Best of 2015: Asia Pacific Markets for Global Investors
Though global trade was growing at its slowest pace since 2009, East Asia remained one of the main growth drivers of the world economy. Over the last year we continued bringing you updates on industry developments in the Asia Pacific region, as well as insights from thought leaders from both the industry and academia. Below is a selection from the pool of content that we produced in 2015.
1. Investment Skills for Investors in Asia and around the World
We always focus on highlighting theoretical developments that practitioners can benefit from and below is one example. When I first met Andrew Karolyi a year ago, what intrigued me about his research was not only its academic rigor but also its huge potential in helping practitioners tackle real world issues.
We have written extensively on the subject, here and in trade publications, and found two important applications this year alone: MSCI’s decision not to include China A shares in its emerging market index, and IMF’s decision to accept RMB into the SDR currency basket. (More on the latter later.)
We also dedicated six blog posts to the topic of mutlti-asset strategies. An industry survey indicated two-thirds of asset managers around the world consider this to be the strategy that will drive growth (vs. 17%, who voted for traditional actively managed equity, the second most popular choice). The product’s importance to investors is obvious, given where most of our retirement money is invested. The mutlti-asset strategies series is largely based on a number of panels I moderated at industry events in the region at which panelists hailed from some of the largest and smartest asset owners, as well as interviews I conducted with Myron Scholes, the Nobel laureate of Black-Scholes fame, and Jason Hsu of Research Affiliates.
- “Multi-Asset Strategies: A Primer.”
- “Three Key Decisions in Formulating an Asset Allocation Strategy”
- “An Advance in Portfolio Construction”
- “Portfolio Evaluation: Benchmarking for Success.”
- “Myron Scholes on the Challenges the Investment Management Industry Faces.”
- “To Rebalance or Not to Rebalance.”
And we never miss a single opportunity to write about Warren Buffet’s investment wisdom, especially not when he opened his secret recipe book in Berkshire Hathaway’s 50th Anniversary Annual Report. I was also invited by HKSFA to speak on the topic.
2. Market Development and Industry Trends in the Asia Pacific Region
A sign of the Asia Pacific region’s increasing importance was, unfortunately, how turbulence in the Chinese stock market last summer rippled across global financial markets. Given our members’ superior understanding of this issue, we thought no one could address this issue better than Robert Engle, who is the authority on market volatility. Better yet, his Volatility Institute had actually set up shop in China to study the local markets, so he actually had much original insights to share that actually originated from his work in the region. We hosted a dialogue with Engle on the subject in Shanghai last month and broadcast the event live to our members in Beijing, Chengdu, Dalian, Hangzhou, Mumbai, Shenzhen, and Singapore. You can watch the recording below.
As discussed above, development of market institutions is critical for an emerging market to eventually graduate into the more “developed” world. There have been many related developments in the region this year: RMB’s acceptance into the SDR, signing of the TPP, mutual recognition of funds between China and Hong Kong, just to name a few. Below are some of our writings on these subjects.
- “Understanding the TPP: Recommended Reading“
- “Trans-Pacific Partnership: Brave New World or Geopolitical Maneuver?“
- “RMB Inclusion into the SDR a Big Deal“
- “RMB Joins the Elite Club“
- “Weekend Reads from China: The RMB in the SDR — What It Means for China“
As a service to our members, President and CEO Paul Smith facilitated a panel of senior industry professionals and discussed career-impacting investment industry trends. A few hundred members with HKSFA and CFA Phillipines, Thailand, and Singapore participated either live or online.
- “Investment Management Industry Trends and Career Impact” (video)
- The event was held last spring and, when I wrote about it last month, I thought many of the predictions had come true.
For readers who actively follow the developments in China and India, we will continue to keep an eye on the major issues for you as well. Below are two examples.
We look forward to continue serving you with a healthy dose of Asia Pacific content in the coming year. Do please leave your comments below and let us know how we are doing. We also welcome your thoughts on subjects you’d like to us to start talking about or provide more coverage of. Thank you for reading, and here’s us wishing you a happy Year of the Monkey!
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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.