Towards a Sustainable Prosperity in Asia - the Investment Challenges Ahead
The ABFER/CAMRI roundtable will examine the challenges ahead for Asian economies and the investment and financial systems in an increasingly deflationary landscape. It is becoming a challenge to seek out opportunities for investments in China, the rest of North Asia, India and South East Asia, especially in this low risk-adjusted return environment. Meanwhile, the world awaits the US Federal Reserve's next move, as the economies of Europe and Asia are in various throes of a tail-spin. Despite central banks' efforts to bring down interest rates in the Asia-Pacific, the collective economies are anemic.
Under this challenging investment environment, what investment and economic strategies should investment managers adopt? What are the regulatory challenges facing central banks in Asia as viewed through the eyes of an investment manager? How do we think central banks should coordinate policies? These are pertinent issues facing investment managers in particular and investors in general. The Roundtable panel discussion hopes to address these imperatives in a special lively session involving the top asset managers, asset owners, as well as regulatory and financial experts in Asia within a Singapore perspective.
Panelists and Moderator
Mr Danny Yong
Dymon Asia Capital, Chief Investment Officer & Founding Partner
Danny Yong is the Chief Investment Officer and founding partner of Dymon Asia Capital. The Firm was founded in 2008 and is an alternative investment management firm with assets under management exceeding USD 4.5 billion across hedge funds and private equity at the start of 2015. The Firm is headquartered in Singapore with offices in Hong Kong and the United Kingdom. Dymon Asia Capital, which is majority owned by Partners, established a strategic partnership with Temasek, a Singapore-based investment company, in May 2014.
The Firm’s core Fund, Dymon Asia Macro Fund, implements a discretionary global macro strategy with a focus on Asian currencies, fixed income and equity indices. The team is 95 strong with 44 investment professionals. The Investment team consists of 18 portfolio managers with experience averaging 19 years almost exclusively in Asia, ensuring an in-depth knowledge of the idiosyncrasies across Asian markets, including regulations, flows and cultural nuances. Demonstrative of the Firm’s specialty and expertise in the Asian market where more than 85% of the Fund’s historical returns were derived from Asia, the Fund has returned 10% p.a. (net) annualized since inception, including a return of 18.75% in 2014.
Mr. Danny Yong has over 18 years of experience trading FX, fixed income and index futures in Asia. He was a founding partner and Chief Investment Officer of Abax Global Capital, a hedge fund based in Hong Kong. Danny was also a Managing Director at Citadel Investment Asia in Hong Kong, where he established and ran the Asia Macro trading business from late 2005 to early 2007 for the firm. He was Goldman Sachs’ Head of Trading for South East Asian Derivatives where he spent almost six years in the Hong Kong and Tokyo offices.
The Global Economy Seven Years After Financial Crisis: Vulnerabilities and Policy Issues
Following the global financial crisis of 2008, most advanced economies went into a protracted economic slump, coupled with rising unemployment, a historic private debt overhang, and rapidly mounting public debts. Meanwhile, helped by rapid growth in China, buoyant commodity prices, and extremely low and stable international interest rates, most emerging markets flourished, attracting sizable capital inflows and recording healthy levels of growth. Seven years after the most significant global turmoil since the 1930s, many advanced economies in Europe have barely begun to recover and deflationary challenges have emerged, further complicating the process of private and public deleveraging. The favorable global environment has taken a turn for the worse, as commodity prices have declined and the strengthening US dollar had raised debt servicing burdens for many emerging markets. This talk places the current global situation in a broad historical context, discussing the main policy challenges faced by both advanced and emerging economies and distilling historical lessons on what the end game may bring.
Professor Carmen M. Reinhart
Harvard University Minos A. Zombanakis Professor of the International Financial System
Carmen M. Reinhart is the Minos A. Zombanakis Professor of the International Financial System at Harvard Kennedy School. Previously, she was the Dennis Weatherstone Senior Fellow at the Peterson Institute for International Economics and Professor of Economics and Director of the Center for International Economics at the University of Maryland. Professor Reinhart held positions as Chief Economist and Vice President at the investment bank Bear Stearns in the 1980s.
She spent several years at the International Monetary Fund. Reinhart is a Research Associate at the National Bureau of Economic Research, and a member of the Congressional Budget Office Panel of Economic Advisers and the Economic Advisory Panel of the Federal Reserve Bank of New York. She has been listed among Bloomberg Markets Most Influential 50 in Finance.
Reinhart has written on a variety of topics in macroeconomics and international finance. She has served on numerous editorial boards and has testified before congress. Her work has helped to inform the understanding of financial crises for over a decade. Her best-selling book (with Kenneth S. Rogoff) entitled This Time is Different: Eight Centuries of Financial Folly documents the striking similarities of the recurring booms and busts that have characterized financial history and has been translated to over 20 languages and won the 2010 Paul A. Samuelson TIAA-CREF Institute Award, among others.