Editorial Board Spotlight: Candid Q&A with Carol Mo
Carol Mo is the deputy chief investment officer of Chow Tai Fook Life Insurance Company (CTF Life). She joined in October 2022, after a previous stint of nearly five years until May 2020.
CTF Life is the insurance arm of Hong Kong conglomerate Chow Tai Fook Group.
CTF Life
As deputy CIO, she oversees a 15-member investment team that manages about $10 billion in assets under management.
Mo, who has more than 15 years of experience in Hong Kong’s insurance industry, previously worked for BOC Life and China Life Insurance Overseas in senior roles.
She is a member of AsianInvestor's Editorial Advisory Board.
In the first of a two-part series, the investment executive talks about her hobbies, leadership style and the most unconventional piece of advice she ever received.
What does a typical morning look like? What’s the first thing you do? Do you have any rituals?
I begin each morning by looking at the performance of key indices/interest rates overnight.
Following this, I listen to news podcasts to stay informed about the latest developments overnight in the US and Europe so that I can make continuous adjustments to our investment strategy, whether it is for short-term tactical trades or long-term positioning and from asset allocation to stock picking.
During my commute to work, I prioritise my tasks for the day and strategise discussions with colleagues, ensuring that progress is made across various areas of work our projects.
While I wouldn’t call it rituals, I do have a habit of engaging in a 45-min meditation session before bed that helps me process my thoughts and unwind my mind and body after a busy day.
What's the most unconventional piece of advice you've ever received that actually worked?
One of the mentors in my career once advised me to seek out the good in every bad situation.
This guidance has been invaluable during challenging times and when dealing with difficult individuals.
I strive to identify at least one constructive element in seemingly negative circumstances and to recognise a strength in challenging personalities.
By consciously practicing this, I can cultivate resilience in the face of adversity, which in turn enhances my ability to navigate complex interpersonal dynamics effectively.
Do you have any hobbies/play any sports?
Hah! My hobbies may scare you.
Other than regular sports I play to stay fit, I’m really into cooking and experimenting how chemistry and biology behind cooking helps to excel my cooking.
For example, I read research papers to understand how different proteins work in bread-making, which helps me create the perfect texture.
In fact, I love traveling the world to bake and catch operas, too.
To be exact, my passion lies in fermentation. I basically ferment everything that can be fermented. I guess you could call me a food nerd!
And it’s pretty eco-friendly since I make a lot of things myself, reducing packaging waste.
Describe a time when your company had to adapt quickly to a changing market condition. How did you navigate it?
The capital markets are continually evolving.
Our primary objective is to safeguard our client’s insurance assets while maintaining a strong capital position for the company.
On top of it, we strive for good investment returns.
We are not here to bet where the wind will blow tomorrow. What we try is to do whatever we can to be able to navigate through different situations.
Within the company, we develop plans for a range of scenarios, eg., the potential outcomes of the US presidential elections, whether the upcoming policy will meet expectations, whether interest rate will cut 25 or 50 basis points, whether the upcoming company earnings meet expectations or not, etc.
Efficient communication among different stakeholders in the company is crucial to our success in adapting to the ever-changing market landscape.
How do you stay informed and adapt to rapidly evolving financial regulations?
I do this by keeping my eyes and ears open and actively engaging with various knowledge-sharing and social groups.
With nearly 20 years of experience in the insurance industry – spanning roles from sell-side equity research to alternative specialist and further to multi-asset allocator – I have established strong connections with professionals in accounting, law and actuarial fields.
My organisation, CTF Life, also fosters a community of these experts, providing me with constant opportunities to exchange ideas and discuss trends, which helps me stay ahead of industry trends.
Additionally, the internet is a treasure trove of information these days.
I read consultation papers from regulators, the Big Four, international associations like the ISSB, which allows me to deep dive into the development of new regulations and stay ahead of the curve.
What do you think will be the biggest challenge for asset managers in the next decade?
We witnessed strong rallies in US and Europe equities as well as interest rate hike over the past five years, as a result of post-pandemic recovery.
I would say the biggest challenge for asset managers, and for insurance companies in particular, will be navigating the normalisation of interest rates and asset valuations.
We are facing many changes in the world, in the capital market and in our own industry. Decarbonisation is the world’s agenda.
To achieve decarbonisation, asset managers have to work out a plan to decarbonise their investment portfolios, while managing transition risk, and avoiding excessive costs in the process.
We are just at the beginning of the journey. The ability to liaise resources internally and externally (with external investment managers and service providers) is crucial in order to navigate these challenges.
This is on top of the heightened volatility of capital markets, driven by higher market efficiency, artificial intelligence and machine learning and increasingly free flow of capital.
This challenges the traditional decision-making framework of asset managers, in particular long-term investors such as insurance companies like us.
What personal attributes do you look for when hiring for your team?
I would like to quote Warren Buffett: “Three qualities: integrity, intelligence, and energy. And if they don’t have the first, the other two will kill you”. I couldn’t agree more!
I also value teamwork and adaptability when hiring for our investment team at CTF Life.
We manage over $10 billion in assets across various asset types, each requiring unique technical skill sets.
Given the direct impact these assets have on the company’s earnings and solvency, having a strong, collaborative team is essential.
Plus, we're navigating a highly regulated environment and a rapidly changing capital market, so the ability to adapt quickly and work effectively with diverse professionals is crucial for success.
What is the most significant way in which your leadership style has evolved over your career?
I hold a background in programming, and I started my career as a research analyst.
My early experience was very technical, focused on rule-based methodologies where tasks were driven by precise calculations and models.
Mongolia early in her career.
The temperature was -40C.
I was accustomed to asking specific questions and receiving clear, direct instructions in the early years of my career.
Over the past 12 years, I have made a significant transition into leadership, and currently I manage a team of 15 high-calibre investment professionals.
Throughout this journey, my leadership style has evolved. I have shifted towards emphasising the processes my team members utilise to complete their tasks.
I believe in recognising outcomes – both the wins and the setbacks—as a collective effort, while also appreciating individual contributions.
I value open communication with my team, regularly checking in to understand their satisfaction and address any concerns.
This approach allows me to make timely adjustments to our work environment, leading to continuous improvement.
If you could instantly become an expert in one random skill, what would it be?
I wish I could play all musical instruments like a pro. I enjoy playing music but it takes a long time to learn one instrument and excel at it
With my current schedule, I can only manage to learn two musical instruments to a decent level. So, being able to effortlessly play any instrument would be a dream come true!