Navigating uncertainties in investment landscape through strong risk assessment 

UOB Asset Management looks at seven key risk areas in investment management and does not allow more than two risks.

As the asset management industry evolves rapidly in response to market challenges and navigates the uncertainties that come with it, it becomes essential for businesses to manage risks and rewards – ensuring a higher success rate based on the robustness of their portfolio constructions.

For private equity fund manager UOB Asset Management, this means looking at seven key risk areas: market risk, management risk, barrier of entry risks, execution risk, financing risk, regulatory risk, and exit risk. To ensure a high success rate, the firm does not let more than two risks happen. At the same time, it has about 40 team members working out of four offices to help manage these risks.

The firm also attributes its recent successes to its “10+1” strategy, wherein it looks at the technology and the know-how in Greater China, and then adopts a model that works to be implemented in the lesser developed areas in Southeast Asia. UOB Managing Director and CEO Kian-Wee Seah believes that the firm’s approach is well-differentiated as there are not many fund managers in the region that actually focus on the ASEAN plus Greater China's strategy.

“We are positioning as the trusted bridge between ASEAN and China. Obviously, we leverage on the UOB extensive network in the region with close to 500 branches in Greater China, and Southeast Asia for deals sourcing for cross border value add,”

Currently, UOB Asset Management manages about US$1.8b, and its focus is 70% growth companies and 30%, early stage venture capital type of deals.

The firm’s accomplishments in the past year has been recognised by the Hong Kong Fund Managers Awards, a prestigious ceremony that aims to recognise and celebrate outstanding achievements in fund management, honouring professionals who have demonstrated exceptional performance, strategic acumen, and a commitment to delivering value to investors.