Al Clark

Global investors’ increasing demand for multi-asset investment strategies is driving Nikko Asset Management, a related company to Tyndall Investment Management Limited, to form a specialist portfolio management team in Singapore, the company announced yesterday.

The team, which currently oversees $24 billion of assets for institutional and intermediary clients, will be launching multi-asset products as well as integrated solutions for clients around the world.

The Tokyo-based asset manager previously had multi-asset staff in separate locations, and through this move will strategically consolidate its resources in order to maximise the firm’s global multi-asset capabilities.

Nikko Asset Management aims to provide institutional-quality multi-asset products, solutions and customised advisory services to global clients, who are increasingly allocating their assets to investment opportunities around the world, while also protecting against downside risk.

“Multi-Asset is gaining a lot of attention from investors, and we are taking this action to serve growing demand across the globe,” said Yu-Ming Wang, Global Head of Investment at Nikko Asset Management. “Clients are demanding multi-asset funds as well as tailored solutions to manoeuvre through volatile markets to reach their investment targets. To meet these needs, we’ve brought together a highly specialised team in the same location to reach critical mass.

We recognise Singapore as our centre of excellence for Asia, and as a central hub we will be strengthening our investment capabilities further in this region, and elsewhere as the opportunities arise.”

Al Clark, who was appointed as Global Head of Multi-Asset in March, will lead the 18-member team. The team has an average of 20 years of experience in the financial industry. Clark himself has over 20 years of experience in trading and portfolio management, having spent the last seven years in Singapore as Head of Multi-Asset for Asia Pacific at Schroder Investment Management where he played a leading role in asset allocation decisions for the region and had management oversight of a team across Singapore, Hong Kong, Taiwan, Tokyo and Sydney.

Global investors recently have increased their searches for multi-asset products, growing by 33% in 2013, according to a Mercer LLC survey in April[1] . Meanwhile, State Street Corporation said in a separate report in June[2] that there was a limited supply of managers who could provide multi-asset solutions.

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[1] 2013 Global Manager Search Trends
[2] State Street 2014 Asset Manager Survey – “Frontline Revolution: The New Battleground for Asset Managers”

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Nikko Asset Management is a related entity of Tyndall Investment Management Limited. Drews was most recently Global Head of Key Clients and Family Offices at Barclays Wealth and Investment Management in London. She will be relocating to Tokyo later in 2014 to assume her new role.

“We feel very fortunate to have Stefanie join Nikko Asset Management as we take our institutional business to the next level,” said Hideo Abe, Executive Vice Chairman of Nikko Asset Management. “She has had a distinguished career in the investment and wealth management industry and we are very confident that her contributions will greatly improve the customer experience for institutional clients.”

Drews will be responsible for developing and managing the institutional proposition working closely with the firm’s investment, operational and distribution teams globally. She will manage institutional product, marketing and cross border specialist groups in Nikko Asset Management’s locations around the world. Her role was created in line with the firm’s strategy of increasing its business in the institutional arena.

Prior to Barclays, Drews was a Managing Director in Morgan Stanley’s Private Wealth Management business, where she ran a highly successful investment management program for institutional clients as well as high-net-worth individuals. She is a graduate of the Harvard University Graduate School of Business Administration and received a Bachelor of Arts degree from Oxford University.

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NIKKO AM launches Singapore’s first Chinese onshore bond fund.

Singapore’s first Chinese onshore bond fund* is being launched by Nikko Asset Management Asia Limited (Nikko AMAsia) in partnership with the Bank of China and DBS Bank, following Nikko AM’s one-billion Renminbi quota award for the fund as a Renminbi Qualified Foreign Institutional Investor (RQFII), the company announced today. The fund is expected to launch in Singapore in mid-July.

Nikko AM Asia is a related entity of Tyndall Investment Management Limited.

“We are elated to be pioneering the Chinese Onshore Bond Fund,” said Eleanor Seet, President of Nikko AM Asia, a subsidiary of Nikko Asset Management Co., Ltd. (Nikko AM) in Singapore. “The fund is strategically significant as a long-term proposition supporting Singapore’s role as a key offshore RMB centre. We take pride in being a forerunner in RMB internationalisation by providing Singapore domiciled investors with direct access to China onshore bonds, which are not readily accessible to foreign investors.”

“This is the first in a suite of RQFII solutions we are planning to provide. We expect allocations into this market from both local and global investors to grow, especially with a long-term positive outlook on the currency,” Seet added.

The development builds on Nikko AM’s successful track record of managing Asian bonds and credit over the last 30 years. In particular, it was one of the first fund managers to launch an offshore RMB bond fund shortly after the liberalisation of the Chinese bond market in November 2010. With a sizable presence in the market, the firm has exceptional access to new Asian bonds allocations and inventories in the secondary market.

“We are pleased to partner with Nikko AM on the Fund. While there is generally strong interest in bonds in Singapore, there are limited RQFII allocations available to offshore investors. Such bond funds will provide investors with the opportunity to participate in China’s growth and add diversification to their portfolio,” said V Arivazhagan, Managing Director & Head, Regional Investment & Treasury Products, Consumer Banking Group, DBS Bank.

Wang Lei, Assistant General Manager, Bank of China Singapore Branch, opined, “Bank of China is honoured to be one of the first banks in Singapore to distribute the inaugural RQFII fund to be launched here, and to have played a crucial role in Nikko AM obtaining the RQFII quota and status approval. We are one of the largest custodian banks in China, and the winner of the Custody Specialist Award for RQFII Custodian in The Asset Triple A Asset Servicing Awards 2014. This milestone collaboration with Nikko AM in Singapore taps on our strong foothold in China and further reinforces our position as the leading provider of RMB wealth management products in Singapore.”

The Fund, subject to regulatory approval, is designed for retail investors in Singapore seeking a total return of capital growth and income over the medium to long term through exposure to RMB and listed and unlisted RMB denominated fixed income instruments.

Investors in Singapore can invest in RMB through the Bank of China and DBS Bank when the fund becomes available in mid-July.

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Abenomics Wealth Effect’ has started to play a key role in Japan’s economy: Nikko AM

The latest research from Nikko Asset Management (Nikko AM), a related company to Tyndall Investment Management Limited (Tyndall AM) shows that Abenomics is exceeding its targets and consensus expectations on the road to reform.

Prime Minister Shinzo Abe’s ‘Three Arrows’ policy, dubbed by Nikko AM as ‘Super-Abenomics’, is providing a clear boost to Japan’s household finances.

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Tyndall and Ignis form strategic alliance.

Tyndall Investment Management Limited (Tyndall AM) and UK-based Ignis Asset Management (Ignis) have announced a strategic alliance in Australia.

Under the terms of the agreement, Ignis will sub-advise new absolute return debt product and liability management strategies exclusively with Tyndall AM into the institutional market in Australia.

Ignis is a wholly owned subsidiary of Phoenix Group and has approximately A$110.8 billion1 of total assets under management. Ignis has a long and successful history of managing life insurance and pension fund assets on behalf of its parent company, Phoenix Group, the UK’s largest closed life and pension fund consolidator. Ignis also has significant third party operations in the UK and Europe. Building a truly global business is a key objective for Ignis.

Tyndall AM is part of Nikko AM, a leading independent fund manager in Asia headquartered in Japan, and the arrangement with Ignis follows the announcement last that Nikko AM has acquired Treasury Asia Asset Management (TAAM) from Treasury Group, with Tyndall AM to handle distribution of its Asian equity strategies in Australia.

The addition of Ignis’ investment strategies to Tyndall AM’s current capabilities, including Australian equities, Australian and international fixed income and credit, alternative assets and multi-manager funds, as well as the recent Nikko AM acquisition of TAAM, means that Tyndall AM will now offer a broader range of both domestic and international offerings to Australian investors.

Initially, Tyndall AM will offer Ignis’ Absolute Return Government Bond strategy and Liability Driven Investment (LDI) solutions to institutional investors. Tyndall AM may also consider other Ignis investment strategies, such as emerging market debt, as part of its multi-manager and World Series Fundä platform offerings in future.

The agreement with Tyndall AM is Ignis’ first such venture outside of the UK and Europe and represents a significant step in the continued development of its operations globally.

Allan MacLeod, Head of Global Accounts at Ignis, commented: “At US$1.6 trillion2, the Australian pension market is the fourth largest in the world due to the compulsory superannuation savings requirement and is an attractive market for Ignis where our expertise and strong heritage in managing life insurance and pension fund accounts is especially well suited.

“The numerous initial meetings we have had with prospective investors in Australia have helped to reaffirm the region as a key strategic objective for us. We felt that working with a strong local partner was the most attractive way of accessing it.

“We look forward to working with Tyndall AM, one of the most respected investment managers in Australia. Its deep understanding of the requirements of local institutions, including insurance companies, and considered approach to client service makes it a natural partner for us,” Mr MacLeod said.

Mike Davis, Managing Director of Tyndall AM, said: “A strategic alliance with Ignis Asset Management is a good fit for Tyndall AM. Ignis is a forward thinking and progressive business with a strong product range and a rich insurance asset management heritage in the UK and Europe.

“This strategic alliance with Ignis further complements our objective to add local and international product solutions to meet the demand we are seeing from our client base.

“Initially, Ignis has chosen to focus its offering in the Australian market around its core strengths in fixed income absolute return and LDI, disciplines in which Ignis takes an innovative approach and has a strong track record.

“Consequently, in addition to our own strong offerings in a range of asset classes, we can now add international investment strategies that we believe will be attractive to local institutions,” Mr Davis said.

The Ignis strategies to be distributed in Australia are:

Ignis Absolute Return Government Bond Strategy

The Ignis Absolute Return Government Bond Strategy seeks to achieve its returns by translating macroeconomic views into carefully diversified long and short positions predominantly in the most liquid government bonds and currencies. Underlying investments are split into seven diversified sources of alpha that are carefully blended to provide a low correlation with other assets in order to deliver positive returns regardless of market conditions.

Since its launch in Europe and the UK on 31 March 2011, the A$2.6 billion3 fund has delivered a total return of 18.5 percent4 and an annualised return of 7 percent4 net of fees. Most importantly, the fund has achieved these returns with a very low level of risk. The fund has achieved its return with a standard deviation of 3.3 percent4 and an information ratio of 1.964. The fund’s consistent track record of meeting or exceeding its performance objectives has made it one of the most popular absolute return funds with UK and European institutions.

Liability Driven Investment

Ignis is the UK’s third5 largest manager of “with profits” funds and is the UK’s fifth5 largest manager of annuity assets and has extensive experience of managing assets alongside liabilities. Ignis manages approximately A$45.5 billion6 of assets against liability benchmarks.

Ignis’ scale as a major fixed income manager (approximately A$82.8 billion1 of total fixed income assets under management) and its history of managing assets against life and pensions liabilities ensures it has developed systems to give it the precision, control and flexibility to manage assets effectively against a range of benchmarks. Ignis’ pragmatic and tailored approach aims to provide closer matching, greater efficiency and cost transparency for insurance companies and pension schemes.

Ignis Absolute Return Emerging Market Debt Strategy

Ignis manages approximately A$725 million3 of emerging market debt (EMD) assets and has developed an EMD absolute return strategy designed to maximise risk-adjusted returns by investing in emerging market fixed interest securities, foreign exchange and financial derivative instruments. The strategy has been successfully run for an institutional client in the UK since January 2012 and a Luxembourg-based UCITS IV fund, based on the strategy, is being prepared for launch in November 2013 – subject to regulatory approval.

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