Asian players with a Western appetite
Iris Chen, China AMC
Western private banks may be looking East, but Asian managers are also looking to raise their profiles and gather assets from the US and Europe, writes Yuri Bender
There is no shortage of Western private banks and asset managers who wish to make their fortunes in Asia. The activities of medium-sized Swiss players such as Sarasin and now UBP are becoming increasingly interesting, while Julius Baer has already named Asia as its “second home market”.
Yet despite the often hubristic claims from US and European managers, Asia has a more realistic position in many business portfolios. Just one in 10 of the 58 per cent of asset houses who see Asia as a major story expect the continent to dominate growth, reveals research from the Create consultancy, headed by Amin Rajan.
What is increasingly clear is that many of these companies must watch their backs, because Asian houses have their own ambitions in Europe and the US. The Beijing-headquartered China Asset Management Company has been launching Ucits-registered funds in Luxembourg, allowing European banks access to locally-managed Chinese equities, in a bid to raise its profile and gather assets form further flung markets.
“China is the economy everyone knows, but you need to be careful who you put your money with,” says Iris Chen who heads up foreign distribution for China AMC from Hong Kong.
“We are the first China managers to the Ucits platform and we want to deliver a message to the European industry: OK, this thing is volatile, but we are the oldest one in the Chinese industry. We are 13 years old, that’s how old the industry is and this is what we do for a living.”
As a market leader in China, Ms Chen now wants to facilitate the provision of these services in Europe, meaning Switzerland and the UK in particular, with private banks a particular target.
Mirae Asset, a Korean funds house operating in the saturated Seoul market, is also increasingly keen to take its Asian funds show on the road.
“European investors are currently more interested in regional and global products, but in the next 18 to 24 months, they will feel much more comfortable allocating to single country funds,” predicts Martyn Gilbey, formerly head of wholesale business at Insight in London, now running Mirae’s distribution in Hong Kong and re-manufacturing Asian knowledge for an in international audience.
“If we get this right, it will protect and enhance the business for our Korean investors,” he says.
“We have to enter new markets and introduce the Mirae Asset name. Our main challenge is in the US and Europe.”
Iris Chen, China AMC
