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EXCLUSIVE INTERVIEW: Bringing Asian Expertise To Rest Of World At Nikko

Tom Burroughes

23 December 2014

A sign of how some economic gravity has shifted to Asia is in how a major fund management business is headquartered out of Japan and likes to think in terms of what Asia can do for the West and not the other way around.

, a firm with Y17.47 trillion (about $145 billion) of assets under management (as at the end of September), has offices across Asia, the globe, and a roster of more than 280 investment professionals. And some recent hires suggest a quickening pace of momentum for the firm, including moves suggesting a push to win business from clients such as family offices.

This publication spoke recently to David Semaya, executive chairman, and a former head of wealth management for UK and Ireland at Barclays. He joined Nikko AM in April 2014; another erstwhile Barclays colleague who joined him in 2014 was Stefanie Drews, who had worked in the family office/ultra high net worth segment at the British bank. Semaya was on a visit to London explained his strategy for Nikko AM.

“The reputation of the business is extremely important and we have an aspiration to be Asia’s premier global asset management firm,” he said, pointing out that Nikko AM is no spring chicken – it marked its 55th birthday at the start of December. Having such longevity and brand recognition is also very useful in getting onto fund selector’s wish-lists.

Acquisition, as well as organic growth, has been a part of the recent story: “In Asia, after we acquired the DBS asset management business, this gave us a wonderful footprint in Singapore, in Malaysia, and other places.”  He also gave the example of the acquired Tyndall business in Australia and New Zealand – they now operate under the Nikko brand.

The firm clearly benefits from the widespread demand for Asian on-the-ground expertise in its markets; despite some wobbles, the region’s growth potential speaks for itself, and any firm that can boast expertise in the region has plenty of drawing power, Semaya said. “Asia has represented tremendous growth opportunities for everyone in local markets, and for people coming into the region from outside. In the investment management industry, having globally relevant, top-level expertise is very relevant,” he said.

In particular, wealth management clients, for example, want to have opinions from local experts. “We like to have a view that isn’t from `West to East’ from `East to West’,” he said. “That is becoming more widespread,” he continued.

Semaya argued that Nikko AM is already at the top of the list for clients seeking expertise in certain Pacific Rim markets, and its reputation is growing globally. “We are investing in Europe and the US to bring these market and client-facing capabilities to the marketplace.” “We are not only building relationships with managers in Asia but with Western firms in Asia as well,” he said.

The firm’s “multi-asset” offering is a draw for investors at a time when market volatility in regions such as Asia put a premium on asset managers skilled in navigating reefs and shoals of market shifts, he said.

A spokesperson for Nikko later added to Semaya’s points by stating that the firm will continue to target institutions. “For example, industry observers believe `solutions’ will be an increasingly important area in the future, and we have many of the component pieces necessary to offer competitive solutions. We will dedicate more time to understanding what clients require in this area and then tailoring services to meet their needs,” the spokesperson said.