SRP Asia Pacific Awards Report 2023 by SRP & FOW

ASIA PACIFIC AWARDS 2023

ASIA PACIFIC AWARDS REPORT 2023 structuredretailproducts.com

structuredretailproducts.com

ASIA PACIFIC AWARDS 2023

1.1 Introduction

Contents 1.1

Introduction

Structured Retail Products Limited (SRP), part of the Delinian group of companies, is a provider of structured product data, news and events insights based in London, New York, Hong Kong and Sofia.

1.2

Scope

The company, founded in 2001 counts major global financial services groups, financial regulators, stock exchanges, index providers and professional services firms as clients.

1.3

Methodology

2.0

Management summary: rollercoaster ride

SRP also owns and maintains the specialist industry website StructuredRetailProducts.com, which went live in January 2003, and has since become the leading online information source for the global retail structured products industry. With more than 39 million product listings (as of April 2023), the website is the primary information source for a wide range of businesses involved in the manufacture and distribution of structured investment products globally.

3.0

Trends & Predictions

4.0

Manufacturer Awards

This report is copyright © 2023 Structured Retail Products Limited. All Rights Reserved. Reproduction and distribution of this report in any form without prior written permission is strictly prohibited.

5.0

Distributor Awards

Furthermore, this report may not be:

6.0

Shortlists

7.0

Awards Results

8.0

Analysis of Respondents

sold for commercial gain, either in part or in its entirety; photocopied or printed for multiple use, except for within the organisation for which it was purchased; or distributed electronically or otherwise in a manner other than that described above.

Indemnity The information contained herein has been obtained from sources believed to be reliable. SRP disclaims all warranties as to the accuracy, completeness or adequacy of such information. Use of this report is at your sole risk, and SRP accepts no responsibility for any problems or incidents arising from its use.

Acknowledgements This report would not have been possible without the support of the structured product industry across Asia. SRP would like to thank participants in the SRP survey from 10 January 2023 to 10 February 2023, whose data underpins this report.

SRP Asia Pacific Awards Report 2023 Editorial: Amélie Labbé, Pablo Conde and Summer Wang Data: Veselin Krastev, Lachezara Tsenova, Vanina Kopcheva, Violina Kirilova If you are interested in having a similar bespoke report produced for your organisation, please contact Kevin Leung at +852 3416 6674 or email kevin.leung@structuredretailproducts.com

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ASIA PACIFIC AWARDS 2023

1.2 Scope

1.3 Methodology

This report is concerned with the manufacture of structured products in all product forms including wrappers such as funds, notes, bonds, certificates, deposits and life assurance, and usually linked to equities, foreign exchange, commodities, hybrids and interest rates underlyings.

Description of the Survey

It presents information on structured retail product markets across the Asia Pacific region. Although the term structured product is widely used in the financial community, the term can often have different meanings. For the purposes of this report, a structured product is an investment product providing a predefined return linked to the price of one or more underlying assets. These are usually financial prices, rates or indices, but in rare cases can be sporting or other events. The product can usually be broken down into several separate financial instruments, one of which is usually a derivative product. Where a derivative is not used, the product will use derivative-based investment strategy or computation to provide the return. Although simple warrants, listed options and futures, and delta one products such as tracker funds, exchange-traded funds and exchange-traded notes are excluded, reference to these products may be made where relevant. The report is based on both quantitative and qualitative analysis. StructuredRetailProducts.com (SRP) surveyed 484 structured products distributors across Asia Pacific between 10 January 2023 and 10 February 2023, collecting data on structured product manufacturers from the point of view of their distributor clients. The results from the survey form the basis of this report. Details of both the quantitative and qualitative analyses are available in the Methodology section of the report.

The report provides the following information: the scope, methodology and management summary of the report’s key findings; an analysis of the structured products market in the Asia Pacific region based on survey responses; a separate analysis of the manufacturers by asset class; and an analysis of top distributors’ awards.

structuredretailproducts.com

StructuredRetailProducts.com (SRP) surveyed Asian structured products distributors between 10 January 2023 and 10 February 2023, receiving 484 responses. The survey comprised three areas of investigation:

Part 1 Voting We asked respondents to the survey to specify five investment banks that they use for hedging purposes, for each asset class in which the respondent was active. They also had to specify the volume of business for each asset class and the percentage split by bank. Their responses made up 25% of the final score for the shortlist. The remaining 75% of the score was based on data submissions, sent by individual banks for the time period between 1 January 2022, and 31 December 2022.

Part 2 Data validation Captive votes and those representing internal transaction flows were excluded from the results. This includes votes cast by distributors that are part of banking groups which use their parent group for 100% of their activity and internal structuring desks. Also, votes were not included in the survey where: Providers voted for themselves. We could not confirm the identity of the respondent. A respondent voted more than once and we could not resolve the duplication. The survey results underpinned the 2023 SRP Asia Pacific Awards, which were handed out on 03 May 2023 during the 10th Annual Asia Pacific Conference. For the purpose of this report, the scores for each key service category for the individual banks are calculated by averaging. Service scores are, therefore, suggestive of the level of service that a client might expect to receive when working with an investment banking counterparty.

structuredretailproducts.com

ASIA PACIFIC AWARDS 2023

2.1 Management Summary: rollercoaster ride It’s been a funny few years. Looking back on 2020 and the state of the world then, I wouldn’t have known where to start to describe activity levels and market morale. Fast-forward three years and the world is in a different place, with the pandemic progressively being tidied away to the distant memory drawer. The Asia Pacific region recovered fast and well. Product issuance and sales volumes undeniably took a hit in 2020, but market participants regrouped and adapted to the new normal. So much so that outstanding sales volume in 2021 recorded a high not seen in years (US$921 million) and outstanding product issuance reached a record 74,000 products in 2022, after years of flatlining. The market is known for its agility and flexibility, responding quickly to market events. A key takeaway in nearly every survey is that APAC is moving onwards and upwards. The region itself is on the receiving end

of positive asset flows and regional growth, while the investor base there is increasingly savvy and hungry for new products. Nowhere has this been more visible than in South Korea, which in recent years had had the lion’s share of the local structured product market (65% in 2019). While activity has slowed down considerably there, in part due to a tightening of regulation – as identified by some respondents to this year’s Asia Pacific awards survey* - it is still a force to be reckoned with. One awakening giant is Hong Kong SAR, which saw total sales volumes in 2020 nearly double on 2019 levels, boosting their respective market shares. It is growing faster than its Korean counterpart, with a 40% market share in 2022 year-to-date – against 30% for South Korea. On the sales front, it is a similar story, with Hong Kong reporting just under US$8 billion in sales in 2022, nearly one-third more than South Korea.

1000000

100,000

900000

90,000

800000

80,000

700000

70,000

600000

60,000

500000

50,000

400000

40,000

300000

30,000

200000

20,000

100000

10,000

0 2020

Outstanding sales volume (USDm) (LHS)

2021

2022

Outstanding products issuance (RHS)

Source: Structuredretailproducts.com

120,000 100,000 80,000 60,000 40,000 20,000 0 Hong Kong

Japan 2019

South Korea 2020

structuredretailproducts.com

2021

Taiwan

2022

Source: Structuredretailproducts.com

China’s influence in the region is undeniable. Hong Kong SAR’s links to this structured product giant and the two-way relationship that exists certainly underpin its growing presence. As one survey participant said, there is currently “big potential for China and HSI-linked derivatives”.

Outstanding Issuance and Volumes 2019-2022 YTD

2019

Market by total sales (USDm) 2019 - 2022 YTD

For its part, Japan’s market share has been narrowing in recent years, dropping to roughly 5% in 2022, half the level seen in 2019. Total sales have also taken a hit, at one-third (US$5.9 billion) of the levels seen in 2020 and 2021 (nearly US$15 billion). One survey participant said: “[Market conditions have been] very severe and challenging, due to the adverse market situation and [the impact of the Japanese Financial Services Agency/Japan Securities Dealers Association tough guidelines on distributors]”. The JFSA also released rules around knock in/knock out for structured products have also pushed some issuers away, leading to the market drop described previously. Finally, Taiwan’s market share has risen, growing to 20% in 2022, double its slice in 2019. However, sales activity has dipped, with the US$41 billion seen last year half the high of 2021 (US$86.5 billion) on par with pandemic levels. The market saw a huge surge in issuance towards the latter part of 2020, in part of the back of regulation

structuredretailproducts.com

that has been quite accommodative to the development of structured products.

‘Polycrisis’ Most markets globally have grown at a steady clip, jumping at the opportunity for recovery, with many Asian markets as notable examples. The ongoing political and commercial tug of war that is the China-US relationship is still a market feature, as is uncertainty as to which direction this battle is going. This has happened in the past couple of years against a backdrop of volatility, uncertainty and policy changes, as outlined by many respondents to this year’s Asia Pacific survey. In previous years’ surveys, the search for yield in the low rate environment was also a key (ongoing) concerned shared across markets and jurisdictions, and this went hand-in-hand with innovation in terms of underlyings. “A potential recession that could cause further market disruption” was outlined as a challenge in this region for the next 12 months, while another noted that “rebuilding confidence in principal at risk structured products, [and] guaranteeing attractive pricing for sales force and for clients” was also something for issuers to bear in mind.

ASIA PACIFIC AWARDS 2023

TaDa chatbot

Market share by sales 2019 - 2022 YTD 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2019

2020 Hong Kong

2021 Japan

South Korea

2022

Taiwan

Developed for use on the Symphony platform and using ipushpull technology, ETD’s TaDa chatbot helps you improve efficiency and better resolve post-trade risk, clearing, settlement and regulatory reporting issues.

Source: Structuredretailproducts.com

Bear to bull Incidentally, this economic, political and financial context is one where structured products can come into their own. After years where investors were spoilt for choice with capital-protected products, it is now harder for issuers to offer attractive principal-protected notes, leading to potential product innovation. It also encouraging local market players to seek out international opportunities, in effect to see if the grass is greener somewhere else. Of note, according to several survey voters, is the fact that the “covid restrictions [in the Chinese] market have impacted the performance of Asian stocks”. Another sell-side SRP Asia Pacific survey voter agreed: “The HK, China and US stock markets have moved from global correction toward recovery. In the clients’ view, [there has been a] change from conservative to bullish, they have become more aggressive toward stocks from local and overseas markets. They added: “They would consider products with a participation feature or with decent yield. Stocks with high volatility are most likely to be chosen as underlying assets.”

This is echoed by a respondent from Malaysia who said: “Lacklustre Malaysian market are forcing my traders to explore foreign markets like Hang Seng. Another challenge is the change of mindset from value investing to scalping strategy.” Another individual highlighted that recent high interest rates, which have also been a feature of many Asian financial markets, would translate into a “shift towards rates/credits products” though as another said, this would lead to increasing competition with bank products linked to higher deposit rates. “The Federal Reserve’s interest rate hiking and an inflationary environment continue to pose broad based downside risks on the equity side,” warned one market participant. “China reopening is a theme that has investors’ attention currently. Structures can be used to leverage on this trend.” As such, other respondents listed instruments that they believe could be an answer to their demands. “Expect the equity market to pick up,” explained one sellside respondent from Southeast Asia. “[There will be a focus on] recovery structures and hence the introduction of new payoffs focusing on providing customers some relief.”

*SRP’s Asia Pacific survey 2023 was conducted between January 2023 and February 2023, and gathered 473 responses.

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ASIA PACIFIC AWARDS 2023

3.0 Trends and Predictions What will the most popular payoffs be over the next 12 months for your market?

Volatility - based Investments 19%

Credit 5%

Which of the following investment themes will be the most prominent over the next 12 months?

Worst Of Option 16% Environmental Social Governance (ESG) 15%

Accrual 12%

Shark Fin 2% Reverse Convertible 2% Range 1%

Structured Warrants 6%

Autocallable 30%

Protected Tracker 8%

Proprietary/ Custom Indices 10%

Dual Currency 4% Equity - Developed Markets 33%

Equity - Emerging Markets 12%

The SRP Asia Pacific Awards Survey 2023 outlined 10 different payoff mechanisms that respondents voted for as their most popular choice. Returning this year and taking 44% of the vote, the autocallable was listed as the most popular payoff over the upcoming 12 months. This is an increase of 14% when compared to the previous year’s results. The second position was taken by two payoffs – digital and callable - collecting 8% of the total vote each. While digital saw a 12% decrease on last year’s level, the callable payoff increased by 3%. Surprisingly, the accrual and sharkfin payoffs surged to third place after amassing 7% of the votes each, taking the position

Digital 20%

Callable 5%

from worst of option. But while sharkfin recorded a 5% increase in preference levels, accrual recorded a drop of 7% compared to the last year’s values. Most of the votes for these payoffs were submitted by Malaysian, Hong Kongese and South Korean respondents.

According to the SRP Asia Pacific Awards Survey 2023, the most prominent investment theme in the next 12 months remains equities in developed markets. It retains the top spot in the rankings, collecting 32% of the vote in the survey (33% in the 2022 figures).

Structured warrants climbed to the fourth position with 11% of the survey vote, a 5% increase from the 2022 survey. Although interest in ESG policies and investments has grown, this thematic saw a slight drop from 15% in 2022 to 10% in this year’s results.

The fourth place was taken by the range payoff, collecting 5% of the survey vote, primarily from Malaysia. It also saw an increase in its preference level (last year: 1%).

Equities in emerging markets took second place, with 22% of the votes. It rose by 10% surpassing the volatility-based investments theme, which dropped to third position with 13% of responses.

The credit investment theme gathered 8% of the votes, which translated to a 3% increase , while proprietary/ custom indices saw a decline of 7% (from 10% in the 2022 in figures).

Survey data also showed that well-known payoff mechanisms such as dual currency and reverse convertible are expected to be less popular over the upcoming months.

structuredretailproducts.com

ASIA PACIFIC AWARDS 2023

4.0 Manufacturer awards Best House, South and Southeast Asia

These awards are calculated on the basis of the following factors. Survey of market All respondents will vote for the top five manufacturers in each category. The total number of votes for each individual candidate will be used for shortlisting and will have a 25% weighting. Submission of product data Each candidate will supply product brochures or term sheets with full sales and performance data per product, issued between 1 January 2022 and 31 December 2022. The shortlist will be determined by two factors – survey of market votes (25%) and data submission (75%). Editorial submission Each shortlisted manufacturer will need to submit an editorial piece of up to 400 words.

Best House, Japan

100

0 Barclays

Société Générale

Kenanga Investment Bank

Morgan Stanley

Citigroup

Société Générale

Maybank

Barclays

Credit Suisse

BNP Paribas

Morgan Stanley

Goldman Sachs

The winner will be selected by an independent panel of judges convened and chaired by SRP.

Best House, Equity

Best House, Asia Pacific

Best House, South Korea

Best House, Hong Kong

100

0 Société Générale

Barclays

Credit Suisse

Citigroup

Morgan Stanley

Best House, Asian Equity

0 Barclays

Goldman Sachs

Société Générale

Credit Suisse

Citigroup

Goldman Sachs

Morgan Stanley

Best House, US Equity 100

100

0 Société Générale

Barclays

Citigroup

Goldman Sachs

JP Morgan

Citigroup

Goldman Sachs

JP Morgan

Citic Securities

Credit Agricole

Morgan Stanley

HSBC Bank

Credit Agricole

Barclays

Société Générale

UBS

Huatai International

BNP Paribas

Best House, Taiwan

100

0 Société Générale

0 Barclays

Société Générale

Citigroup

Morgan Stanley

UBS

structuredretailproducts.com

Société Générale

Credit Suisse

structuredretailproducts.com

UBS

ASIA PACIFIC AWARDS 2023

5.0 Distributor awards

Distributor, South and Southeast Asia Oustanding Sales Volume & Issuance 2019 - 2022

The award for Best Distributor is based on full sales and performance data per product distributed by the buy-side between 1 January 2022 and 31 December 2022. The strike date is relevant for best sales and maturity date is relevant for best performance. The results of both are amalgamated and put towards the best distributor award. Sales volume represents total sales invested rather than the notional amount, and performance is the annualised return an investor would have received with a buy-and-hold approach from the strike date until maturity for a product. Each product’s performance is weighted according to its sales volume to give a weighted average performance of the distributor’s portfolio of maturing products for the period.

Sales Volume & Issuance 2019 - 2022

25,000

15,000

20,000

12,000

15,000

9,000

10,000

6,000

5,000

3,000

2019

2020

2021

Total Volumes (USDm) (LHS)

2022

Oustanding Sales Volume & Issuance 2019 - 2022

Sales Volume & Issuance 2019 - 2022

1,000,000

75,000

800,000

60,000 45,000

600,000 400,000

30,000

200,000

15,000

2019

2020

2021

Total Volumes (USDm) (LHS)

2022

84,000

150,000

63,000

100,000

42,000

50,000

21,000

2019

2020

2021

2022 Total issues (RHS)

Fubon Bank

100

2000

1500

0 Kiatnakin Phatra Securities

Krung Thai Bank

360 ONE (Formerly IIFL Wealth)

Edelweiss Financial Services

Oustanding Sales Volume & Issuance 2019 - 2022

40,000

30,000

Bank SinoPac

Hang Seng Bank

2022 Total issues (RHS)

360 ONE Kiatnakin Phatra (Formerly Securities IIFL Wealth)

Edelweiss Financial Services

Krung Thai Bank

UOB

Sales Volume & Issuance 2019 - 2022 25,000

HSBC Bank

60,000

100,000 90,000

20,000

50,000

80,000 70,000

15,000

40,000

60,000

30,000

50,000

10,000

20,000

Cathay Securities Investment Trust

2021

0 UOB

50,000

Fubon Bank

2020

Top 5 Distributors by Weighted-Average Performance (%)

40,000

20,000

30,000

5,000

10,000 Cathay Securities Investment Trust

2019

Total Volumes (USDm) (LHS)

2500

0 Bank SinoPac

Total issues (RHS)

60,000

Hang Seng Bank

5,000

Best Distributor, Hong Kong

10000

HSBC Bank

10,000

1,000

25000

2,000

105,000

5000

15,000

500

250,000 200,000

100

15000

3,000

Top 5 Distributors by Weighted-Average Performance (%)

20000

20,000

1000

Total Volumes (USDm) (LHS)

30000

25,000

126,000

Total issues (RHS)

35000

5,000 4,000

300,000

Top 5 Distributors by sales (USDm)

30,000

Top 5 Distributors by sales (USDm)

Best Distributor, Asia Pacific

6,000

20,000

10,000

2019

2020

2021

Total Volumes (USDm) (LHS)

2022

2019

Total issues (RHS)

2020

2021

Total Volumes (USDm) (LHS)

Top 5 Distributors by sales (USDm)

2022 Total issues (RHS)

Top 5 Distributors by Weighted-Average Performance (%) 100

35000 30000

25000 20000

15000

10000 20

5000

0 HSBC Bank

structuredretailproducts.com

Hang Seng Bank

structuredretailproducts.com

Bank of China (Hong Kong)

Wing Lung Bank

Bank of East Asia

HSBC Bank

Bank of China (Hong Kong)

Wing Lung Bank

Hang Seng Bank

Bank of East Asia

ASIA PACIFIC AWARDS 2023

Best Distributor, Japan

Best Distributor, South Korea

Oustanding Sales Volume & Issuance 2019 - 2022

Sales Volume & Issuance 2019 - 2022 3,000

730,000 720,000

1,400

120,000

30,000

120,000

30,000

2,500

25,000

1,200

100,000

25,000

100,000

25,000

2,000

20,000

80,000

20,000

80,000

20,000

1,500

690,000 680,000

1,000 800

15,000

1,000

10,000

500

5,000

600 400

670,000 660,000 650,000

2019

2020

2021

Total Volumes (USDm) (LHS)

2022

200

2019

Total issues (RHS)

2020

2021

Total Volumes (USDm) (LHS)

2022

15,000

60,000

15,000

10,000

40,000

10,000

20,000

5,000

20,000

5,000

0 2019

Total issues (RHS)

2020

2021

Total Volumes (USDm) (LHS)

Top 5 Distributors by Weighted-Average Performance (%)

1200

100

1000

60,000 40,000

Top 5 Distributors by sales (USDm)

400 200

0 Daiwa Securities

Tokai Tokyo Securities

Imamura Securities

IwaiCosmo Securities

Imamura Securities

Daiwa Securities

80 60

3,000

40 20

Sales Volume & Issuance 2019 - 2022 25,000

90,000

Hana Daetoo Securities

Meritz Securities

Mirae Asset Securities

Shinhan Investment

KB Investment & Securities

Oustanding Sales Volume & Issuance 2019 - 2022

100,000 90,000

80,000 20,000

70,000

80,000 70,000

60,000

15,000

50,000

Meritz Securities

Hana Daetoo Securities

KB Investment & Securities

Shinhan Investment

Mirae Asset Securities

60,000

40,000

10,000

30,000

5,000

20,000 0

0 2021

Total Volumes (USDm) (LHS)

350.00

1,400

300.00

5,000

10,000

1,600

12,000

10,000

30,000

20,000

14,000

25,000

15,000

40,000

2019

Total issues (RHS)

2020

2021

Total Volumes (USDm) (LHS)

8,000

1,000

8,000

800

6,000

600

4,000 2,000 0

2022

2019

2020

2021

Total Volumes (USDm) (LHS)

Total issues (RHS)

Top 5 Distributors by Weighted-Average Performance (%)

Top 5 Distributors by sales (USDm)

1,200

10,000

2022

Sales Volume & Issuance 2019 - 2022

30,000

20,000

50,000

2020

Best Distributor, India

Oustanding Sales Volume & Issuance 2019 - 2022

2019

Total issues (RHS)

100

4,000

Mitsubishi UFJ Morgan Stanley Securities

Best Distributor, Taiwan

2022

2,000

Tokai Tokyo Securities

IwaiCosmo Securities

2021

Top 5 Distributors by Weighted-Average Performance (%)

Top 5 Distributors by sales (USDm)

1,000 Mitsubishi UFJ Morgan Stanley Securities

2020

Total Volumes (USDm) (LHS)

5,000

600

2019

Total issues (RHS)

7,000

2022

6,000

800

2022

500 450 400

250.00

350 300

200.00

250

150.00

400

100.00

200

50.00

0.00

200 150 100 50 2019

Total issues (RHS)

2020

2021

Total Volumes (USDm) (LHS)

2022 Total issues (RHS)

Top 5 Distributors by Weighted-Average Performance (%)

Top 5 Distributors by sales (USDm)

100

7,000 6,000

5,000 4,000

3,000

2,000

1,000

E.Sun Commercial Bank

Bank SinoPac

Cathay Securities Investment Trust

Fubon Bank

DBS Bank

Sales Volume & Issuance 2019 - 2022

30,000

710,000 700,000

Oustanding Sales Volume & Issuance 2019 - 2022

Fubon Bank

Cathay Securities Investment Trust

Bank SinoPac

E.Sun Commercial Bank

DBS Bank

structuredretailproducts.com

360 ONE (Formerly IIFL Wealth)

Edelweiss Financial Services

structuredretailproducts.com

IIFL Finance

Motilal Oswal

Centrum Capital

Motilal Oswal

Edelweiss Financial Services

360 ONE (Formerly IIFL Wealth)

IIFL Finance

ASIA PACIFIC AWARDS 2023

6.0 Shortlists 6.1 Manufacturer Awards

6.3 Service Providers

Best House, Asia Pacific

Best House, Japan

Best House, Taiwan

Best Index Provider

Best Pricing and Risk Analytics Provider

Barclays Citi Credit Suisse Goldman Sachs Morgan Stanley Société Générale

Barclays BNP Paribas Credit Suisse Goldman Sachs Morgan Stanley Société Générale

Credit Agricole Credit Suisse HSBC Bank Morgan Stanley Société Générale UBS

China Securities Index Hang Seng Indices Korea Exchange MSCI S&P Dow Jones Indices

Avaloq Bloomberg Horizon Murex Refinitiv

Best Issuance Platform

Best Proprietary Index Provider

Best House, Equities

Best House, South and Southeast Asia

Best House, South Korea

Barclays Citi Credit Suisse Goldman Sachs Morgan Stanley Société Générale

Barclays Citi Kenanga Investment Bank Maybank Morgan Stanley Société Générale

Citic Securities Citi Credit Agricole Goldman Sachs JP Morgan Société Générale

Contineo FinIQ EQ Connect Goldhorse Capital Société Générale - SG Markets SP UBS – Equity Investor

Barclays BNP Paribas Goldman Sachs J.P. Morgan Société Générale

Best House, US Equity

Best House, Asian Equities

Best House, Hong Kong SAR

Barclays Citi Morgan Stanley Société Générale UBS

Barclays Citi Goldman Sachs JP Morgan Société Générale

Barclays BNP Paribas Huatai International Société Générale UBS

6.2 Distributor Awards

Best Structured Product and Derivatives Exchange Australian Securities Exchange Hong Kong Exchanges and Clearing Korea Exchange Japan Exchange Singapore Exchange

6.4 Other Awards

Best Distributor, Asia Pacific

Best Distributor, South & Southeast Asia

Best Performance, South & Southeast Asia

Best Educational Initiative

Most Innovative Product

Deal of the Year

Bank SinoPac Cathay Securities Investment Trust Hang Seng Bank HSBC Bank Fubon Bank

360 ONE (Formerly IIFL Wealth) Edelweiss Financial Services Kiatnakin Phatra Securities Krung Thai Bank United Overseas Bank

360 ONE (Formerly IIFL Wealth) Centrum Capital Edelweiss Financial Services Motilal Oswal United Overseas Bank

Based on editorial submission

Best ESG Solution

Personality of the Year

Best Warrant Provider

Based on editorial submission

Based on votes in the APAC survey

Based on editorial submission

Best Performance, Asia Pacific Bank SinoPac Cathay Securities Investment Trust E.Sun Commercial Bank Mega International Commercial Bank UBS

structuredretailproducts.com

ASIA PACIFIC AWARDS 2023

7.0 Awards Results 7.1 Manufacturer Awards

7.3 Service Providers

Best House, Asia Pacific

Best House, Japan

Best Index Provider

Best Structured Product and Derivatives Exchange

Société Générale

Barclays

MSCI

Hong Kong Exchanges and Clearing Limited

Best House, Equities

Best House, South Korea

Best Proprietary Index Provider

Best Pricing and Risk Analytics Provider

Société Générale

CITIC Securities

Société Générale

Murex

Best House, Asian Equities

Best House, Hong Kong

J.P. Morgan

BNP Paribas

Best House, US Equities

Best House, Taiwan

Barclays

Crédit Agricole

Best Issuance Platform FinIQ

Best House, South and Southeast Asia Maybank

7.2 Distributor Awards

7.4 Other Awards

Best Distributor, APAC

Best Performance, South Korea

Best Educational Initiative

Personality of the Year

HSBC

IBK Securities

Jung-Jin Yoon (Société Générale)

Best Performance, APAC

Best Distributor, HK

NagaWarrants’ prize competitions, tournaments and ‘sector filter’ capabilities (Kenanga Investment Bank)

Fubon Bank

HSBC

Best ESG Solution

Deal of the Year

Best Distributor, South & Southeast Asia

Best Performance, HK

Blackrock Dynamic Multi-asset ETF VT5 Index (Société Générale)

Booster Embedded A-Share Solution (Huatai International)

United Overseas Bank

HSBC

Most Innovative Index

Best Warrant Provider

Best Performance, South & Southeast Asia

Best Distributor, Taiwan

SGI Diversified Multi-Asset Enhanced Index (Société Générale)

Société Générale

Centrum Capital

Fubon Bank

Best Distributor, Japan

Best Performance, Taiwan

Mitsubishi UFJ Morgan Stanley Securities

Fubon Bank

Best Performance, Japan

Best Distributor, India

Tokai Tokyo Securities

360 ONE (Formerly IIFL Wealth)

Best Distributor, South Korea

Best Performance, India

MERITZ Securities

Centrum Capital

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ASIA PACIFIC AWARDS 2023

SRP APAC personality of the year The Apac Personality of the Year Award 2023 was presented to Jung-Jin Yoon at the 10th Apac Awards Ceremony, which took place on the evening of Wednesday 3 May at the Hilton Singapore Orchard, Singapore. In 2013, Yoon relocated to South Korea overseeing the third-party distribution after SG obtained the relevant regulatory licences for its onshore operation where structured products were the first leg of the local expansion, followed by market access and flow activities. “It’s a team that’s very dear to me,” Yoon recalled, referring to the local setup. “We started from scratch - building the local infrastructure, transferring the activities from HK, and repositioning our franchise. The award was presented to Samuel Henry on behalf of Yoon

Yoon, managing director, head of cross-asset sales & structuring for Apac at Société Générale (SG) received the highest number of votes from respondents to the SRP Apac Awards Survey 2023. Growing up in Montreal and New Jersey, Yoon, a native of South Korea, returned to the country to pursue his bachelor’s in business administration at Yonsei University in 2002 and served a two-year conscription before kicking off his career at Macquarie Bank as a corporate finance analyst in Seoul in 2007. One year later, the recent graduate, who enjoyed working in an international environment, joined SG’s Hong Kong office because of a close acquaintance who introduced him to global markets, specifically the derivatives space. “It was a simple decision taken 16 years ago. I’m quite happy where I am right now,” Yoon told SRP. The word ‘natural’ was used several times when Yoon looked back at his trajectory at SG where he started in equity derivatives (EQD) sales support for the Korean market and now manages approximately 100 crossasset sales and structurers in Apac. The cross-asset set up was launched as part of a global shift at the French bank triggered by then SG boss Christophe Miané in 2009.

“Once you have better client proximity, it leads to better discussions on product innovation and an enhanced understanding of market opportunities. I’m hoping that we are able to replicate this in every market.” Yoon accesses market opportunities from three main angles - product opportunities, client demand and regulatory framework. “In Korea, demand for structured products was high as there was a surge in demand from retail investors wanting a boost in income amid very low interest rates back then, not to mention that the regulatory environment was less strict compared to what we see today,” he said. Initially the market was “very binary” and products available were autocalls either with or without correlation on single stocks.

is,” he said, adding that the strengths are reflected in product innovation and capabilities besides an ability for sales to tactically pivot based on market conditions.

when rates were near zero,” he said. “This overall transition is taking longer than what we had hoped for. It’s a key focus on our agenda for this year.”

After nearly five years in Seoul, Yoon went back to Hong Kong in late 2017 where he embarked on a “natural transition” to regional roles with step-by-step exposure from private banks to consumer banks in Singapore and Hong Kong SAR, then to Taiwan, China, Japan and then to institutional coverage.

In terms of traded notional of structured products, fixed income underliers were up approximately 50% while equities including multi-asset were down around 20% in Apac in Q1 23 year-on-year.

Commoditisation “The Apac market has clearly grown, but at the same time it’s become much more challenging in some markets over the past 10 years,” he said. One example is the massive standardisation and automation of structured products, which’re reflected in smaller trades, higher volumes, less direct interaction with clients but more with third-party multi-issuer platforms, according to Yoon.

Apart from fixed income, quantitative investment strategies (QIS), environmental, social, and governance (ESG), thematic indices and hybrids were little known back 10 years ago. Typically, each year sees one to two products with a strong market impact - whether it be on a tweak payoff or a new concept, according to Yoon.

“Certainly, the business is more operationally-efficient today but also too commoditised leading to somewhat of a binary market and a loss in sales DNA,” he noted.

“Unfortunately, given the context of the markets - I don’t think we’ve had that in the past year. [This] is something we need to rectify,” he said.

Ten years ago, one client sent one email for a single pricing request at a time. Nowadays, a batch of 100 pricing requests takes no more than a few minutes.

Cautious approach

“The sheer capacity to mass price and market these products came much faster than most envisioned,” said Yoon.

Post-Covid 19 Since 2020, the industry has shifted towards fixed income from equity.

“There was no big shift in investment sentiment and consequently this a very standardised flow business,” Yoon said. “Even with a cross asset mandate, there was not much to explore initially as a significant portion of market investments were in equities.”

“While we hope to bring more product impact on this space, it’s somewhat disappointing to see that not many Asian investors really embrace long term structures, which thereby leave limited room for product innovation,” said Yoon.

Looking back, SG was one of the pioneers in building up the interest on fixed income among high-net-worth individuals in South Korea, according to Yoon.

The momentum on fixed income has slowed down this year whereas the rebound on Asian equities hasn’t fully materialised.

“It was during my time in Korea where I experienced the value of being cross-asset and how powerful that setup

“Q1 23 was not an easy one. A lot of the markets continue to trade the same products that were traded

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“The Japanese market was heavily hit due to the ongoing regulatory scrutiny since H2 22, which we expect clarity going into Q3 23. It remains a key pillar for SG in conjunction with Korea, Singapore and Greater China,” he said.

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Structured product sales is a complex product type that requires a mix of sales capabilities, product depth and understanding of the trading fundamentals. “It’s a role that needs to be very risk-conscious, whereas we have seen numerous profiles in the market who approach this business from a brokerage standpoint, which we don’t find to be a sustainable model,” he said. For many investment banks, structured products are no longer a business driven by market share, according to Yoon. In February, SG rejigged its cross-asset franchise in Apac which is currently led by Yoon by merging its structuring and sales teams - the sales team is mostly localised in the bank’s coverage locations while structuring has been consolidated in Hong Kong SAR and Tokyo. “We want the structuring team to be client-facing and having the proximity as the sales do,” he said. “Some banks have structuring and sales governance separately whereas some are combined. Ultimately, it’s a matter of how you align the business strategy.”

ASIA PACIFIC AWARDS 2023

8.0 Analysis of respondents South Korea 22%

Taiwan 3% Other 3% Australia 4% Germany 3%

Singapore 15%

Hong Kong SAR 26% Malaysia 20% Japan 4%

COUNTRY

NUMBER OF RESPONDENTS

COUNTRY

NUMBER OF RESPONDENTS

Australia

Singapore

China

South Korea

102

Germany

Taiwan

Hong Kong SAR

125

Thailand

India

United Kingdom

Japan

Grand Total

473

Malaysia

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