The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
Srinivasan is one of the regionÆs most experienced fund management chief executives. He is among a handful of players who can honestly claim to have built the business from scratch.
He joined Prudential ICICI Asset Management in India in 1998, a new joint venture that represented Prudential PlcÆs first fund-management presence in the region. The insurer and its India mutual funds JV represented a collective $30 million of assets under management in Asia Pacific.
In 2001 Srinivasan was picked to lead the Asia-Pacific funds business and moved to Hong Kong. At that point the life insurance business had grown to $1-2 billion but the firm had no retail funds business except its India JV.
Today Prudential Asset Management has a retail funds business in 10 regional markets, and in AUM terms has a top-five market share in India, Malaysia, Singapore, Taiwan and Vietnam. Its businesses in China, Japan and Korea are newer, as is its presence in the Middle East (also under Srinivasan). It manages $58 billion in Asia Pacific as of December. Srinivasan says the amount of assets sourced from the region is also about that size, of which half comes from retail.
He says he is most proud of putting in place effective teams for client service and the establishment of the product development team in Singapore, now led by Choy Peng-wah and Stuart Guinness.
The firm is transferring Alan Wren from London to serve as interim CEO. Wren has worked for Prudential Plc in the United Kingdom, left to work for a spell at Invesco, and has served for a number of years as an advisor to the firm. He is expected to arrive this week or next. The firm will also launch a formal search for a permanent successor.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
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