The Canadian pension fund plans to increase its allocation to the region from 10% to 15% over the coming four years, even as its total assets under management rise.
He will build a team of three more analysts, and it is envisaged that their skillsets will incorporate event driven, quantitative and M&A, in order to provide research ideas in these areas of hedge fund interest.
David Kwan has been promoted internally from the sales desk to take the new post of head of sales, in which capacity he will be responsible for a team of seven salesmen.
ôWe have to build up our critical mass now because business is growing at 70% per year,ö says Tom Ashworth, managing director in Hong Kong.
Business for KE Absolute has traditionally been strong in Europe, and its next target is North America, where one fifth of its business is currently derived. The firm hopes to boost income in the States from funds trading Asian strategies to half of its revenue.
Concerning how much people get paid in an independent house like KE Absolute, as opposed to an investment banking-style securities house, KE adds that it tries to differentiate itself by avoiding the inevitable nasty surprises that seem axiomatic with discretionary bonuses. KE Absolute says it pays its sales team their bonuses using a fixed formula of commission sharing.
KE Absolute is an independent unit of Kim Eng Securities, which gives it access to all Asian markets. It specializes in servicing Asian focused hedge funds.
It splits research coverage into five categories, opportunistic, market neutral, arbitrage, relative value and event driven. Also; if asked nicely, a hedge fund can give them a trading idea and KE Absolute says it will come up with a research view on it.
They have teamed up with each other and with overseas investors to boost investment capacity in real estate and infrastructure investments in Europe and North America.
Asset owners across Asia Pacific weathered some difficult market conditions in 2020. While most emerged from the year successfully, some notable exceptions suffered asset drops.
Thanks to the current rise in yields, the key return driver of the bond market is set to change but its bull run will very likely continue.
Asian institutional investors were generally more optimistic about post-pandemic economic recovery but only 33% were confident about achieving their short-term objectives.