ade ajetunmobi portfolio 2016 - the medius · these markets. mass affluent investors in asia are...

P R I N T P O R T F O L I O © Copyright Ade Ajetunmobi 2016

© Copyright Ade Ajetunmobi 2016

P R I N T P O R T F O L I O

A set of posters and a website banner to promote a PIMCO Women’s event. This was designed using Adobe InDesign, Illustrator and Photoshop.

EMPLOYER: PROJECT TITLE: PROJECT TYPE:

PIMCO PIMCO Women Posters and Website banner

ATTRACT.RETAIN.DEVELOP.ENGAGE.

PIMCO Women

WELCOME

Event.

JOIN USWhen WhereThursday, 10 March 20162:00 – 4:00 pm PT

PIMCO Conference Center

JOIN USWhen WhereThursday, 10 March 20162:00 – 4:00 pm PT

PIMCO Conference Center

ATTRACT.RETAIN.DEVELOP.ENGAGE.

PIMCO Women



A newsletter used to update the company on the peformance of the APAC region. This was designed using Adobe InDesign, Illustrator and Photoshop.


PIMCO APAC Quaterly Update Newsletter

Asia-PacificQuarterly Update

PIMCO Colleagues:

For our APAC professionals, the first quarter of 2016 has been characterized by continued growth and development in both our existing business and strategic projects.

On the traditional business side, we continue to migrate up the value chain with clients and prospects. Leveraging our partnership with the US FIG team (special thanks to Robert Young and Matt Schwarz for their successful recent visit) we have several live prospects in the Asia ex-Japan insurance space. We have also deepened our engagement with key strategic client partners in Japan FIG, and won an innovative asset allocation/alts blended mandate in Korea (thanks to Ashish Tiwari and the multi-asset PdM team for their critical support). In Australia, we are near funding on a key insurance mandate with potential for meaningful relationship growth (thanks to our European FIG colleagues and PM analytics for all their help and advice).

In terms of other key efforts, we continue to press ahead on our plan to develop an onshore presence in China and have been partnering with the firm’s Business Assessment Committee. We are also increasingly focused on the importance of outcome-oriented investments, and the potential benefits of collaboration between PIMCO and key online distributors throughout the region (especially in China). Our regional leaders are actively engaged on all these fronts.

Thank you as always for your attention and engagement!

Best regards,

Eric J. Mogelof

Head of Asia-Pacific

01

02

03

04

ASIA EX-JAPAN ONSITE:

Refining our strategic vision

PROJECT LOTUS:

A strategic investment in segments of Asia’s rapidly growing individual investor market

PROJECT RIO:

An Australian solutions-driven partnership with our parent

JAPAN GWM:

New distribution approach with SBI group

For internal use only. As of 31 March 2016

Q1 2016

FEATURED

PIMCO JAPAN GIVES BACK:

The Tohoku volunteer trip

PROJECT LOTUS:

A strategic investment in segments of Asia’s rapidly growing individual investor market According to the 2015 World Wealth Report, the Asia Pacific region has surpassed North America to become the largest high net worth population globally, and the “millionaire next door” market segment is growing at over 9% per year.In 2012 PIMCO in-sourced Asia ex-Japan GWM distribution, which had previously been distributed by Allianz Global Investors. At that time, we made a strategic decision to focus on building our Private Banking business, which has grown to over $6 billion in AUM. We also inherited $1.2 billion in mass affluent AUM across Hong Kong and Singapore, which has been depleted in the absence of a team to service and grow these assets.This combination of external wealth dynamics and internal opportunities to recapture and grow AUM leads us to believe this is the right time to invest in expanding the Asia ex-Japan Global Wealth Management platform, a cross-functional effort we have termed “Project Lotus.” There are $450 billion of immediately accessible assets in Hong Kong and Singapore retail and family offices, as well as the “new markets” of Thailand and Malaysia. In the future, this market will expand by an additional $700 billion with the inclusion of China and Indonesia, which are increasingly accessible to global managers like PIMCO.Importantly, the foundational building blocks are already in place for PIMCO to tap into these markets. Mass affluent investors in Asia are proven mutual fund buyers; also, demand for high quality global brands is high and competitor penetration is low. Another key advantage for PIMCO is the fact that we have already concluded distribution agreements with 8 of the 10 key distributors, as well as 18 registered retail mutual funds in Hong Kong and 27 in Singapore.

To drive this project, we are investing in: 1. People: Mass affluent distribution requires

a “feet on the ground” coverage model, with large banks in Hong Kong and Singapore each having over 150 branches. Servicing distributors and joining roadshows requires a team of full time mass affluent distribution professionals to visit these branches.

2. Marketing: Our current suite of materials will be augmented and modified for a mass affluent focus, with marketing materials to be produced in English as well as Traditional and Simplified Chinese. An important part of this will be working with distributors to create co-branded marketing campaigns and events.

3. Brand: PIMCO’s brand resonates strongly within the mass affluent markets, though investors typically make decisions based on what they see or hear frequently. As such, building our local language media presence is critical.

4. Operations: Servicing mass affluent clients requires us to expand our shareholder services, fund statistics, legal, compliance and administrative functions.

Our goal is to be well organized by late-summer 2016 which will position us well for the main annual asset raising period of December to April.PIMCO has a unique opportunity to tap into these rapidly growing wealth markets, and the team in Asia ex-Japan is excited and actively focused on delivering this growth for the region and the firm.

DONNA CHAN

MICHAEL CHENG

HENRY CHUI

ALAN ISENBERG

SERINA LIM

RALPH LOPEZ

MELISSA REEVES

TODD STALEY

MICHAEL THOMPSON

NICK WALKER

02For internal use only. As of 31 March 2016

03

PIMCO JAPAN GIVES BACK:

The Tohoku volunteer trip The 2015 Volunteer trip marked our 5th anniversary of the PIMCO Tohoku trip, in the wake of the devastating 2011 earthquake.The first few visits involved supporting physical labor needs, where towns/villages needed to demolish collapsed buildings and build new ones. This effort has migrated to advising on urban and economic planning for the towns and villages.

All participants had unique experiences where we came away feeling we had received more than we have offered during these volunteer activities. It has been a true honor to develop this sustainable partnership and participate in the renewal of this beautiful region.

An Australian solutions-driven partnership with our parent Project RIO (Retirement Income Opportunity), simply put, aims to offer a suite of innovative retirement income solutions to the Australian marketplace to help clients, in both the advised and superannuation markets. The project

aims to harness the joint capabilities of both PIMCO and Allianz and has

received strong initial support from key stakeholders.

A number of factors make this an exciting

opportunity, including a retirement savings market of over A$2 trillion; the fact that over A$73 billion is moving annually

from accumulation to decumulation;

regulatory tailwinds supporting the provision

of retirement income; and a significant lack of product innovation in the Australian retirement income market. All of these factors, combined with a now fully-insourced PIMCO Australia distribution team, favor exploring the potential to collaborate with Allianz in the retirement income space.Having spent a number of months studying the market, products, competitors and clients, the working group — made up of both PIMCO and Allianz representatives — has developed a number of potential solutions that can be “road tested” with clients and consultants. We also plan to leverage market research to test key assumptions. This aims to be a highly iterative process, with further feedback utilized to refine product concepts where necessary. We are also focused on developing the optimal operating model in light of complex regulatory, operational and distribution requirements. Please stay tuned and share your feedback!

SARAH HIGGINS

MANUSHA SAMARAWEERA

ADRIAN STEWART


PROJECT RIO:

Imaio dolor soluptia net ut audis ab inciis sinciissed quam que ex eseriae ctoratus exerumetum accus.

TOHOKU VOLUNTEERS

New distribution approach with SBI group As described in the previous newsletter, the effort to capture structural opportunities and help drive Japanese investors from bank deposits to mutual funds is one of our top strategic objectives in APAC. $7.5 trillion of Japanese household assets are “sleeping” in bank deposits, with only $0.8 trillion or 5.5% in mutual funds.Multiple government initiatives (both financial and communications-oriented) have sought to drive investors from deposits to investing. Moreover, the BOJ’s negative interest rate policy has started to push depositors towards “low risk/ low return” investments.While PIMCO Japan has been hugely successful in the sub-advisory business, we need to expand our distribution model from the traditional sub-advised approach to a more cost competitive online distribution model.

In the long run, large swaths of inheritance assets are expected to transfer to the next generation, which has higher technology literacy. We also expect technology trends (including the advent of “FinTech” solutions) to support continued growth of the online asset management business. Recognizing these market dynamics and this opportunity, on April 1 we launched a joint venture with SBI holdings, the largest Japanese online financial conglomerate. We will provide low and moderate risk products to the JV as a sub-advisor through an arm’s length agreement, with SBI group distributors focused on promoting these strategies to their customer base. The first product, Japan Credit, will be launched in June, and we look forward to several successful launches thereafter.

04

• $4 trillion inheritance (excluding real estate) will be transferred to next generation (higher technology literacy) by 2030

• More financial assets are expected to move to online channel

INHERITANCE

• FinTech evolution (e.g. Robo-advisor) will accelerate shift from deposit to investment

• Needs to cope with the nature of “long-tail” in the internet brokerage business by brokers’ commitment

FINTECH EVOLUTION

Growing market ripe for online asset

management business

• Government tries to shift individual financial assets from savings to investment

• To capture younger generations’ money, we need to strengthen the online channel

GOVERNMENT INITIATIVE


JAPAN GWM:

DOUG HODGE WITH SBI CEO YOSHITAKA KITAO



These are set of three Booth Graphics to promote PIMCO at an Italian event. This was designed using Adobe InDesign, Illustrator and Photoshop.


PIMCO Salone del Risparmio - Italian Event Booth Graphics

Tassi bassi non vuol dire avere cedole basse.





A range of evergreen email banners to be used with periodic emails sent out to clients regarding the Market and performance of PIMCO’s funds. This was designed using Adobe Illustrator and Photoshop.


PIMCO PIMCO Market and Performance Review Email Banner



Infographic designs used within a presentation to promote a new range of funds. This was designed using Adobe Illustrator.


PIMCO Allianz Bank Marketing Presentation Infographics



Infographic design to illustrate the difference between business expansion in developed and emerging markets. This was designed in Adobe Illustrator and later adopted for a PowerPoint presentation and Brochure.


HSBC - Global Asset Management Business Expansion in New Markets Infographic Diagram

CASH INVESTMENTCASH MOBILITY

INVESTMENT STRATEGIES

D E V E L O P E DM A R K E T S

CASH INVESTMENTCASH MOBILITY

INVESTMENT STRATEGIES

E M E R G I N GM A R K E T S

BUSINESS EXPANSION IN NEW MARKETS

Cash Investment opportunities are limited in some markets

In some countries Cash Mobility may be limited

Investment Strategies also need to move into these

new countries

US

CANADA

UK

EUROPE

TURKEY INDIA

CHINA

HONG KONG

TAIWAN

ARGENTINA

BRAZIL



Leaflet design used as a sales aid to promote the HSBC World Index Cautious Portfolio to investors. This was designed using Adobe InDesign, Illustrator and Photoshop.


HSBC - Global Asset Management HSBC World Index Cautious Portfolio A5 Leaflet

HSBC World Index Cautious PortfolioA low-cost global, multi-asset solutionOur World Index Cautious Portfolio is a single-fund solution – global, multi-asset portfolio that primarily holds passive investment products, namely index tracking funds and ETFs.

The portfolio aims to provide capital growth through cautious investment in a broad range of asset classes across global markets, with a bias towards fixed interest securities. The portfolio invests across developed and emerging markets. Additionally, we invest in traditional asset classes as well as others including property.

With the HSBC World Index Cautious Portfolio, you will benefit from the expertise of our well-resourced and highly qualified investment teams managing the portfolios and their asset allocation.

And our regular portfolio rebalancing ensures that it remains in line with its agreed risk budget. We also include Tactical Asset Allocation to take advantage of market changes and strong market performances of different asset classes. All at a low cost of 1.00% AMC (TER Circ 1.3%).

Six reasons to choose this portfolioWorld Index brings global multi-asset diversified investing to you at a lower cost (on a TER basis), by using a range of professionally blended passive solution.

Optimum diversification

Our multi-asset investment team have built the portfolio with what they believe is the right mix of asset classes to deliver optimum diversification,

considering the portfolio’s risk range.

Robust asset allocation

Asset allocation modelling is a core competency of the multi-asset team. They primarily use the HSBC tried and tested quantitative methodology but there

is also a qualitative overview built into the process.

Risk tolerance based on end-customer research

The HSBC Group undertook extensive research to

fully evaluate the risk tolerance you expect.

Regular Rebalancing

The cautious portfolio will be rebalanced to its original target asset class weights every 3 months. This helps ensure that your risk tolerance is not compromised as asset classes perform differently

over time.

Strong governance

The HSBC Group employs extremely strong governance across all investment vehicles so when we include an HSBC product in the portfolio we can be sure that our high standards of governance are being met. In fact, all of our equity index funds are AAA rated by S&P – a first among tracker funds. And when we use products from other providers we employ the same high standards of due diligence.

HSBC World Index Cautious PortfolioAn excellent solution for the investment world.

February 2014

HSBC World Index Cautious Portfolio – a diversified portfolio

HSBC World Index Cautious Portfolio provides a managed, single-fund solution for investors who recognise the importance of three things:

` Global exposure

` Multi-asset investment

` Low cost 1.00% AMC (TER Circ 1.3%)

Head of Wealth Portfolio Date of Management - Retail launch

Caroline Hitch 19 February 2011

HSBC Global Asset Management (UK) Limited accepts no liability for any failure to meet such forecast, projection or target. The World Index Cautious Portfolio is a sub-fund of HSBC OpenFunds, an Open Ended Investment Company that is authorised in the UK by the Financial Conduct Authority. The Authorised Corporate Director and Investment Manager is HSBC Global Asset Management (UK) Limited. All applications are made on the basis of the HSBC OpenFunds prospectus, simplified prospectus and most recent annual and semi annual report, which can be obtained upon request free of charge from HSBC Global Asset Management (UK) Limited, 8, Canada Square, Canary Wharf, London, E14 5HQ, UK, or the local distributors. Investors and potential investors should read and note the risk warnings in the prospectus and relevant simplified prospectus. To help improve our service and in the interests of security we may record and/or monitor your communication with us. HSBC Global Asset Management (UK) Limited provides information to Institutions, Professional Advisers and their clients on the investment products and services of the HSBC Group. This document is approved for issue in the UK by HSBC Global Asset Management (UK) Limited who are authorised and regulated by the Financial Conduct Authority.

Copyright © HSBC Global Asset Management (UK) Limited 2014. All rights reserved.

US Equity (hedged into GBP)

UK Gilt

Europe Equity (hedged into GBP)

Global Corporate Bonds (hedged into GBP)

UK Equity Global High Yield Bonds

Japan Equity (hedged into GBP)

Emerging Markets Debt - Hard Currency

Asia Pacific ex Japan Equity

Emerging Markets Debt - Local Currency

Emerging Markets Equity

Property

US Treasuries (hedged into GBP)

Cash

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate. Stock market investments should be viewed as a medium to long term investment and should be held for at least five years.

The portfolio contains primarily index tracking funds. However, in some cases either there isn’t a suitable index fund and we are using ETFs or, at least initially in the case of government bonds, we are using direct investments. In order to gain the best value for World Index investors we are using HSBC index tracking funds where available, and a selection of other products from a number of other investment managers.

World Index Cautious Portfolio in detail

We try and make portfolio management easier for you. All we need to do is identify your objectives and

tolerance for risk.



Design for a Printed Menu for a Golf Event that was hosted by HSBC for Investors. This was designed using Adobe InDesign, Illustrator and Photoshop.


HSBC - Global Asset Management MENA Golf Menu Printed Menu

THE MENUJUMEIRAH GOLF ESTATES

Wednesday, 20th November 2013

24583 11/13

~Soup~Lentil & Lemon Soup

~Salad Bar~Hawaiian curried Chicken salad

Pacific Tuna bowl & Grilled vegetables

German Potato Salad with Beef-Bacon

Mixed Green Salad with Assorted Dressing

Assorted Bread Roll and Butter

~Hot Entrées~Beef Lasagna

Mixed Vegetable ratatouille

Mushy Peas Potatoes

Pilaf Rice

~Live Cooking~Grilled Tandoori Chicken

Lamb Kofta

Grilled Hammour

Beef Kebab

~Dessert~Fresh Fruit Salad

Assorted Pastries

Pineapple & Banana Caramel

Soft drinks and mineral water

BBQ & Buffet Menu



Layout of Corporate Brochure for investors interested in HSBC’s Managed Solutions for wealth management. This was designed using Adobe InDesign, Illustrator and Photoshop.


HSBC - Global Asset Management HSBC Managed Solutions Corporate Brochure

A smarter way to manage wealth

HSBC Managed Solutions

This brochure is for Relationship Managers at HSBC and

outlines the benefits of Managed Solutions for their clients.

ContentsHSBC Managed Solutions

A smarter way to manage wealth 4

The Benefits

Why consider HSBC Managed Solutions? 6

How we do it

Asset Allocation Process 10

Risk

How identifying individual risk profile helps us to manage risk 13

HSBC Credentials

Why clients have entrusted HSBC to manage more than $xx in multi-asset portfolios 14

4 HSBC Managed Solutions

HSBC Managed Solutions

A smarter way to manage wealth

HSBC’s range of Managed Solutions portfolios has one clear aim - to help your clients manage and grow their wealth.

Underlying the approach is an acknowledgement that having wealth held in cash deposits alone is unlikely to produce the growth required to achieve most people’s long-term financial targets. In fact, due to the impact of inflation and taxes, the buying power of cash holdings is almost certain to diminish over time. HSBC Managed Solutions, therefore, use other investments including equities, fixed income and property to help deliver a greater potential return than holding cash alone.

Holding wealth in assets other than cash does, however, bring additional risks, which is why HSBC’s financial planning and risk profiling tools are used to identify the most appropriate Managed Solutions portfolio for a particular client’s needs.

This process is pivotal in giving clients the confidence that their wealth will be professionally managed to help achieve their financial goals, and, at a level of risk that matches their specific circumstances.

We believe that thinking about the future of one’s wealth in this way requires a mature, pragmatic and long-term outlook. For HSBC it’s about sensible management of your clients’ wealth over a number of years and not about taking undue risks for short-term gains. It’s an approach that we believe rewards intelligence, experience and expertise based on sound investment principles. In essence, a smarter way to manage wealth.

“Inflation rates will lead to an erosion in real value of your

clients savings. HSBC Managed Solutions aims to counteract

the eroding impact of inflation by growing the real value of your

clients’ wealth in line with their individual risk profiles.”

HSBC Managed Solutions 5


The Benefits (contd)

HSBC makes the investment decisions on behalf of customers

We place a high emphasis on understanding our customers attitude to risk because Managed Solutions is a fully delegated service.

It means we make all the investment decisions allowing us to manage the portfolios against specific risk parameters.

For clients, it not only takes away the worry about which investments to hold within their portfolios but also when to make

changes. History shows that investors are typically poor at timing when to increase their exposure to riskier assets and when to

reduce it. As the chart below shows, people often invest when markets are high and pull their money out once values have fallen

thereby crystallising their losses. And, because markets often recover sharply when sentiment improves, investors miss out on

these recoveries because they are no longer invested. [add text from chart to make the point of impact if missed best up days and

being out of the market]

Our disciplined approach focuses on maintaining the appropriate long-term asset allocation for each portfolio’s risk profile rather

than making frequent changes in the hope of short-term gains.

Our portfolio re-balancing process aims to ensure that the desired asset allocations for portfolios are not unbalanced by market

movements. This is an aspect of risk control that non-delegated clients often find difficult to implement and, if left uncontrolled, can

significantly alter the risk profile of their portfolios.

It’s easy to make costly mistakes

Investors, basing their allocations from looking in the “rear view mirror”, often engage in self-defeating behaviour, buying high,

selling low

-40%

0%

40%

80%

120%

160%

200%

-1,000

0

1,000

2,000

3,000

4,000

5,000

Dec-02 Aug-03 Apr-04 Dec-04 Aug-05 Apr-06 Dec-06 Aug-07 Apr-08 Dec-08 Aug-09 Apr-10 Dec-10 Aug-11 Apr-12 Dec-12 Aug-13

12 Month average net sales USD Million

MSCI World percentage growth since Dec 2002

Source: Lipper Fund File, Morningstar, March 2012. All data in USD. US domiciled fund sales are excluded.


Customers have easy access to their investments should plans change

Life is rarely constant and sometimes our plans need to change. We recognise that clients value being able to access their

investments should the need arise.

All HSBC Managed Solutions are fully accessible so that clients can sell some or all of their investment whenever they wish to.

There are no lock-in periods or exit penalties.

Nevertheless from an investment and risk-control perspective we recommend that clients consider Managed Solutions as a

long-term investment with a minimum investment horizon of 5 years. This is because our investment philosophy and process

is based on identifying long-term investment opportunities, typically where asset class valuations do not reflect their long-term

fundamental values.

1

2

3

4

5

A range of investment products tailored to match different risk budgets

Aiming for superior risk-adjusted returns, relative to a single asset class investment

Diversification accross different asset classes, currencies and geographies

Following a robust and highly academic three-step investment process of SAA, TAA and Implementation

A core investment solution adapted to an investor’s risk tolerance

Managed Solutions provide the potential to grow the real value of your

clients’ wealth through a risk-aware investment experience matched to

their needs where HSBC makes the investment decisions on behalf of

clients. Clients receive regular updates on their investment progress with

easy access to their investments should plans change.


How do we do it

Asset Allocation Process

Given the importance of asset allocation in determining a portfolio’s overall return and its risk characteristics we use a 3 stage

process as shown below.

Defining the 3 Stages of Asset Allocation

Shorter-term adjustments tostrategic asset allocation toexploit market inefficiencies

Review at least weekly

2

Assessment of the mostappropriate method offulfilment for each asset class

3

Blend of different asset classes,currencies and geographies tomeet long-term investment goals

Reviewed at least annualy

1

Tact

ical

ass

et a

lloca

tion

Implem

entation

Strategic asset allocation

KEYS

Emerging Markets Equity

Global Aggregate Bonds (hedged in USD)

Global High Yields

GEM Debt - Hard Currency

US Equity

Europe Equity (hedged in USD)

Japan Equity (hedged in USD)

Asia Pacific ex Japan Equity

GEM Debt - Local Currency

Property

Commodity

Private Equity

Hedge Fund

Absolute Return

Liquidity

Source: HSBC Global Asset Management, December 2013


1. Strategic asset allocation

Strategic asset allocation is the process of deciding the appropriate proportions of different asset classes to include within a

long-term investment portfolio.

The aim is to identify the optimal long-term exposure (typically looking 10 years ahead) to different asset classes for each

portfolio’s individual risk budget. This is achieved by analysing the expected long-term returns and risk expectations of the

various asset classes and how closely these returns are correlated to each other. By combining asset classes that are

weakly correlated it is possible to enhance the potential return for a given level of risk or reduce the overall risk for a specific

level of return.

2. Tactical asset allocation

Tactical asset allocation gives further flexibility to make changes to the recommended asset allocations produced from

Strategic asset allocation process. Changes may be opportunistic and are made to exploit short-term market anomalies such

as changes in price, newsflow or near-term economic outlook. Decisions are taken within a 3-12 month time horizon and are

designed to reduce risk, enhance return opportunities or both.

3. Implementation of Asset

Allocation Assessment of the most appropriate method of fulfillment for each asset class.



Layout of Corporate Brochure for the Emerging Markets Investors Guide which was also a part of the annual Chinese New Year event hosted by HSBC. This was designed using Adobe InDesign, Illustrator and Photoshop.


HSBC - Global Asset Management Emerging Markets Investor Guide Corporate Brochure

Emerging MarketsInvestor Guide

This presentation is intended for Professional Clients only and should not be distributed to or relied upon by Retail Clients.

4

WHAT ARE EMERGING MARKETS?Emerging markets are defined as economies with low to middle per capita income. Such

countries constitute approximately 85% of the global population1, and represent over 50% of

world GDP (as seen in figure 1.2). Although this is loosely defined, countries that fall into this

category have begun to open up their markets and “emerge” onto the global scene. Emerging

markets are considered to be fast-growing economies which tend to offer an opportunity for

higher investment returns, but may also carry more risk relative to developed markets. Emerging

markets comprise of most (or all) of the following regions and countries: Eastern Europe, Latin

America, Russia, Africa, the Middle East and Asia, excluding Japan.

Within emerging markets there is a subset of countries that are classified as Frontier Markets.

There is no strict definition of what constitutes a ‘Frontier Market’. They are typically seen,

however, as countries capable of becoming the next generation of emerging markets. In other

words, those countries with a stock market that is ‘verging on emerging’ either now or at some

point in the future. These Frontier Markets are less researched and less liquid than emerging and

developed equity markets, and are largely dominated by local investors who are less affected by

global sentiment.

1 World Bank, CIA The World Factbook, HSBC Global Asset Management, JP Morgan as of 30 June 2012

M E X I C O

C O S TA R I C A

PA N A M A

C O L U M B I A

P E R U

B R A Z I L

C H I L E

A R G E N T I N A

K E N YA

Z A M B I A

Z I M B A B W E

M A U R I T I U S

S O U T H A F R I C A

N I G E R I A

O M A N

S A U D I A R A B I A

E G Y P T

M O R O C C O

T U N I S I A

T U R K E Y

R U S S I A

C H I N A

MONGOLIAKAZAKHSTAN

INDIA

K O R E A

B A N G L A D E S H

TA I W A NB U R M AT H A I L A N DV I E T N A MC A M B O D I A

S R I L A N K A

M A L AY S I A

I N D O N E S I A

PA K I S TA N

E S T O N I A

L I T H U N I A

P O L A N D

C Z E C H R E P U B L I CH U N G A R Y

B U L G A R I A

U K R A I N E

R O M A I N I A

L E B A N O N

J O R D A N

K U W A I T

G E O R G I A

Q ATA R

U N I T E D A R A B E M I R AT E S

S L O V E N I A

B A H R A I N

C R O AT I A

S E R B I A

E M E R G I N G M A R K E T S

F R O N T I E R M A R K E T S

P H I L L I P I N E S

5

Figure 1.0 - World map of Emerging Frontier Market countries

Source: HSBC Global Asset Management and MSCI, as at December 2013

20

Three key reasons for investing in Frontier Markets:

Low correlations Frontier Markets have historically had low correlations with other equity asset classes, other Frontier Market countries, and commodities.

Cash returns Returns in the form of high dividend yields given the cash flow generative nature of established Frontier Market companies that are simply new to the local stock exchange.

Cheap valuations Relative to both emerging and developed markets and against their own history.

What we offer

Strategy Strategy inception date Key points

Frontier Markets Equity

February 2008 ` At an earlier economic development stage than GEM offering higher growth but at much lower valuations

` One of the least correlated equity classes globally

FOCUS ON: ALTERNATIVE INDEXATIONAs mentioned above, alternative indexation is a different choice for investors to traditional passive

cap weighted indexing. Alternative indices aim to achieve above market returns while retaining

the numerous benefits of passive management such as transparency, scalability, accessibility and

low costs.

Cap weighted indexation weights every individual component within an index according to their

respective market capitalisation so that larger components carry a larger weight.

In the 1970s investors looked at equity investing in light of the Efficient Market Hypothesis11,

which stated that all information was public and the only way to therefore increase return was

to increase risk. As such cap weighted passive investing was designed as the optimal portfolio.

We now believe markets are inefficient, and in fact markets like emerging markets are very

inefficient, and therefore cap weighted portfolios are not optimal.

Challenging cap weighted investing is not new, and as investors we are well aware of the flaws

inherent in cap weighted investing:

` Chasing winning stocks i.e. stock market bubbles

` No rebalancing to capture mean reversion in stock prices (more important in volatile markets)

` Prone to over concentration in developed markets

Despite these flaws, investors still invest in cap weighted passive portfolios because they are

either disillusioned with active management orwant a ‘set and forget’/low cost strategy.

There are different types of alternative indexation, however for simplicity we will focus on

fundamental indexation. Fundamental indices weights stocks by the economic size of the

company through a fundamental measure such as sales or earnings or a company’s“value added”,

rather than their market capitalisation. Much of the potential outperformance from alternative

indices comes from the re-balancing process. The weight of popular companies increase above

their target weights, therefore, some of their shares are sold at the next rebalance. The weights

of out of favour companies decline below their target weights and so more of these shares are

bought at the next rebalance.

Within emerging markets where there are many price anomalies and higher volatility, alternative

indices can produce very attractive risk-adjusted returns for the same (or similar) price as a

passive investment.

DID YOU KNOW?Televisions - Your

favourite show

Mexico is the world’s largest exporter of

flat-screen televisions*.* Kestenbaum, D. (2012). Why Mexico Is The World’s Biggest Exporter of Flat-Screen TVs. Available: www.npr.org/blogs/money/2012/11/30/166180397/

11 Fa`ma, Eugene (1970). ‘Efficient Capital Markets: A Review of Theory and Empirical Work’. Journal of Finance 25 (2): 383–417.

21

Three key reasons for investing in Fundamental Indexation:

Markets are inefficient – especially Emerging Markets

Inefficient markets are more volatile, alternative indexing methods aim to harvest this noise and generate more revenue

Low cost In a similar way to passive investing these strategies have low turnover.

Logical and robust index

Reduces exposure to bubbles in stock which are often found in the emerging markets.

What we offer

Strategy Strategy inception date Key points

Economic Scale Indexation (Range includes Emerging Markets; ACWI; and will include Global; US and Japan)

April 2013 ` Diversification of passive holdings

` Utilises a proprietary index unique to HSBC

` ‘Value Added’ methodology - weighting based on company fundamentals and economic footprint as opposed to traditional market cap

` Provides access to a ‘semi-active’ strategy for close to passive fees

DID YOU KNOW?Cars - Your journey

to work

1 in 4 cars produced in the world originated from China. India was the 5th

largest car producing country*.* Cars Produced in the World.

Available: www.worldometers.info/cars/.



Layout of Corporate Brochure that was used in a pitch to win new business to the company. This was designed using Adobe InDesign, Illustrator and Photoshop.


Ernst & Young (EY) EU CRD IV Country by Country Reporting Corporate Brochure



Layout design for a proposition booklet to provide audit and actuarail services to their client. This was designed using Adobe InDesign, Illustrator and Photoshop.


Ernst & Young (EY) Equity Red Star Square Booklet



Layout design for an A5 Pamphlet that explained the merits of Wire Transfers and recommendations for implementation. This was designed using Adobe InDesign, Illustrator and Photoshop.


Ernst & Young (EY) FATF Recommendtation 16 Wire Transfers A5 Pamphlet



Layout Design for a Trifold Leaflet explaining to client how they can push ther portfolio expectations. This was designed using Adobe InDesign, Illustrator and Photoshop.


Ernst & Young (EY) Pushing Portfolio Performance Trifold Leaflet



Design of a Pitch Book, used to accompany a presentation to promote Digital Insurance Transformation. This was designed using Microsoft PowerPoint.


Ernst & Young (EY) Digital Insurance Transformation Printed Presentation



Onscreen Presentation design for an event to introduce proposals to new joiners. This was optimised to a widescreen with a 16:9 Aspect Ratio and designed using Microsoft PowerPoint.


Ernst & Young (EY) Aspire Launch Event Onscreen Presentation



Conceptual Design to explain a complex diagram for a Solutions Portfolio on Commercial Excellence. This was designed in Microsoft PowerPoint as the client want the ability to edit it in the future.


Ernst & Young (EY) The Solutions Portfolio A4 Leaflet



Design for Posters used to promot EY events. The images were retouched in Adobe Photoshop and the layout in Adobe InDesign.


Ernst & Young (EY) Tax Directors Network / Future Leaders Event A2 Posters



Layout design for the GCSE Sciences 2011 specifications to promote a coherent look and feel when stood side by side. This was designed using Adobe InDesign, Illustrator and Photoshop.


Edexcel (Pearson) GCSE Sciences 2011 Specifications Book Covers



Layout design for the GCSE Science Teacher Books to promote a coherent look and feel when stood side by side. This was designed using Adobe InDesign, Illustrator and Photoshop.


Edexcel (Pearson) GCSE Science Teacher Books Book Covers



Branding Concepts for two different clients. Started of with coming up with a Logo to be used as a Brand Identity. These were designed using Adobe Illustrator.

CLIENT: PROJECT TITLE: PROJECT TYPE:

Ubiquity Broadband/Zera Productions Branding Concepts Logos



Concept design for a teaser and main poster to promote an independent film. These were designed using Adobe Photosop, Illustrator and InDesign.


ILumination Films Holding On - Movie A0 Film Poster



Design of Flyer and Poster for a theatrical production that was used to promote a week long Easter event. These were designed using Adobe Photosop, Illustrator and InDesign.

Client: PROJECT TITLE: PROJECT TYPE:

ILumina Theatre Troupe Man on the Cross A6 Flyer / A0 Poster



Design of an advertisment to go into a Magazine and a custon CD Case to support a Men’s Conference. These were designed using Adobe Photosop, Illustrator and InDesign.


Mentor Unveiling the Real Man Magazine Ad / Custom CD Case



Brand design to give the sales and marketing collateral a brand identity for a Men’s Conference. These were designed using Adobe Photosop, Illustrator and InDesign.


Mentor Real Men, Real Issues DVD Case / Leaflet / Poster / Flyer



Conceptual design for Got an Idea! poster to promote design services and One Last Cry poster to promote a stage play. These were designed using Adobe Photosop, Illustrator and InDesign.


The Medius / House on the Rock Got an Idea! / One Last Cry A0 Posters



Design of Wedding Invitation. Client wanted something simple, clean and clear. This was designed using Adobe Illustrator and InDesign.


Tunde and Kemi Tunde weds Kemi Weding Invitation



Concept designs to promote an audition for actors and a 12 hour event entitled The Overflow. These were designed using Adobe Photosop, Illustrator and InDesign.


ILumina / The Overflow Audition Flyer / 12 Hour Event Flyers



Developed a stationery set as part of the Brand Identity for Zera Prodcutions to sit in line with the Logo and Website that was developed during the Branding process. These were designed using Adobe Illustrator and InDesign.


Zera Productions Zera Brand Identity Stationery Set

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