Natixis Global Asset Management sets up shop in Hong Kong
01 November 2012
News, Asia, Hong Kong
By Asia Asset Management
Natixis Global Asset Management (NGAM) has announced the launch of its office in Hong Kong, the firm’s fifth in Asia Pacific.
John Hailer, president and CEO, the Americas and Asia, said: “Our new office will enable us to bring our unique Durable Portfolio Construction to individual retail, high-net-worth and institutional investors in Hong Kong, offering a diverse range of products through what has proven to be an enduring and flexible global multi-affiliate model.
“At Natixis we are attracted to markets where there is a concentration of wealth and education, and from our recent survey of investors as well as our own market research, the timing for us is ideal. We are dedicated to long-term sustainable value creation and have a strong belief in real diversification in any market conditions – diversification by investment manager, investment category, distribution channel and geography. With this approach we are confident of building a successful business in Hong Kong.”
Natixis, which manages US$710 billion AUM globally (as of end Q2 2012) and employs over 3000 people around the world, first established a distribution presence in Asia in Tokyo in 2001 and now has offices in Singapore, Taipei and Beijing, employing over 50 people in the region. The region has been one of the firm’s fastest-growing global markets. Asia AUM has grown 66% in the last two years up to $22.7 billion (as of end Q1 2012). Japan alone grew 32% over that period.
Mr. Hailer added: “We experienced our strongest period of growth globally over the past decade. While most of the asset management industry was experiencing net outflows during the market crisis, NGAM remained in positive flows. While others were contracting in 2008 and 2009, we were growing, adding net new jobs globally and expanding in Japan and throughout Asia, the Middle East, UK and Europe. Since October 2007, the MSCI World Index remains down 30% whereas our assets have increased 30%.”
The Natixis approach to portfolio construction is based on a unique investment philosophy called Durable Portfolio Construction, which recognises that investors wish to combine a desire for returns with a renewed emphasis on seeking protection of their assets. Investors need support in all markets and the ability to generate sufficient returns at appropriate levels of risk. Durable Portfolio Construction moves beyond traditional portfolio construction techniques to pursue smarter strategies for navigating complex markets, while building a solid foundation for achieving long-term goals. By making risk the primary consideration for asset allocation and enhancing diversification through alternative investments and smarter use of traditional asset classes, investors can minimise the impact of extreme market movements, stay invested and meet their objectives in up and down markets.
Michael Chang, managing director of NGAM Hong Kong Limited, commented: “There are five keys to building a durable portfolio: put risk first, maximise diversification, use alternatives, make smarter use of traditional asset classes and be consistent. Our model helps investors do that, and individual investors are now looking to follow the suit of institutional investors in this way of thinking. It is an exciting time to bring our philosophy to Hong Kong.”
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