Wave of fund chief moves reflects fiercer fight for institutional clients
Asset management firms have undergone a wave of high-level changes in Asia in recent months, underlining the intense competition for institutional talent to help attract and retain clients in an ever-more crowded market.
The steady growth in allocations to both passive and private market investing in recent years has made things particularly tricky for active public-market strategies.
Institutional money – whether at pensions, sovereign wealth funds or insurance firms – has always been a key target for asset managers in Asia. But the recent wave of personnel changes may reflect a growing recognition that asset owner expectations in the region are higher than ever.
Two leadership changes at big fund houses have come to AsianInvestor's attention recently that reinforce this trend – particularly given both individuals’ deep experience of the Asia-Pacific asset owner segment.
Lawrence Hanson, formerly Australia chief at Fidelity International, will take over as head of sales for Asia Pacific at Robeco on November 11.
And Simon England-Brammer has left Nuveen, a $1.2 trillion US investment manager. He was head of Asia Pacific (APAC) and also senior managing director of the global client group APAC and Europe, the Middle East and Africa (EMEA).
“The competition [for institutional business in Asia] is fierce, and with smaller margins than in the past,” a senior Singapore-based recruiter told AsianInvestor on condition of anonymity.
“For institutional coverage, the bar on quality has been rising for years. Given the sophistication of the audience, it now requires a greater degree of content and insight and savviness about where you want to play.”
There are also fewer opportunities than there used to be beyond institutional clients, the recruiter added.
“From a retail and private bank distribution perspective, the market is more mature and has less room for new entrants or marginal players.”
DEEP INSTITUTIONAL EXPERTISE
At Robeco, Hanson is taking on duties previously held by Graham Elliott, who left the Dutch firm after some 12 years to join Mercer in June as Asia wealth leader to oversee the consultancy’s regional investment team. Hanson will relocate to Hong Kong from Sydney.
Hanson had been with Fidelity for 17 years, during which time his roles had included overseeing Asia-Pacific ex-Japan institutional coverage and before that Southeast Asia institutional sales. He was succeeded by Simon Glazier, Fidelity’s former Australia head of wholesale business.
Meanwhile, England-Brammer left Nuveen, the investment manager for Teachers Insurance and Annuity Association of America and other clients, in October last year.
Industry sources believe he has a new role lined up, but AsianInvestor could not ascertain where. England-Brammer declined to comment.
Nuveen’s distribution leaders and investment professionals in EMEA and APAC now report to Mike Perry, head of global client group, a spokesperson told AsianInvestor.
England-Brammer had previously overseen Invesco’s institutional coverage for Hong Kong, Korea and Southeast Asia before Nuveen hired him and two of his team in 2016 to spearhead its own regional buildout, as was first reported by AsianInvestor.
OTHER MOVES
Another recent move underlining the key importance of institutional clients in the region is Martin Franc’s appointment as CEO for Asia ex-Japan at Invesco in July.
Previously Australia CEO and head of Asia-Pacific institutional business, Franc took over following the resignation of Terry Pan as CEO for Greater China, Korea and Southeast Asia.
Franc had also managed the institutional business at Putnam Investments, an employer of his prior to Invesco. Pan’s experience had been more on the retail side.
Another US firm, MFS Investment Management, in June appointed Emily Koh as relationship director for Southeast Asia institutional sales. She moved from Wellington Management to take up the newly created role.
Meanwhile, Sandra Cheng has left her role as Singapore chief executive and Southeast Asia head of institutional business at Columbia Threadneedle.