Asia: The Multi-Asset Class Opportunity Set – With Partners Capital & Singapore Management University (Money Maze Podcast)

The conversation brings together Arjun Raghavan, CEO of Partners Capital, Adam Watson, Partner and Co-Head of Asia Pacific, and to understand the perspective of a seasoned investor and allocator, Harvey Toor, CIO of Singapore Management University (SMU). SMU is a current client of Partners Capital and seed investor in one of its pooled investment portfolios.

NOTE: SMU is a university in Singapore that seems to take a certain percentage of students from various countries in the ASEAN region e.g. Myanmar, etc.

Worth listening too. Asia: The Multi-Asset Class Opportunity Set – With Partners Capital & Singapore Management University (Money Maze Podcast) 43 minutes

Some key points:

Asia is an under 10% investment allocation b/c its hard to invest and difficult to get right. Easier to allocate funds elsewhere where less work is required. However:
1. America-Europe monetary-fiscal policy rise is very synchronized and assets move together. There is a need to find non-correlated assets.
2. Cheaper valuations in Asia.
3. There is now a deep talent pool of asset managers.
SMU – the opportunity is not just in China, but in India, several ASEAN countries, etc. SMU does not have the capabilities to dig deeper into all these markets.
Need to ask: What does an Asian exposure look like from an asset allocation perspective?
North Asia more corelated to the USA vs. South Asia/India/SEAsia.
Three things needed for a good investment environment:
- Good entrepreneurial businesses.
- People creating value in the real economy and good investment talent who can identify good businesses.
- Good set of instruments to trade + openness of markets.
Want to access the best Vietnam assets, you must overpay for them. Private placements make more sense here.
Local asset managers want to see your reaction e.g. when markets are going down like now, etc. You also need them to understand local legal jurisdictions.
Traditional asset management (e.g. 30% into bonds) does not work in Asia. The markets are too fast moving and unique opportunities pop up.
Japan was also discussed and how global inflation may have jumpstarted the local economy.
FX – must consider in get-go e.g. hedging costs.

TOPICS:

0:00 – Introduction
1:02 – Partners Capital Overview
2:34 – Asia Under-Allocation
6:11 – Historic Context
9:30 – SMU Endowment Overview
12:09 – SMU Investing Strategy
17:00 – Regional Differences
19:53 – Hedge Fund Allocation
23:08 – Capital Market Access
27:24 – Public V Private Markets
30:04 – Index Investing in Asia
32:01 – Measuring Performance
35:58 – Japan Case Study
38:18 – Currency Considerations
41:27 – Concluding Thoughts

Source: Asia: The Multi-Asset Class Opportunity Set – With Partners Capital & Singapore Management University

Asia: The Multi-Asset Class Opportunity Set – With Partners Capital & Singapore Management University (Money Maze Podcast)

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