Taikang AM HK names fixed income head

Dec 4, 2014

Gordon Tsui takes over as head of fixed income at Taikang Asset Management as parent Taikang Life prepares to expand its overseas allocations.

Taikang Asset Management (Hong Kong) has appointed Gordon Tsui from Hang Seng Investment Management to head its fixed income team in Hong Kong, effective December 1.

He replaces Cary Yeung, who left to join Pictet Asset Management on September 1 in the newly created role of head of Greater China debt based in Hong Kong.

The Swiss firm is building out its renminbi bond investment and trading team in Hong Kong. It hired a bond manager and a bond trader in September, as reported.

Hang Seng IM declined to give further information on whether Tsui had been or would be replaced. At Taikang AM, he reports to chief investment officer Craig Chen.

He is tasked with expanding the firm’s three-strong fixed income team to five and managing its China Corporate Bond Fund, which invests in dim sum bonds and onshore credit.

Taikang AM (HK) is the overseas subsidiary of Beijing-based Taikang Asset Management, which had Rmb600 billion ($97 billion) in assets under management as of end-2013. The parent company is the investment arm of Taikang Life, China’s fifth biggest life insurer.

The Hong Kong unit is mainly invested in Greater China equities and investment grade bonds.
It is seeking to build up Taikang Life’s global portfolio, and is looking for higher returns in offshore assets, as reported.

Taikang Life has yet to add overseas bond allocations as onshore bonds offer higher yields and the renminbi is appreciating, said a source familiar with Tsui’s move.

Taikang AM plans to build up its overseas fixed income teams as China’s insurers will likely increase their overseas exposure in the next five-10 years.

“China onshore bond yields have dropped significantly in the past few months, therefore insurers will likely consider overseas fixed income when the onshore absolute yield moves even lower,” the source said.

Ten-year China government bond yields dropped to 3.57% yesterday from 4.24% in August.
Tsui was most recently head of fixed income at Hang Seng IM.

There he had managed the Hang Seng RMB Bond Fund for three years. Before taking up that role, he had from 2005 served as chief dealer at Hang Seng Bank’s treasury division.

Before that, he was from 2001 to 2004 Hong Kong Monetary Authority’s New York representative, according to his LinkedIn profile.