Q4 – 2016 Swiss-Asia Update

12th January 2017

I’d like to offer a good cheer for 2016 and look forward to 2017 that will be full of new challenges and business perspectives for Swiss-Asia.

You will never believe it, but Q4-2016 was a busy year end for us as we launched three new funds in November while managing a few staff arrivals and departures. In Hong Kong, we also held our first Capital Introduction and second Fundies events. Both were a huge success and we are determined to repeat them this year. Stay tuned!

FUND PLATFORM

AVM GLOBAL OPPORTUNITY FUND is an actively managed portfolio of liquid assets and securities in fixed income, equities, commodities and currencies. Using a top-down approach to identify opportunities where market expectations are out of line with economic fundamentals, it has the flexibility to choose the right asset class and exploit imbalances. Fund Manager Ashvin Murthy has 10 years’ experience in the financial services sector. Starting his career as a Fixed Income Structurer at UBS, he then moved to London as an FX and Interest Rates Hybrids Trader and amassed extensive knowledge in macro-trading. Ashvin also went on to UBS Zurich as an Emerging Markets FX Options Trader where he was responsible for market making and risk management of all Asian FX options. Prior to joining Swiss Asia to launch his fund, Ashvin was the Head of Asia Pacific FX Options in Natixis, where he was instrumental in growing the commercial footprint in the region.

DDRAIG EQUITY FUND is designed to outperform the MSCI World Net Total Return Index. The fund enhances returns from its core equity investments by employing a market-neutral relative value strategy, receiving income from a covered-call option strategy against the core equity holdings, and invests in protection hedging against steep market declines. The Fund Managers are Chris Jones and Peter McDermott. Chris Jones has managed absolute return and enhanced equity hedge fund assets since 2004, prior to which he has served as both a long-only fund manager on the buy-side with Hill Samuel Asset Management, and a research analyst on the sell-side of the industry with Citigroup. Since 2006, he has headed up two successful hedge fund management teams. Based out of Singapore, both teams were nominated for the Asian Multi-Strategy Fund of the Year by AsiaHedge. His experience also includes establishing and running the Asia office of Concordia Advisors and later on as Head of Asian Multi-strategy Equities for Henderson Global Investors. Peter McDermott is a derivatives specialist since 1986. His experience runs from being an options market-maker on the London International Financial Futures Exchange (LIFFE) through to risk management and product development. He brings a strong risk control focus to the entire investment process.

HERITAGE FUND aims to purchase deeply undervalued securities that will appreciate as a result of positive developments that have yet to be priced in. Its focus relies heavily on risk control to achieve superior returns. The research process is driven by a fusion of fundamental analysis, quantitative data and behavioural insights. At the heart of the investment framework is a thorough understanding of the capital cycle. This dictates that high returns will attract capital inflows, thereby destroying returns, and vice versa. The research involves assessing how management and insiders respond to such challenges, and their alignment of interest. The Fund Managers are Tay Jun Hao and Xavier See. Tay Jun Hao has over five years’ experience in the financial markets He is a frequent guest speaker at the University College London (UCL), London School of Economics (LSE), and various investment conferences held in Singapore. Jun Hao graduated with a Bachelor of Laws (Honours) degree from University College London (UCL), one of the world’s leading law schools. Xavier See has a wealth of industry experience. Previous roles include serving as the Chief Executive Officer of PT. Permukaan Tritunggal Indonesia, a construction material manufacturing and supply company based in Jakarta, and the Executive Director of DWJ Group based in Guangdong, China.

SHANTI INDIASEAN has been re-domiciled to a Luxembourg UCITS fund. Swiss-Asia is in the process of being appointed as Sub-Investment Manager to the fund.

On the negative side of things, we are sad to announce that the LUMINANCE FUND has unfortunately discontinued operations. All money is in the process of being redeemed to investors and the fund liquidated in the course of 2017.

FINTECH @ SWISS-ASIA

Risk Management reporting for Funds: After 18 months of extensive industry research, we have concluded that the large majority of Risk Management software offered by diverse service providers do not allow us to view and evaluate risk for our hedge fund portfolios in a pragmatic and realistic manner. Most, if not all solutions, are based on legacy technology, not easily customizable to suit our specific needs, not scalable, requires heavy intervention to add a portfolios and most of all, very over priced. Based on this dire conclusion, we have developed our own Risk Management reporting system. Opposite of what is mentioned above, we can now produce on-demand comprehensive risk reports in less than five minutes.

Research and Advisory Mobile App: To better distribute our in-house Research and Advisory, we are taking a bold step into the new technologies space with an interactive mobile app. Rather than distributing the material via e-mail, the app will provide managers, employees and clients with the latest market insights. Stay tuned for the release of this elegant piece of software. Release of phase 1 is coming very soon.

ARRIVALS AND DEPARTURES

Rahul Dubey – Spearheading Capital Introduction and Investor Relations (1st November 2017). Rahul is responsible for organising Capital Introduction events and seeking new investors for the platform’s funds.

Louis Low – Joined the Finance Department (15th November 2017).

Sophia Tang – Joined the PruLev Fund as Analyst (1st January 2017).

Kasia Suzor has resigned from the FFN role on 1st October 2016.

Jared Sim has resigned from Marketing and his last day was 16th December 2016.

Brahanya Udhayakumar has resigned and her last day is 31st January 2017. After seven years with Swiss-Asia, she has decided to move to a boutique bank.

With more exciting announcements ahead with new strong additions to the platform in Q1-2017, we wish all a great start to 2017 and a prosperous, healthy year of the Rooster!

Steve Knabl