Speaking about the change, the firm said: “This name change reflects the progress so far, and path forward, in the firm’s Global Growth strategy to strengthen growth in Japan and expand in global markets.” 

Specifically, ‘Amova’ is an amalgamation of the concepts driving the business. According to Nikko AM, the ‘Am’ stands for the core asset management business, the ‘mov’ represents the theme of movement – innovation – and finally ‘ova’ refers to newness (from the Latin nova).

The firm is headquartered out of Tokyo and has presence in 11 countries and regions across four continents.

Following the rebrand, the firm will remain a wholly owned subsidiary of Sumitomo Mitsui Trust Group.

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Stefanie Drews

The firms confirmed that this stake will remain below the first applicable statutory disclosure threshold. 

The partnership, which came into effect earlier this week (25 June), also includes a distribution agreement and the establishment of joint venture. The key aims of the agreement are to enhance both firms’ global investment capabilities and presence.

Stefanie Drews, president of Nikko AM, asserted that the move comes as the firm seeks to enhance its European reach: “Investors in Asia are increasingly looking for private assets, and partnering with an innovative firm like Tikehau Capital with its distinct advantages in uncovering such investment opportunities in Europe is a perfect fit for our own Global Growth strategy.

“It is also a cultural fit, as Tikehau Capital also brings a considerable expertise in investing in decarbonisation, which aligns with our commitment to sustainable investment and stewardship.”

Under the distribution agreement, Nikko AM will gain exclusive distribution rights in Japan principally as well as non-exclusive distribution rights in Asian markets. 

Specifically, this is for Tikehau Capital’s European Direct Lending, Private Equity Decarbonisation and Private Debt Secondaries funds, “as well as any other funds deemed appropriate”.  

The joint venture between the firms, subject to regulatory approval, is for the development of an Asia-focused private asset investment strategies. 

In the first instance, the JV will focus on launching an investment strategy dedicated to decarbonisation in Asia, the firms confirmed, with the initiative set to be located in Singapore. Incorporation and licensing application submissions are slated for the end of this year.  

Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, and Bruno de Pampelonne, chair of Asia, jointly commented that the partnership marks a key milestone for the firm in Asia. 

“With Nikko Asset Management’s extensive distribution network and market intelligence, combined with our robust expertise in private markets, we are well-positioned to enhance our presence and drive growth in this dynamic region. Together, we are poised to create powerful synergies that will contribute to redefine the industry landscape in Asia and deliver exceptional value to our clients.”

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What has your journey to the trading desk been like?

I’ve always worked in the asset management industry, starting my first job at 18 with Scottish Amicable Investment Management in Glasgow. I joined the banking services team and within that team sat the Treasury function consisting of a money market and FX trader. There was always a real buzz of excitement around the trader, and from those early days I had trading in my sights! 

From the banking team at Scot Asset Management, I moved firms in 1999 to take up a role in trade settlements. I then moved internally from settlements to IT for a role as front-office support, mainly looking after anything related to the order management system.

Through my IT role I formed close working relationships with the trading team which ultimately led to the head of trading offering me a job as a desk assistant. I, of course, jumped at the chance to make the move from operations to the front-office. 

Sitting on the desk as an assistant was exciting, listening to the different styles used by the traders and hearing how they interacted with the sell-side. It further cemented my desire to become a trader. An opportunity arose on the desk when one of the international equity traders left so I grabbed it with both hands.  I received on-the-desk training from other members of the team, studied for the Investment Management Certificate (IMC) and on passing that was signed off to trade.  As a junior trader, the sell-side also really took me under their wing and passed on huge amounts of invaluable knowledge and expertise and the relationships I formed then are still going strong today.  

I made the move to London in 2014 to join Nikko Asset Management (Nikko AM), fulfilling a role as senior trader for global markets. Although I had been trading for a long time my background had been mainly in equities so moving to multi-asset was quite a shock to the system and a steep learning curve. Fortunately, the head of desk had over 20 years of experience in fixed income and foreign exchange, so with his training and support I was very quickly brought up to speed on both asset classes. 

What drew you to multi-asset trading?

One of the main things that excited me about joining Nikko AM was the opportunity to expand my skillset from predominantly equity trading to trading a variety of other asset classes.  In addition to still being fully immersed in equity trading, joining Nikko AM has given me exposure to trading a wide range of fixed income solutions, such as investment grade and high yield credit, emerging markets, mortgages, municipal bonds, collateralised loan obligations (CLOs), collateralised mortgage obligation (CMOs) and fixed income derivatives.  

I think it’s always good to challenge yourself and learn new skills and moving to multi-asset has allowed me to do that. No one day is the same and that keeps things interesting. I am always learning. The industry is ever changing and each day presents a new challenge and opportunity. 

How is the skillset different for trading multi-asset to trading one asset class?

Although there are clear differences in asset classes, I think trading fundamentals are consistent across products, so multi-asset traders and specialists really require a lot of the same skills. To trade any asset class, you firstly need to understand the portfolio manager’s investment philosophy, what their time horizon is, how passive or aggressive you need to be to achieve their objective.  You also need to understand liquidity dynamics.  This applies whether trading high yield or emerging markets in fixed income to a UK small cap stock in equities, you need to know which counterparties, trading platforms or strategies to use to get the best outcome. Now more than ever, traders need to be plugged into news events, both stock specific and macroeconomic news and need to have a strong understanding of the read across between markets, for example single name credit default swaps spreads versus the stock or corporate bond spread. For all asset classes, another key skill that a trader needs is the ability to negotiate – most often on price, but frequently on many other issues too from agreeing commission rates on equities to resolving issues that can arise post-trade.

One skill you do need as a multi-asset trader is adaptability. New products are regularly introduced, and it often falls to the trading team to establish the processes and workflows for any new instruments.  This typically involves finding the relevant sell-side contacts, ensuring the IT infrastructure can handle the new instruments and that the flow from front- to-back-office is seamless and robust.  At the same time, there is a need to ensure you become an expert in the trading of that particular instrument. 

Do you expect all institutions to expand into multi-asset eventually?

I think the structure of the trading desk really depends on the company, assets under management and size of the trading team. We’re a modestly sized team of three traders in London, so for us, it’s crucial that everyone on the team can trade all products. For larger companies that have significant daily volume in each individual asset class it can make sense to have specialist traders in each asset class. There can be days where there is low activity in fixed income but we are extremely busy in equities (or vice versa) so the multi-asset trader model works well for us as it allows us to distribute trades evenly across the desk.  

The role of a trader has continued to evolve over time. I tend to get involved in working groups to prepare for the launch of new funds, both in equities and fixed income and meeting with counterparties to continually improve the working relationship between our company and theirs. This often requires time off the desk – so being able to handover ongoing trades in all asset classes to the other traders in the team is a must. 

How can the multi-asset trading process be improved to become more efficient?

Efficiencies on any desk, be it multi-asset or specialist, can be greatly improved through technology.  The level of flow we see across our desk allows us to still be very much high touch and hands on for every trade. However, we are continuously looking at ways we can improve and streamline processes through the use of technology.

   We tend to look at what works well in one asset class and explore if the same logic/process can be applied to another asset class.  For example, whilst we’ve been using portfolio trading in equities for many years, this is now something we’re looking at in fixed income and exploring that offering with our trading platforms and counterparties.  Similarly, in the equity space, we’ve used algo trading for a long time but it’s something we can now make use of in the FX market.

What has evolved the trading experience the most during your time working within the markets?

Electronification of the fixed income markets has been by far the biggest change.  Coming from an equity background, it really was a shock to the system how antiquated fixed income trading felt when I started trading in these markets in 2014.  Even small trades were sometimes executed by voice. Things have moved on immensely.  We can now RFQ dual currency bonds, with both price and FX rates streamed electronically.  We have all-to-all trading which greatly increases liquidity channels.  Even price discovery is helped now, with broker runs and axes being streamed into our OMS.  Of course, not everything has moved to electronic trading. Larger trades are still predominantly executed by voice and some markets like municipal bonds haven’t fully moved to electronic trading, although there is some progress happening there.  Also, in primary markets, we now have platforms where we can enter new issue orders that go straight to the syndicate desks and where we can see real time book updates and allocations consolidated in one place. Hopefully soon it will be possible for those allocations to electronically flow back into the OMS making the workflow fully STP [straight through processed].

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The move means Nikko Asset Management will be able to improve the speed and quality of data integration across asset types, input sources and geographic locations.

FactSet’s fixed income analytics will also allow the asset manager to attain a single global multi-asset covariance matrix and analytics for major markets.

“We are excited to work with FactSet, as they have demonstrated coverage for our diverse range of fixed income investments,” said Chin-Jen Chang, head of global data management and solutions at Nikko Asset Management.

“FactSet’s client service and its excellent data management capabilities also consistently differentiated them from their competitors, and were major reasons Nikko Asset Management selected FactSet.”

Nikko Asset Management will also gain access to FactSet’s services for risk management, portfolio analytics and investment research as part of the deal, alongside an ability to align analytics and data used across risk and performance teams.

FactSet added that as a result of merging risk and performance, increasing regulation and more sophisticated investment strategies, it has expanded its multi-asset class services.

“FactSet’s goal is to provide clients with powerful and flexible solutions for their risk modelling processes,” Alan Bettridge, senior director of sales for APAC at FactSet, commented. “We are delighted that Nikko AM has selected FactSet, validating our premier multi-asset class risk and analytics solutions and recognising us as a leader in the APAC marketplace.”

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Did you know women are scientifically better at trading than men? At least that’s the findings of research undertaken by academics at the UK’s University of Leicester. The study found employing a greater number of female traders reduces the chances of a market crash and increases the regularity of positive trading returns. According to the research, women posses certain qualities that help them carry out the role of a trader more effectively.

Despite this research, and many others highlighting the benefits of a diverse workforce, the number of women in front office roles of investment managers is still in stark contrast to that of their male counterparts.

It is surprisingly difficult to find solid gender ratio statistics for staff at investment management firms. However, Blackrock, Aberdeen Asset Management, Franklin Templeton, Amundi, Fidelity Investments and Union Investment recently agreed for the first time to share data on how many women they employ in senior roles. The results painted quite a bleak picture, with half the workforce being represented by women but just 25% having been appointed to senior management positions.

Perhaps this isn’t surprising, given the inflexible nature of the trading desk and market opening times, along with the stereotypes associated with trading and the 90s ‘Wolf of Wall Street’ image many women on the outside might have of the industry.

But while female buy-siders recognise the difference in their supposed approach to trading, it’s important to highlight at this point that men and women can - of course - possess the same values and qualities for trading.

“Women have a reputation as being more considerate when making investment decisions and more conciliatory in dealing with others, but those aren’t necessarily female qualities - anyone who has those qualities as well as diligence, commitment to client service and an interest in the industry, will do well,” says Nicola Burnside, a fixed income dealer at Aberdeen Asset Management.

Louise Drummond, global co-head of investment execution also at Aberdeen Asset Management, echoes her colleague’s sentiments. “I think women can often be more measured in their thinking and less impulsive in terms of fund management style which provides a good balance and diversity in fund management teams.

Female buy-siders largely agree long working hours, stressful working days, pressure from senior managers to perform well, alongside the challenge of trying to balance family life, are feasible explanations for the gender imbalance among trading desks.

“The fact that you need to be working during market hours definitely means that flexibly working hours are more difficult to accommodate in our industry,” says Drummond.

Though not all women in buy-side trading feel as though they have had to fight their way through the ‘glass ceiling’ to progress in their careers. Angela McLean, senior dealer at Nikko Asset Management, explains despite the industry being more male-dominated she has never felt there has been a barrier to her career progression. “In my first dealing job the head of dealing was female, so I’ve never felt that women could not be appointed to senior roles.  I believe that skills, abilities and character are specific to the person, not the gender.”

The financial industry as a whole has been somewhat tainted by an ‘alpha male’ culture often depicted in films like Martin Scorsese’s ‘Wolf of Wall Street’. With this in mind, it’s easy to see how female professionals could opt for a different industry when embarking on their career path. This culture has not quite been eliminated from the financial sector, according to some female buy-siders, but it is clear firms are trying to stamp this out.

“Having worked on the sell-side in the 90s I've experienced the alpha male culture at its worst. It was definitely a lot more challenging for women back then… There is still an alpha male culture in some parts of the industry and whilst they shouldn't try to mimic those behaviours, it is really important that women are confident in their ability and views,” Drummond explains.

Despite the challenges, women on the buy-side are optimistic for the future and see initiatives asset management firms are putting into place as being able to lure more women into the industry.

Victoria Kelly, head of European trading at Fidelity Investments, explains “as females and minorities move up in organisations, we have seen recruitment diversify outside of traditional avenues and stereotypes, allowing for new hirers to come from a variety of backgrounds and experiences.

“As the work place becomes more flexible and barriers are broken down, I think that anyone can find a role within the industry that suits their ambitions throughout the lifecycle of their career.”

At Aberdeen Asset Management, a support programme was established to help employees who have taken career breaks of two or more years. It aims to mentor, coach and support those coming back to work. For women who are returning to work from maternity leave, an initiative like this is encouraging and often necessary. Aberdeen’s Drummond says she is hoping the programme will make a big difference and go some way towards improving the gender balance.

Other initiatives such as the FTSE 100 gender balance have helped to expose the gaps and spread the word about the positive impact of closing it. Awareness, flexible working schemes and an increase in senior female role models are all growing and should continue to help drive the numbers of women remaining in the city.

Statistics from July 2016’s ‘Female FTSE Report’ show that the overall percentage of women on FTSE boards has increased compared to March 2015. The FTSE 100 gender balance scheme aims to increase this and the statistic proves this has made some difference. It includes a voluntary target of 33% representation of women for the FTSE 100 executive pipeline by 2020.

“Initiatives such as the FTSE 100 gender balance have helped to socialise the gaps and the positive impact of closing it. Awareness, flexible working schemes and an increase in successful female role models have started and should continue to help increase the numbers of women remaining in the city,” says Kelly.

There’s a sense of female buy-siders are banding together to encourage other women to join the asset management sector. The majority of women traders responded positively when asked if they would encourage female friends to join the asset management industry. 

Burnside says she would absolutely encourage women to join the industry, as it’s an interesting, challenging and dynamic environment to be a part of. However, she warns any woman looking for a career in asset management should be comfortable working in an environment where men are still more represented, and she adds the same applies to clients and counterparties too.

McLean explains there’s a real drive for gender diversity in the industry and that’s not just at board level but also across all levels. “The knowledge of this will hopefully encourage more women to move into asset management where they’ll be supported and encouraged to climb the career ladder,” she says.

There is work to be done. Many buy-side firms contacted about the issue of female employees either declined to comment or replied explaining they had no women on the buy-side at all. One thing is certain, those women who are a part of the industry, do not feel as though their gender has particularly hindered their progression in climbing the asset management career ladder. 

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