exits of major fund houses from the Indian mutual fund industry, a global research house believes that global players should continue in the market given the concentration of assets in just a few fund houses. In order for foreign competitors to sustainably build presence in India over the longer term, defined as beyond three to five years, notes Cerulli, partnering […]

The post Don’t sleep on India’s fund potential, research shows appeared first on Asian Private Banker.

Deutsche Bank’s asset management arm has seen a four to five-fold growth in liquid alternatives sales to private banks in the region, as HNWIs sought solutions to mitigate declines caused by China-driven volatility. “This has been a record year for our liquid alternatives business with some inflows into private banks’ discretionary mandates but mostly on an advisory basis,” notes Karim […]

The post Deutsche fund arm more than quadruples liquid alts sale to Asian HNWIs appeared first on Asian Private Banker.

While some asset managers innovate or spend to manufacture funds for the times, others revert to one of the oldest tricks in the book – product relabelling – to the dismay of Asian private banking gatekeepers. “I wasn’t born yesterday,” says one Singapore-based fund veteran at a large European private bank, of “certain players” for pushing long-only plain vanilla products […]

The post Unjust fund relabelling irks gatekeepers appeared first on Asian Private Banker.

Out latest pick comes from BNP Paribas Wealth Management. A solution linked to a basket of established funds with a volatility control mechanism We are at an inflection point where global growth is shifting from emerging to developed markets for the first time in this decade. Against this backdrop of changing dynamics, erratic price movements in equity, commodity and forex markets could persist due […]

The post APB Structured Product Pick appeared first on Asian Private Banker.

Fund product features that adapt to their markets are more important than product customisation for HNWIs in Asia, notes a global research firm. Cerulli polled 3,000 investors in China, Hong Kong, Taiwan, Korea, India, and Singapore on investment behaviour. Of these, particularly those from Hong Kong, India and Singapore, the research house found that the need for greater customisation “diminishes […]

The post Bespoke fund products for Asian HNWIs overrated appeared first on Asian Private Banker.

GF International Investment Management aims to grow on the back of further internationalisation of China’s A shares, with foreign participation in this market currently lower than 2%, notes a senior executive at the fund house. For example, it launched its first exchange traded fund (ETF) product tracking the MSCI China A International Index earlier this year, in anticipation of the […]

The post GF International targets key position in HNW China portfolios appeared first on Asian Private Banker.

Heightened market volatility and uncertainty has helped drive inflows from Asian HNWIs into managed investments – an uphill battle in the region – and 33% of private banks expect fund penetration to reach 10-15% by year-end, based on a recent Asian Private Banker (APB) survey, with over 10% indicating this could even exceed 20%. Even with market tailwinds, gatekeepers have […]

The post Asian private bank fund penetration rates could exceed 20% appeared first on Asian Private Banker.

The UK-based fund house said today in Singapore that two multi-strategy UCITS funds have been greenlighted for sale in Asia to institutional and HNW investors looking for risk-averse options. The Aviva Investors Multi-Strategy Target Return Fund (TRF) and the Aviva Investors Multi-Strategy Target Income Fund (TIF) were today approved by the Monetary Authority of Singapore in a list of restricted […]

The post Aviva Investors launches two UCITS funds for HNW, institutional investors appeared first on Asian Private Banker.

Structured products distribution providers continue to expand in Asia with a former DBS head of trading and derivatives joining the niche sector. Calvin Yeap has left DBS for Leonteq as head of business innovation, based in Singapore. At DBS, Yeap spearheaded the structured products business and worked closely with Leonteq, Avaloq and Numerix to launch the IPDS initiative, a multi-issuer platform […]

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Wing Lung Bank has confirmed it will be part of the first Mutual Recognition of Funds (MRF) flow between Hong Kong and Shanghai, with the name of approved funds expected to be released before the year is out. Wing Lung, owned by China Merchants Bank, expects to onboard 16 funds from mainland Chinese fund houses, which include local joint ventures, […]

The post Wing Lung Bank to onboard 16 funds from southbound MRF channel appeared first on Asian Private Banker.

This article first appeared in Issue 92 of Asian Private Banker’s monthly print magazine, published in the first week of October 2015. ——— Private banks insist that they can’t just absorb a banned trailer but a sure solution is far from being found. On boarding new products at a private bank can take anywhere between three to six months, not to mention the […]

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This article first appeared in Issue 92 of Asian Private Banker’s monthly print magazine, published in the first week of October 2015. ——— Although private banks in the region are ramping up efforts to boost their fund businesses, full suite organic buildouts are far and few between and it does not seem likely to change anytime soon. Fund businesses at private […]

The post Inorganic platform buildout here to stay appeared first on Asian Private Banker.

ACE Life is looking to partner another player in the wealth management industry in Asia as it targets further growth in the region, Asian Private Banker has learnt. Allan Lam, country president of ACE Life in Hong Kong, says that he “expects Asia Pacific will continue to be the region with the fastest-growing and biggest HNWI population, ahead of the […]

The post ACE Life targets larger slice of Asia’s private wealth market appeared first on Asian Private Banker.