Q3-2018 Swiss-Asia Communication

7th November 2018

November is already here. I don’t think I am the only one caught by surprise. Q3 has been somewhat a quiet albeit busy quarter for our Fund Platform team as we took advantage of the quiet summer months to bolster the operations team with 2 new hires in Singapore and 1 hire in Hong Kong. We are gearing up or “LOADING UP” for Q1 2019 which will be heavy in launches that have been in the incubator for a few months waiting for the right moment to hit the street. On the wealth side we have a notable arrival and unfortunately one departure.

PERFORMANCE SNAPSHOT (September 2018 YTD)

Judah Value Activist Fund continues its impressive run this year, up over 100%, maintaining its status among the world’s top activist funds. Rare Metals, Sunspur Global and Ddraig Equity Fund continue to deliver consistent YTD returns – all still holding their top spot returns for the year. TGCC and Disciplina Asia Strategy also maintain their top 10 status. Salmon Global returns with a strong September MTD of 1.72%. The Shenton Global Dividend AMC, a serial top performer is steadily powering on.

Q3 2018 (Highest to Lowest According To YTD, as of End September 2018)

From a fund flow perspective, we see that capital is being allocated to longer term investments in the PE & VC space. Our Wealth management clients are increasingly requesting for direct investments into Private deals. It seems that we are not the only ones seeing this shift in appetite. See the Bloomberg article below that brings interesting insights:

“As trade wars and rising interest rates rattle markets, investors are shifting capital. Three-quarters of the way through 2018, money flowing into private funds dedicated to credit, property and other real assets is on track to top last year. Meanwhile, hedge funds and actively managed mutual funds broadly are sliding backward even as volatility spikes in markets.” https://www.bloomberg.com/news/articles/2018-10-29/where-the-money-goes-private-capital-gets-it-hedge-funds-don-t

FUND PLATFORM DEVELOPMENTS

1. ANTHEM ASIA holds US$34.5 million first close on Anthem Asia Myanmar SME Venture Fund – 30.08.2018

Anthem Asia Myanmar SME Venture Fund is backed by the IFC, Triple Jump BV, the Netherlands-based impact-focused investment management company; and CDC Group plc, the UK-government development fund institution. The fund aims to support SME entrepreneurs scale up in challenging Southeast Asian emerging market. “Finance-first with Implied Impact” approach combines full commercial return with international ESG standards. We are proud to be a part of the venture with the Anthem team. The Fund is targeting a total of up to US$50 million of committed capital over the next 12 months. The fund will favour asset-light businesses serving primarily domestic demand in such sectors as agri-business, business & financial services, education & training, food & beverage, healthcare, logistics, and marketing communications.

Anthem Asia Myanmar SME Venture Fund is one of the few Asian funds led by women, Ms Josephine Price and Ms Genevieve Heng, two veteran private equity investors in Asian emerging markets. They created Anthem Asia in 2013 as an independent, Myanmar-focused investment and advisory group to build sustainable businesses. To date they have built a portfolio of SMEs including top F&B group Rangoon Tea House and Thalun International School, which offers affordable US-style education. For more information please visit http://anthemasia.com/

2. WHITERIDGE REAL ESTATE FUND I SP has shelved its plans to launch and will be wound up. We wish the Whiteridge team all the best for their future endeavours in the private Real Estate space.

ACTIVELY MANAGED CERTIFICATES

  1. The Football Finance Note (“FFN1”) has hit Full maturity. After two full years of successful investment, the first launch of Football Finance Note matured on 31st August 2018. All investors received a profitable exit, with early investors receiving two dividend payments and an increment in their NAV.
  2. Following two years of research by Anthony S. Casey, the Music Finance Note (“MFN”) finally came to life by listing on the SIX Swiss exchange on 21st September 2018. The only listed US$ denominated vehicle to provide access to an actively managed basket of music related securities, including global hit songs, streaming platforms and major record labels, with access to attractive IPOs in the sector. A welcome addition to client portfolios, offering an exciting theme with low correlation to the financial markets. Here is a link to the Bloomberg article announcing the launch of MFN: https://www.bloomberg.com/news/articles/2018-10-03/asia-millionaires-groove-to-disco-after-betting-on-soccer-craze?srnd=premium-europe.

Should you wish to follow the progress on MFN, you can follow the Linkedin page via the link below: https://www.linkedin.com/showcase/13191176/admin/updates/

  1. The Stallion Performance Index – closes and ceased trading on the 1st of September.

WEALTH MANAGEMENT

Singapore 

  • Siok Huey Chng  joins Swiss-Asia on the 15th of August 2018 with 22 years of Financial and Private Banking Experience. Her latest role was with Credit Suisse Private bank servicing ultra high net worth clients and previously UBS AG Private Bank , DBS and OCBC. We are very proud that Siok Huey has chosen Swiss-Asia to run her EAM business.
  • Vijuk Pa-Aporn – After 4 years with Swiss-Asia, Vijuk, has left the Company to manage his own Registered Fund Management Company. We wish him all the success in his new venture.

HUMAN RESOURCES

Hong Kong

  • Osman Shanino – Joins the operations team in Hong Kong on 1 Sep 2018

Singapore

  • Lai Tzin Yee – Joins the operations team in Singapore on 27 August 2018
  • Tan Yi Jing – Joins the Finance team in Singapore on 11 Sep 2018
  • On the departures side, Elena Kang has left the finance team on 21 Sep 2018. We wish her all the best for her future endeavours.

COMPLIANCE UPDATE

In Hong Kong, from a Compliance Perspective we are seeing a major overhaul in the Fund Manager Code of Conduct. There are literally days until the 17 November deadline to implement the changes emanating from the new code. Our compliance department is very busy fine tuning our policies and procedures and disclosures for investors – old and new alike !

Meanwhile in Singapore, we have seen a consultation on ‘cyber hygiene’ and updates on failings in AML transaction monitoring, highlighting that these remain important topics to which all licensed firms need to react and address immediately. MAS is strongly committed to taking strong regulatory actions against financial institutions and individuals who have breached laws and regulations under its purview. For many of us, we deem that this is the logical next step in the evolution of Singapore as a global financial centre.

On behalf of the Swiss-Asia Executive Management we wish you all a great Q4-2018 !!!

Steve Knabl