Sanjay Natarajan

Join us to explore some of the key challenges Asian allocators are facing in today's dynamic market. In this episode of Critical Thinking LIVE from the Global Investment Forum in Hong Kong, Michael Lernihan, Adeline Tan, and Garvan McCarthy discuss how to build agile portfolios that can weather economic storms and capitalize on emerging trends. Listen to the full podcast conversation: https://lnkd.in/g8iGtRUM #MercerGIF #Asia #investing

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“Factors are the language of portfolios and allow silos and asset classes to talk to each other.” Andrew Ang waxing poetic on the advantages of a factor approach vs strategic asset allocation and the importance of thinking at the holistic portfolio level when allocating capital. Thanks William J. Kelly, CAIA for another enlightening conversation.

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I would like to discuss the issues on the March 7 Nikkei article, "Two Major Asset Management Companies Oppose Appointment of 'CEO' for Companies with P/Bs Below 1x."

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For those who are thinking about inheritances before passing away, this article is worth a read.

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During my chat with Bloomberg last week, Jamie Dimon's latest economic views were played on a recorded interview. I share his view that the probability of a hard landing is too heavily discounted. In this segment, I discuss the possibility that there could easily be twice as many cuts from the Fed as is currently priced to the end of 2025, what the inverted yield curve is trying to say, and where the low-hanging fruit in fixed income currently lies.

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🥇What Did Fion Say? It was in May 2022 that Fion Yu shared how the charts used in the New Light UT/ILP Investment Sales Master Class could be used to explain Dollar Cost Averaging (Regular Premium). The occasion was the delivery of the Master Class to Director Judy Ng’s team (representing Great Eastern Singapore). The girl of the moment was Fion Yu. What did Fion say ? Fion said that when customers invest via dollar cost averaging the holding period also matters. New Light research shows that for a 1 yr holding period Singapore equities (STI Index) have a 38% change of delivering negative total returns. If the holding period is 3 years the chance of losses is 26%. This implies that if a customer were to make 12 monthly investments and hold them for one year, 4-5 of the monthly investments could generate losses (12 x 0.38 =4.56). If the holding period is 3 years approximately 3 (12 x 0.26 =3.12) of the monthly investments could generate losses. We can also see that the magnitude of losses for each holding period and this decreases with time. The fact that holding period is a very important determinant of success in a dollar cost averaging programme has tremendous implications for both financial advisors and their customers. For her contribution to the knowledge of financial planning, Fion Yu is awarded the title of Champion of the Master Class. More than a 1000 financial advisors who have attended the Master Class after her have benefitted from Fion’s sharing and we are grateful to her for this. #LookingAtInvestingInANewLight #InvestingCanBeEasy #LBFalumni #SkyHighTower

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Weathering change in Asia The prospect of falling US interest rates and the upswing in demand for semiconductors and electronics more broadly are currently operating as very supportive factors for parts of the Asian economy and for many local equity markets. In that vein, in the coming week, we expect the Federal Reserve to leave interest rates unchanged but to acknowledge the improvement in US inflation that may open the door for lower interest rates at the end of the summer. Read more in our latest “The Week Ahead” by @@Allianz Global Investors #TheWeekAhead #asia #China #India #Taiwan #semiconductors #markets #investments #USelection #tariffs

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If you are considering ex-U.S. investment opportunities, the below webinar next week should be of value.

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Volatile markets of the past remind investors why it’s crucial to take stock of hidden risks in their portfolios. PGIM Wadhwani’s Apostolos Katsaris joined The Outthinking Investor to discuss how taking a holistic view of diversification can unlock opportunities in uncertain times. Listen to the latest episode here: https://on.pru/3xFx2ip

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With yields in most fixed income sectors at levels rarely seen in the last 20 years, learn why we believe it represents an attractive opportunity for long-term investors→ https://bit.ly/3UNi15Z

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With yields in most fixed income sectors at levels rarely seen in the last 20 years, learn why we believe it represents an attractive opportunity for long-term investors→ https://bit.ly/3UZSqIy

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Some interesting and important points in this paper. Well worth a look as things are moving quickly.

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In a typical first-loss structure, the Manager contributes personal capital of 10% of the allocation—the first-loss tranche—which absorbs any initial losses before affecting the investor’s senior tranche. This alignment ensures that the Manager is highly motivated to avoid early losses. https://lnkd.in/ggdv5DGR #familyoffices #seedcapital #esg #investing #diversityandinclusion #hedgefunds #privateequity #emergingmanagers

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This past week I was fortunate to be able to share my views on Vietnam and our funds with Jonathan Davis on his Weekly Investment Trusts Podcast. I thoroughly enjoyed our conversation and thank Jonathan for his experienced and respected views on the investment trust sector. #vietnam #assetmanagement #investmenttrusts #lseg

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After a stellar first quarter for global markets, investor sentiment turned more cautious in April, sparking a sell off in global equity markets. Amid the pullback we think new opportunities have emerged, most notably Japan. In our view, Japan’s emergence from decades of deflation brings a generational opportunity to invest in Japanese assets. In our latest #AsiaStrategyFocus, we delve into the unfolding themes and highlight sector-specific investment ideas within Japan. https://bit.ly/4aZhaGk

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Between a rock and a hard place: HKEX's balancing act Hong Kong's capital markets remain an attractive place for PRC companies to raise funds from international investors, including through IPOs. Recent indicators and client requests suggest that after a somewhat slower period, interest in and demand for HK IPOs are picking up. Underwriters and potential issuers will likely remain cautious until after the US elections. However, as the US-China geo-political and geo-economic relationships are expected to remain tenuous, PRC companies and investors are exploring options beyond western capital. The HK IPO process can thus serve as an important indicator of how the financial sector and other market participants address the existing and future US-China conflict of laws, particularly around international sanctions and PRC countermeasures. Despite being stuck between a rock and a hard place, the HKEX has been able to strike a creative – albeit some might say, timid – balance between international banks' commitment to sanctions compliance and domestic rules. 1. Sanctions opinion This balancing act relies on the requirement for potential issuers to provide a sanctions memo from a qualified counsel. We have supported a number of recent successful IPOs and pending processes. We can therefore attest that HKEX takes this sanctions clearance very carefully – often through a number of detailed follow up queries and clarifications – before the disclosure terms are finalized. A legal opinion must address whether business activities within the track record period (3 years): (i) are subject to or may have violated any sanctions and export controls laws in applicable jurisdictions; and (ii) will result in any material sanctions risks to itself or other stock exchanges. Dealings in high-risk countries like Iran and Russia should therefore be carefully reviewed and sanctions risks should be efficiently mitigated. 2. Sanctions compliance The legal opinion is a "live" document and delays in listing will require the analysis to capture an updated track record period. This requires an applicant to continuously comply with ever-changing sanctions regimes. Indeed, the HKEX recommends all applicants monitor their business for exposure to sanctions risks during and after their listings. While international sanctions compliance might not always be a top priority, any company with HK IPO aspirations would be well-advised to enhance its sanctions compliance early to save legal fees and IPO delays. 3. Collaboration with regulators Listing applicants should also be ready to answer questions from the regulator and be flexible when circumstances change – eg SenseTime, a facial recognition developer, removed US investors from its IPO after being added to the CMIC List. Our sanctions and our IPO teams are happy to address any questions – Frank Bi, Li Jiang, Tom Cummins, Dr. Dr. Claus Zimmermann, Vicki Tang, Kenneth Lee

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Always enjoy spending time with my friend and our CIO, Richard Madigan. With equity markets at their highs, his insights on navigating election cycles, China's stimulus, and rising geopolitical tensions are especially valuable. The link for the full video is below. Enjoy! https://bit.ly/4dRCput

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Join us to explore some of the key challenges Asian allocators are facing in today's dynamic market. In this episode of Critical Thinking LIVE from the Global Investment Forum in Hong Kong I join my colleagues Michael Lernihan, Adeline Tan to discuss how to build agile portfolios that can weather economic storms and capitalize on emerging trends. Listen to the full podcast conversation: https://lnkd.in/eX3BSAbV #MercerGIF #Asia #investing

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