Wealth & Finance Innovators in Asset Management Guide

Wealth & Finance International | Innovators in Asset Management Guide

Crossing Borders

Caitong International Asset Management Co., Limited (“CTIAM�) is a recognized China-base cross-border focused professional asset management firm. We spoke to them about their extensive network in China and beyond to allows them to achieve exceptional results with innovative solutions.

Clients Come First

Loyola Asset Management, LLC is a boutique independent Registered Investment Advisor (RIA). They spoke to us about their common goal of delivering success for their clients.

ASSET MANAGEMENT

Innovators inAssetManagement Guide www.wealthandfinance-intl.com

Unique experience and skill sets to add value to any transaction Karlin Real Estate is an investment firm targeting opportunistic aquisitions and financing of commercial, hospitality and multi-family properties across the United States. The firm takes a value add approach by aquiring real estate assets across a broad range of geographical markets and product types.

Since 2009 Karlin has acquired and financed close to $1 Billion of transactions representing approximately 10 million square feet across the US and Europe. Karlin Real Estate is an affiliate of Karlin Asset Management, a private investment firm managing over $1.4 Billion of unleveraged equity capital.

42 Brook Street, Mayfair London W1K 5DB UK Telephone: +44-020-3709-6000 Fax: +44-020-7958-9090

info@karlinre.com

www.karlinre.com

Welcome to the Wealth & Finance Global Guide to Hedge Funds Welcome to Wealth & Finance Magazine’s Innovators in Asset Management Guide.

As companies the world over place ever-increasing emphasis on the delivery of effective asset management, they are, at the same time, required to develop even more innovative strategies to ensure that their clients receive the best results.

Throughout this guide, we take a look at the forward-thinking firms and individuals who have truly excelled in this constantly changing industry over the course of the past 12 months.

Among the businesses lending us the benefit of their considerable industry insight are Loyola Asset Management, who share their philosophy on how they go above and beyond for their clients, and Caitong International Asset Management Company, who give us the lowdown on the innovative solutions they provide.

Plus, we hear from a host of top players all eager to give their views and insights into the fascinating and vital world of global asset management.

To find out more, read on‌ 4.

Caitong International Asset Management Co., Limited 6.

Loyola Asset Management, LLC 8.

Aberdeen Asset Management 10.

Afrinvest Asset Management Limited 12.

Equilibrium Asset Management 14.

Islamic Finance: A Global Force 16.

Sunrise Capital Partners

Wealth & Finance International | Innovators in Asset Management Guide

Caitong International Asset Management Co., Limited Caitong International Asset Management Co., Limited (“CTIAM”) is a China-based cross-border focused professional asset management firm aiming to provide next generation premier investment opportunities to global investors, as well as providing innovative, world-class investment products to Chinese investors from the PRC. With a strong institutional backing and technology-driven approach, CTIAM is equipped with state-of-the-art infrastructure and managed by experienced investment experts to provide high-quality solutions for China-focused, as well as world-wide investments.

Access to “Best of Breed” Managers CTIAM has extensive network with Greater China absolute return and global alternative investment managers. The firm focuses in providing investors access to elite and specialist managers with strategies designed to exploit the opportunities in the rapidly evolving global markets and particular in China.

is under the supervision of Zhejiang Provincial Department of Finance.

The registered capital of the parent company is RMB 3.1 billion.

As to the end of 2014, the total asset of the parent company had reached RMB 34,349 billion, with net asset of RMB 8.892 billion, and net capital of RMB 8.566 billion.

Our parent company has more than 80 offices in China (Beijing, Chongqing, Dalian, Fuzhou, Lhasa, Najing, Qingdao, Shanghai, Shenzhen, Wuxi, and other cities in Zhejiang Province) with over 2,000 employees. In addition, the parent company also owns Yong An Futures Co., Limited and Caitong Fund Management Co., Limited, Caitong International (Hong Kong) Co., Limited, and Zhejiang Equity Trading Centre Co., Limited.

Deep Rooted in China Global fund managers can leverage on CTIAM solid business and human network in China to penetrate into the institutional and professional investors in PRC; moreover CTIAM is well positioned to assist China-based managers or institutions to expand globally or capture unique cross-border investment opportunities.

Information & Technology Advantage CTIAM’s technological infrastructure is built on a global institution standard to enable rigid and seamless risk monitoring and comprehensive investment analytics, to maximize the benefit of full transparency available from funds on our platform.

Company: Caitong International Asset Management Co., Limited Name: Geoffrey Lam Title: Senior Executive Director Email: Geoffrey.lam@ctsec.com.hk Web Address: www.ctsec.com.hk Address: Room 4001, 40/F, Cosco Tower, 183 Queen’s Road Central, Hong Kong Telephone: +852 3713 2901

CTIAM has a very wide investment horizon and our business stretch from absolute return and hedge funds platform services, fundof-funds management, private equities investments and others cross-border investment opportunities. CTIAM has RQFII (Renminbi Qualified Foreign Institutional Investor) license from CFRC and we are working with our China affiliate for the QDII (Qualified Domestic Institutional Investor) qualification.

CTIAM’s vision is to become the most valuable gatekeeper for the East to meet West and the innovation leader in the asset management arena to provide the best risk adjusted return investment funds, as well as most cutting edge and well-designed investment products to satisfy the cross-border investment needs of institutional and professional investors in China and overseas.

Caitong International Asset Management Co., Limited is a wholly owned subsidiary of Caitong Securities Co., Limited (the “parent company”) in China, which is a Zhejiang province government-owned enterprise and

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Wealth & Finance International | Innovators in Asset Management Guide

ASSET MANAGEMENT

Loyola Asset Management, LLC is a boutique independent Registered Investment Advisor located in Coral Gables, Florida. Loyola Asset Management serves a diverse group of domestic and international affluent individuals, families and businesses who are looking for a disciplined and dedicated wealth management team. We offer our clients uncompromised advice with the added value of a family office environment.

Providing quite a heated debate in the financial services industry is the issue of automated investing (or “robo” advisors as they have come to be called). With a wave of technological disruption affecting many industries, it was only a matter of time until the financial services sector felt the ripples.

Yet, while the dropping costs consumers now enjoy are looked upon favorably, cost remains relative to value. When you want something done well, cost is not necessarily top of mind. And as this technological disruption continues to ripple through the entire industry, what these services seem to have left out is human contact.

When we think of the idea of automated investing, one question comes to mind: could you imagine boarding a plane without a pilot? Would you consider it then? Perhaps you would, but I believe most travelers would have greater peace of mind knowing that a qualified pilot capable of making decisions, should the unexpected happen, is in control.

We believe that the best results come from a combination of technology and advisors. Knowing you have someone to help you navigate through the turbulence of financial markets can be the difference between a good decision and a bad one.

Technology can take you far, but human interaction helps you to understand what your true needs and desires are. Helping people make the right decisions is where the real value exists.

The first airplane flight occurred on December 17, 1903. Wilbur and Orville Wright had finally designed and built a propeller-driven plane that they considered flight-ready. The controls were simple and few, but the two knew that with the proper handling, flight could be achieved.

While the idea of money is quantitative, few things incite more emotion.

Multiple studies have shown that individual investors are emotional investors. Buying high and selling low can result from your falling victim to fear and greed. But having somebody there to help you make the right decisions and put you on a disciplined path, in order to achieve security in the future, is what human contact is all about.

That 1903 record-setting flight lasted 59 seconds and reached a maximum altitude of 852 feet.

Flash-forward to the modern age: Nowadays, we know what airplanes can do. They transport thousands of people across thousands of miles, utilizing the most sophisticated technologies. Strict protocols are in place. The Federal Aviation Administration monitors these checks and balances—all because safety is more important than convenience.

Certainly, emerging technologies entering the industry have their place, and are ultimately proving to be useful tools for advisors. But beware of the invasion of “robo-advisors” that rely solely on technology without the backup of human supervision.

Now consider how technology this advanced affects the financial world.

Despite being a massive marketplace, the financial services industry, until recently, was largely lacking in financial technology. But now this idea of fintech, as it has come to be known, is disrupting the way portfolios are built and managed.

In times of crisis, your wealth will be better served by the happy marriage of sophisticated technologies and experienced, “old school” human advisors. Successful wealth management lies in an expert blending of the two.

These new technologies develop investment models based on modern portfolio theory (see the theory of finance developed by Harry Markowitz), are managed by algorithms and are given a strict rebalancing period. The result? Lowered costs and increased discipline and organization in the investment process—both positive outcomes.

Company: Loyola Asset Management Email: info@loyola-asset.com Web Address: www.loyola-asset.com Address: 55 Merrick Way Suite 208, Coral Gables, FL 33134 Telephone: 305 377 1941

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Wealth & Finance International | Innovators in Asset Management Guide

Aberdeen Asset Management Aberdeen Asset Management PLC is a global investment management group, managing assets for both institutional and retail clients from offices around the world. We got in touch with Andrew McCaffrey, Global Head of Alternatives at Aberdeen Asset Management, who spoke to us about the growing demand for alternative investments and the advantages they present to investors.

Traditional asset classes such as equities and bonds have been under more and more scrutiny from investors of late. Although the global economy is growing and equity volatility is low, many investors are concerned about the outlook for developed stock markets. On the other hand, government and investment grade bonds continue to carry high valuations in a low rate environment that is driven by ongoing central bank intervention.

Private equity ultimately provides exposure to equity investments.

Recent studies support the view that there has been a measurable ‘illiquidity premium’ of circa 2% - 3% per annum above listed equities.

How is this achievable? The longer term approach and type of target investment can create quite different returns drivers compared to public market investing, such as: being very early in the company’s growth; financial restructuring; and driving operational improvement.

In fact, in recent quarters we have seen the correlation of returns between government bonds and equities turn increasingly positive leading to some anxious moments when both fall at the same time. Investors appear to be stuck between a rock and a hard place. As a result, investors seek “alternatives” to these traditional allocations in search of diversification and sources of returns that are not directly linked to the direction of equity or bond markets.

A unique feature of infrastructure investment is that the scale at which the underlying projects can be sourced is dependent on government procurement plans creating the opportunity in the targeted geographies.

This in turn means there are often capacity limitations. However, the current uncertain economic and market conditions highlight the benefits that such investment can bring to an investor’s portfolio. Investment in Infrastructure offers the potential for attractive risk-adjusted returns with: reliable inflation-linked returns; stable long-term yields, potential for capital growth; defensive characteristics emanating from the provision of essential services; and potential value enhancement through active asset management.

So, what do we mean when we say alternative investments? The term is typically used to describe any asset class that is not equities, fixed income or cash. Historically, hedge funds, private equity, property and infrastructure have been considered as alternative investments and set as a separate asset class from equities and bonds. We would argue that “alternatives” is not an asset class at all, and neither are sub-categories such as hedge funds or private equity.

However, for the less liquid investments, such as the private equity and infrastructure allocations, there a broader considerations: volatility, correlations, beta cannot be measured and compared in the same way when the assets are held via an illiquid framework with idiosyncrasies around cash flows, valuation and return methodologies.

Let’s take a quick look at these investment approaches and what they can bring to an investor’s portfolio.

Hedge funds are probably the most well-known, but most misunderstood, forms of alternative investment. The term hedge fund represents a wide range of different strategies that invest in traditional asset classes, but in a non-traditional way. The types of risk/return profile available from hedge funds vary greatly. For example, there are strategies, such as long/short equity and event driven equity, that carry exposure to similar return sources as found in equity markets. Other approaches, such as global macro and relative value strategies, can be uncorrelated to traditional markets and provide the opportunity for significant diversification of risk away from traditional markets. To get the most out of a hedge fund allocation, investors, or their advisers and managers, need a deep understanding of the characteristics that a particular investment will bring to an overall portfolio. This could be increasing or reducing overall risk, through styles that either act as substitutes for existing risk exposures, or diversifiers away from them.

The risks associated with such investments? Alternative investments are often more illiquid than investments in public markets and can be more expensive to buy and sell than traditional asset classes. This means that they should only be considered as a longer-term investment from a part of the portfolio that will not be required for shorter-term liquidity management. However, the upside of this illiquidity risk is the potential to enhance returns, diversify risk and lower the overall volatility of a traditional portfolio. Non-investment risks can also be apparent with some alternative investments. Appropriate, independent operational due diligence is key to making the right decisions about where to deploy your alternatives allocation.

At Aberdeen, we have a sole focus on asset management and providing a range of investment capability and asset management services to our clients. We are long-term oriented in thinking, very focused on our own 8

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fundamental research and our proprietary due diligence processes – whether an equity that we are buying or a hedge fund manager we are allocating to – and it is important to understand the management of the company, have confidence in their approach and develop a strong, professional relationship. Only then can we build conviction in their ability to perform in line with expectation and make money for our clients.

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Wealth & Finance International | Innovators in Asset Management Guide

Afrinvest Asset Management Limited Afrinvest Asset Management Limited is a subsidiary of Afrinvest (West Africa) Limited, a management majority-owned securities firm involved in investment banking, securities trading, asset management and investment research with a focus on West Africa. Ike Chioke, Managing Director, told us how the firm is helping its clients make the most of the region’s vibrant economy

Afrinvest Asset Management Limited (AAML) is licensed by Securities and Exchange Commission of Nigeria as a Fund/Portfolio Manager.

AAML is a subsidiary of Afrinvest (West Africa) Limited with over two decades experience in investment banking, securities trading, and investment management.

“Of course, there are inherent risks to doing business in these parts but with careful thinking and discipline approach to risk identification and mitigation, the long term prospects remain bright.”

Technology continues to transform the global business landscape – and companies failing to keep up do so at their peril, says Chioke. “Any organisation not open to change is certainly poised towards extinction. And by the way, opportunity no longer knocks, it beeps/clicks. Given recent advances in computing power, development of smart devices and the ubiquity of mobile technology, we reckon that the entire business model for the entire financial services industry has been irrevocably disrupted.

We are therefore keeping track of these advancements with a view to providing financial services that are at the cutting edge of modern technology, as you can see from afrinvestor.com, which provides our clients online and real-time trading access to the Nigerian Stock Exchange.

AAML offers tailor-made asset management services to its target high-net worth, institutional and retail clients with products structured along three key focus areas: privately managed accounts; mutual funds; and general investment advisory.

AAML’s asset class coverage consists of: fixed income; equities and money market; and real estate.

“Our daily activities revolve around gathering of market intelligence to align clients’ portfolios appropriately,” says Ike Chioke, Managing Director.

“We are to be in tune with governmental policies and their implications on managed portfolios or asset classes.”

“The ability to successfully wade through crises is a major indicator in measuring an entity’s resilience. Thus, having emerged stronger from the market crises of 2008/2009, which saw many of our competitors ultimately close shop, reaffirms our then uncommon resolve to abide by strict operational standards of compliance and corporate governance codes.”

Clients find Afrinvest’s Flexibility and excellent client service delivery to be the best points about working with the company, says Chioke.

“Services are customised for our clients, and where generic products or services is available for their needs we are still able to accommodate their peculiarities by tweaking these products and services to meet them.

Chioke feels that a good business must always prioritise client’s needs and utmost satisfaction as they represent the basis for sustainable, long term future growth. “As already stated, our employees are our greatest asset, hence our recruitment processes are thorough and our commitment to on-going training. Our working practices are in strict accordance with our corporate governance codes and in keeping with our regulatory requirements.”

“Since people remain our core asset, our twice-a-week knowledge sharing sessions and in-house trainings guarantee that we continue to meet our commitment to human capacity development. Our philosophy is based on integrity and transparency. Clients are the reason we are in business and they have options so we must provide them quality services to keep us in business.”

Company: Afrinvest Asset Management Limited Name: Ola Belgore Email: obelgore@afrinvest.com Web Address: www.afrinvest.com Address: 27, Gerrard Road, Ikoyi, Lagos, Nigeria.

Telephone: +234 1 270 1680

There are many opportunities in Nigeria and sub-Saharan Africa as a whole, Chioke says. “Given Nigeria’s favourable demographics (with a population of over 170 million people, of which more than half are below the age of 20) and considering its relatively low level of banking penetration (more than 70% of money in circulation is within the informal sector), a well-focused and innovative company is well positioned to take advantage of these opportunities and record tremendous success.

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Wealth & Finance International | Innovators in Asset Management Guide

Risk and Reward: An Age Old Balancing Act Mike Deverell, investment manager and partner at Equilibrium Asset Management, discusses the importance of balancing risk and reward in investment portfolios and casts an eye over what the recent global financial climate means for investors.

When it comes to constructing robust investment portfolios the key, as it has always been, is balancing risk and reward. For different people, varying levels of investment risk are acceptable – it all depends on what they are looking to achieve. Those looking simply to protect themselves against inflation are likely to favour a more risk-averse investment portfolio, whereas those looking to maximise the returns on their investment should be prepared to incorporate a higher degree of risk into their portfolio.

to appreciate the importance of both globalisation and China’s huge economic influence.

As we look at global markets today, we can see both opportunities for investment and areas of risk. Emerging markets, especially those who rely heavily on exporting commodities, are unattractive places to invest at present. Commodities have been performing poorly for some time and in the face of falling demand in China coupled with the prospect of a US interest rate rise, which would increase the cost of these exports, there looks to be little prospect of the situation improving soon.

It’s an old adage, and one that is widely accepted among investors, that taking a long-term view when it comes to investing in stock markets will more than likely to lead to greater returns. It’s not difficult to see why either. Taking a longer-term perspective allows investors to contextualise short-term market turbulence allowing for a clearer and more nuanced view on whether equities and assets across different markets appear to be over-priced or under-priced.

In the globalised world we operate in, these repercussions ripple across financial markets worldwide. Effects have been felt across global stock markets including on the FTSE 100, where around 15 per cent of profits are made in emerging markets, with energy and materials making up around 20 per cent.

Yet speaking in vague terms about taking a long-term view is a big generalisation. To fully maximise the performance of investment portfolios it is important to be flexible; able to spot the opportunities taking a longterm perspective reveals and then move to take advantage of them.

On the other hand, and closer to home, we can see that the relatively strong performance of the UK domestic economy has made British small caps an attractive proposition for investors. Smaller companies in Britain have been yielding good returns throughout the past six months.

In addition to this, they are less exposed to global economic turbulence than larger multinationals, and more exposed to a UK economy which is continuing to grow. Smaller companies are also currently cheaper than large cap stocks so they look to be providing good value with future prospects looking strong.

This could involve moving quickly to take advantage of developments in riskier overseas markets such Japan, or reacting quickly to move funds out of an asset class which is set to perform poorly. An effective approach combines long-termism with a willingness to consider market activity both in the UK and overseas. Avoiding putting all your eggs in one basket is an important part of constructing an effective investment portfolio, however risk averse it may be.

Turning attention back to China, and stocks listed on the Hong Kong stock exchange, a long-term perspective allows us to see that these stocks are trading below their long-term average or what we would consider to be their true value. This may well be explained by the fact that their value has ‘absorbed’ fears and uncertainty surrounding the Chinese economy, which is keeping them low for the time being. Perhaps not appropriate for particularly risk averse investment portfolios, given the uncertainty about the state of the Chinese economy, the current share price nevertheless appears to offer good value.

Exploring global markets – value and risk There’s been plenty for investors to think about this year. Some events having a huge impact, and some surprisingly not. Many thought the UK General election could lead to a hung parliament necessitating a minority government or coalition and consequently causing a prolonged period of instability and uncertainty in the markets. As we saw in the end, the polls were wrong and this situation did not materialise.

Risk, reward and returns Assessing the risk profile of clients is essential to ensuring appropriate investment portfolios are constructed to meet their needs. Pursuing active management strategies, which allow for changes to be made in

On the other hand, we’ve seen the full force of financial turbulence which uncertainty surrounding China’s economy can cause across global markets. We only need to look at the recent ‘Black Monday’ headlines 12

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asset allocation within portfolios, without requiring permission for every change, is also an important strategy. By working in this way, it is possible to react in a timely fashion to developments in markets and asset classes, avoiding a situation where portfolios become unsuitable weighted in light of the latest market developments.

It is this approach which allows flexibility to be married with a long-term perspective, something which is absolutely crucial to ensuring strong portfolio performance. As markets move quickly, and drastic developments can occur almost instantaneously, a flexible approach, combined with investment portfolios with varied asset classes and well-balanced risk, is essential.

Equilibrium Asset Management offer specialist wealth management services and are based out of offices in Chester, Knutsford and Wilmslow. For more information visit www.eqllp.co.uk or follow @EquilibriumAM on Twitter.

The opinions expressed in this article belong to Mike Deverell and do not constitute investment advice from Equilibrium Asset Management.

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Wealth & Finance International | Innovators in Asset Management Guide

Islamic Finance: A Global Force The Islamic financial industry is flourishing – and not just in the Middle East. Barry Cosgrave, senior associate in the finance group at Shearman & Sterling LLP, tells us why.

Having suffered an inevitable slowdown duringthe global financial crisis, Islamic finance is once again on the rise, with growth now being seen outside the traditional heartlands of the Middle East and South East Asia and taking on an ever more innovative and global flavour.

an increased understanding of the requirements of scholars, which has led to a corresponding decrease in costs. This increased understanding has also complemented the general de-mystifying of the industry.

Increasingly Islamic instruments are being employed in innovative ways even where the structures themselves are tried and tested. The SAR7.5bn Sadara Sukuk is a good example of this: the financing formed a part of a larger financing package which closed in two phases with the Sukuk forming phase one and a combined conventional and Islamic finance package forming phase two. The use of Sukuk was aimed at tapping into the vast liquidity that Saudi Arabia has but which its institutions have struggled to deploy in an environment where Shari’a-compliant assets are hard to come by. The debunking of the Islamic finance mystique is well illustrated by the number of conventional institutions that invest in Sukuk. It is estimated that around 60% of Sukuk are subscribed for by conventional institutions who regard Sukuk no differently to other fixed income investments. As a result, Sukuk are as attractive to conventional investors as they are to Islamic ones. The problem has traditionally been the comparatively high costs associated with entering into Shari’a-compliant structures. However, as industry professionals gain an ever-increasing insight into the requirements of Shari’a the burden on scholars has reduced. This has allowed scholars to turn their attention to more innovative asset classes to underpin Sukuk and to look at new structures to address products such as hedging and risk management, feeder funds and structured investments.

The announcement by the United Kingdom government of its inaugural £200m Sukuk issue (Sukuk is the Islamic equivalent of bonds) is perhaps the most high-profile example, but first of a kind issuances by FWU AG in Germany and Tilal Development Company in Oman, as well as innovative structures employed in the Axiata Sukuk in Malaysia and the Sadara Sukuk in Saudi Arabia clearly illustrate that the Islamic finance industry is moving forward.

What has led to this increase in activity? The growth in Islamic finance is down to certain key factors which probably fall into three main categories: the continued strong cash position of Islamic investors; the de-mystifying of Islamic finance products; and the growing familiarity of Islamic finance professionals with the needs of Shari’a scholars which has led to consequential efficiencies in implementing Islamic structures.

Whilst there has been a noticeable improvement in access to liquidity since some of the bleaker days of the recession, it is no secret that capital is still hard to come by for a number of businesses. Islamic investors in the Middle East remain cash rich but lack asset classes in which to invest.

Whilst the Islamic finance market in South East Asia has traditionally been domestic, Middle Eastern investors tend to be more outward looking, which drives overseas investment. However, those investors that need to invest in line with Shari’a principles have often found a lack of assets in which to place their funds, resulting in a stockpiling of cash resources.

Islamic finance continues to be an important part of the global financial industry and the increase in ts popularity has tracked a general increase in the growth of ethical investment products. It is worth noting that a number of the asset classes in which Islamic investors are prohibited from investing (for example tobacco manufacture, the gambling industry and arms production) are the same as those which ethical investment funds avoid. There are obviously some Shari’a-specific prohibitions but the majority of those prohibitions are shared.

Traditionally, Shari’a-compliant instruments have been viewed with a great deal of caution by conventional investors. Much of this was down to a simple lack of understanding of what were perceived to be mysterious structures with complicated names.

However, as an increasing number of Sukuk have run through the maturity cycle, it has provided an illustration of how Islamic instruments bear many of the characteristics of conventional finance products.

If an investor is looking for an ethical alternative to conventional investments then Shari’a-compliant structures can provide a solution.

An increase in the breadth of the Islamic finance offering will only help with this.

Finally, Islamic finance has become increasingly popular as the cost of structuring and documenting Shari’a-compliant business has decreased.

Much of this comes down to Islamic finance professionals having gained

The question is often asked as to whether the global financial crisis could have been prevented by a purely Shari’a-compliant investment environment? It is, of course, impossible to say, but it should be remembered

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that the Islamic finance industry has not been free of problems. There have been a number of high-profile defaults on Islamic instruments and insolvency-type situations for Islamic companies.

However, these scenarios may be expected during times of heightened economic stress and tight liquidity. What is important to note is that Islamic finance structures have performed no worse than their conventional counterparts.

What, then, of the challenges facing the Islamic finance industry going forward? The call for standardisation continues although at a more muted level. With the growing prevalence of Islamic finance structures, documentation and approach has undergone an organic standardisation to complement the more manufactured version evidenced by the ISDA/IIFM Tahawwut Master Agreement (an agreement, published in 2010, designed to govern the legal and credit relationship between two parties embarking on a bilateral trading relationship involving Shari’a-compliant hedging transactions).

The main challenge for the industry will be to drive innovation through the development of a more diverse range of financial products. Islamic finance is still too reliant on Sukuk as its major asset class and there is a particular need for short-term investment instruments similar to the Central Bank of Bahrain Salam programme. Sukuk will always remain the key Islamic investment tool but more variety will be needed in order to maintain growth.

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Sunrise Capital Partners Sunrise Capital Partners manages assets for over 200 individuals and institutions from around the world. “Our challenge each day is to provide each of those investors with outstanding risk-adjusted investment results and equally outstanding customer service that is transparent and highly responsive,” says Jason Gerlach, CEO. “When we launched Sunrise in 1980, our goal was simple – provide an excellent investment experience for our clients by delivering consistently compelling risk-adjusted returns and the best possible client service,” Gerlach says. “We figured if we did those things, the business would at least sustain itself and potentially, achieve even more than that.

“To succeed on all fronts of the asset management business, it’s essential to have a collaborative team of professionals who are all seeking to achieve excellence in everything they do,” says Gerlach. “That’s precisely what Sunrise has worked to build over the past three decades. Our company is structured in a way so that every member of our team is empowered to achieve their fullest potential and share in the rewards that come from our collective effort. Our employees are expected to do something every day to improve Sunrise’s business to always put the interests of our clients first in everything they do. To the extent their skills can be developed to better achieve these outcomes, Sunrise encourages such and where an employee’s skill set warrants a leadership role regarding a particular initiative, they are given such a role and provided with whatever support they need to succeed.

to build nimble and adaptive investment strategies that can achieve solid outcomes in a wide range of environ¬ments. We think our track record demonstrates that we’ve been able to successfully evolve our investment approach as markets have grown and changed over the past 35 years and we’re working very hard to ensure that our strategies continue to be responsive to global markets going forward.”

Gerlach concludes, “on the client service side, investor needs and requirements have changed significantly and thus the challenge is to create products that are in tune with the market and responsive to what investors are demanding. Again, Sunrise’s longevity in our view proves that we’ve been able to do this successfully since our inception and in our view, makes it likely that we can continue to respond to evolving investment demands in the future.”

“Sunrise works tirelessly to deliver outstanding investment results to its clients and serve its clients with the utmost responsiveness and integrity,” says Gerlach,. “Everything we do at Sunrise is done with the goal of achiev¬ing outstanding investor outcomes,” he says, “and our focus going forward is to further improve the investment results we achieve and the customer service we provide. To this end, in recent years we have developed more broadly available, investor-friendly products and better proliferated these port¬folio-enhancing products to more investors. We have done this because ultimately, we think that every investor, whether an individual setting aside a few hundred dollars a month or a large institutional allocating billions of dollars of capital, can achieve better outcomes by integrating truly diversifying alternative investment approaches into their portfolio. We will continue to hone this effort going forward in the hope that Sunrise can enhance as many investment portfolios as possible around the globe.”

“The challenges in the asset management business are multiple and never-ending,” says Gerlach. “To succeed in this business over the long term, one must not only respond to changes but predict them and evolve accordingly. This is what Sunrise has done since its 1980 inception and what it continues to do pres-ently as it looks ahead. On the investment side, markets continually vacillate and surprise and thus the challenge is 16

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