Asia investments

Asset Managers Flock to Singapore and Asia

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The recent capital flow to Asia is pushing leading asset managers to hire analysts and bond traders in the region.

BlackRock Inc., for example, has made Singapore its home base for trading regional debt and currencies. Manulife Asset Management, Aberdeen Asset Management and Western Asset Management have also made plans to expand their staff and focus in the region.

BlackRock Asia-Pacific chairman Mark McCombe explained:

“Quite recently, our Asian fixed-income capability was quite underdeveloped and so the decision was made to try to build a world-class capability. The regulatory framework, the living and working environment as well as the kind of rich base of investors make Singapore a very attractive place to do business.”

 

Intel Capital Invests in 10 Asian Companies

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Intel Capital recently announced its $40 million worth of investments in ten Asian companies. The investments include eight in companies from China, India, Japan and South Korea, as well as two planned in Taiwan.

“Technology adoption and innovation is an accelerating global phenomenon, and Asian entrepreneurs from both mature and emerging markets are on the cutting edge of this trend,” said Intel Capital president Arvind Sodhani. “These ten companies offer unique technology- from remote security solutions to interactive cloud-based services- that enhances productivity, security and the online experience for consumers and businesses around the world.”

The investments were announced at the 12th annual Intel Capital Global Summit in Huntington Beach, California. The summit, formerly known as the CEO Summit, hosts more than 900 portfolio company CEOs each year, as well as corporate technology decision makers and industry leaders from across the globe.

 

Cutting the Asia Fund Investments

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In recent financial news, Gottex Fund Management Holdings Ltd., just cut in half its Asia fund investments to improve returns.  While last year, it’s Asia fund had 45 holdings, this year it is expected to have only 22, as reported by Co-Founder Max Gottschalk.

The Switzerland-based company invests $400 million in 38 Asia-focused funds, and the numbers are likely to drop to 30 now.

As Gottschalk explained, "When investors are looking to invest in Asia, they're looking for punchier returns. Funds of funds are earning part of their keeps by providing access to some of the younger, emerging managers or smaller managers."

Gottex isn’t alone in the shift that it’s making.  They are joining companies like Pictet & Cie to shift to have newer, lesser-known managers to boost their returns.  Gottex’s plan at the moment is to change about 20% of the Asia hedge funds it invests in each year, up from 15%.

As Gottschalk explained, "There's a perception that the Asia market, due to its increased risks, should generate higher performance. Also there's no doubt that Asia, and the Chinese economy in particular, are drivers of global growth."