1 00:00:00,160 --> 00:00:05,040 Speaker 1: This podcast is brought to you by HKX, Asia's ETF marketplace. 2 00:00:05,440 --> 00:00:08,320 Speaker 1: Well you'll find a gateway to liquidity and a diverse 3 00:00:08,360 --> 00:00:12,920 Speaker 1: selection of opportunities across asset classes, sectors, and themes in 4 00:00:12,960 --> 00:00:16,720 Speaker 1: Asia and beyond. Search HKX to learn more. 5 00:00:19,600 --> 00:00:23,000 Speaker 2: Good morning, good afternoon, good evening, and good nights wherever 6 00:00:23,040 --> 00:00:25,640 Speaker 2: in this vast, beautiful planet. You are joining us from 7 00:00:25,880 --> 00:00:30,920 Speaker 2: Welcome to Tiger Money, a Bloomberg podcast about investing, stocks, funds, 8 00:00:30,920 --> 00:00:34,960 Speaker 2: and everything in between, from investment tips, care, your advice, 9 00:00:35,680 --> 00:00:38,280 Speaker 2: love and life hacks, and maybe some tips in the kitchen. 10 00:00:38,520 --> 00:00:43,800 Speaker 2: This conversation is strictly non confidential. We're your hosts, strictly 11 00:00:43,840 --> 00:00:46,360 Speaker 2: all talk, no money. David and Less and with me 12 00:00:46,479 --> 00:00:51,240 Speaker 2: is ETF Sage in Current and Future Tiger Mom, Rebecca Sin. 13 00:00:51,720 --> 00:00:54,720 Speaker 3: Thank you David. Today we're excited to have Miss Susan Chan, 14 00:00:55,000 --> 00:00:57,160 Speaker 3: head a ATA Pacific at black Rock join us for 15 00:00:57,240 --> 00:01:00,720 Speaker 3: this conversation. Susan is responsible for I THINK the Asia 16 00:01:00,720 --> 00:01:05,200 Speaker 3: Pacific region, serving the wealth and institutional investor via black 17 00:01:05,319 --> 00:01:11,039 Speaker 3: Rock's Active Index ETF, alternative and technology offering. She's a 18 00:01:11,080 --> 00:01:14,400 Speaker 3: mother of four, loves to cook and has perfected the 19 00:01:14,560 --> 00:01:17,720 Speaker 3: Patti press, a classic Prins dessert that is made from 20 00:01:17,760 --> 00:01:21,080 Speaker 3: shoe pastry and filled with a variety of cream filling. 21 00:01:21,480 --> 00:01:24,440 Speaker 3: When Susan is not in the kitchen, she enjoys rock clipping. 22 00:01:24,760 --> 00:01:27,399 Speaker 3: Welcome Susan, and we're so thrilled you could join us today. 23 00:01:27,920 --> 00:01:30,160 Speaker 4: Thank you Rebecca and David for having me and I'm 24 00:01:30,240 --> 00:01:32,720 Speaker 4: super excited to be here today with you all. 25 00:01:34,440 --> 00:01:37,160 Speaker 2: There is so much we want to talk to you about. 26 00:01:37,760 --> 00:01:39,520 Speaker 2: I guess just to get us started and get us 27 00:01:39,560 --> 00:01:43,400 Speaker 2: warmed up, you'll oversee quite a massive operation of courus 28 00:01:43,400 --> 00:01:47,120 Speaker 2: at Blackrock. And we're wondering, as you look ahead to 29 00:01:47,120 --> 00:01:50,400 Speaker 2: the rest of this year, what are your key priorities. 30 00:01:50,400 --> 00:01:52,600 Speaker 2: What do you want to see your firm achive by 31 00:01:52,600 --> 00:01:53,440 Speaker 2: the end of this year. 32 00:01:54,080 --> 00:01:58,080 Speaker 4: Sure, first, let me touch upon the macro level. We're 33 00:01:58,120 --> 00:02:01,040 Speaker 4: seeing there are structural changes taking place in the global 34 00:02:01,080 --> 00:02:05,840 Speaker 4: economy which are impacting the way clients are constructing their portfolios. 35 00:02:06,480 --> 00:02:10,760 Speaker 4: These mega forces, or what we're calling big structural shifts, 36 00:02:10,800 --> 00:02:18,480 Speaker 4: are driving returns, including for example, demographic divergence, the digital disruption, 37 00:02:19,160 --> 00:02:22,799 Speaker 4: the geopolitical fragmentation, if you were to say, and then 38 00:02:22,919 --> 00:02:27,320 Speaker 4: also the evolving financial architecture and transition to a low 39 00:02:27,360 --> 00:02:31,720 Speaker 4: carbon economy. So today, all around the region and in 40 00:02:31,760 --> 00:02:35,560 Speaker 4: fact globally, our clients are rethinking their portfolios and how 41 00:02:35,560 --> 00:02:39,280 Speaker 4: they should be allocating to them. This is where Blackgroc 42 00:02:39,360 --> 00:02:43,200 Speaker 4: is uniquely positioned as we have everything from public to 43 00:02:43,320 --> 00:02:47,760 Speaker 4: private markets and we're able to offer our clients customization 44 00:02:48,160 --> 00:02:51,720 Speaker 4: to suit their needs. So specifically here in Asia Pacific, 45 00:02:51,840 --> 00:02:57,040 Speaker 4: we're seeing three areas that are really moving or accelerating 46 00:02:57,160 --> 00:03:02,320 Speaker 4: in this narrative. Number one is Japan, Number two is ETFs, 47 00:03:02,480 --> 00:03:05,799 Speaker 4: and number three private markets. Let me talk about each 48 00:03:05,840 --> 00:03:09,440 Speaker 4: of them very quickly. For Japan, as you will know, 49 00:03:09,760 --> 00:03:13,920 Speaker 4: monetary and corporate reforms are transforming the market and creating 50 00:03:14,080 --> 00:03:18,240 Speaker 4: very exciting investment opportunities. While it's still early, there is 51 00:03:18,280 --> 00:03:20,280 Speaker 4: a lot of hype and we are seeing that the 52 00:03:20,320 --> 00:03:25,160 Speaker 4: market has turned and it's gathering great momentum and we 53 00:03:25,200 --> 00:03:30,600 Speaker 4: are seeing basically the end to decades of deflation and 54 00:03:30,840 --> 00:03:35,480 Speaker 4: economics avclation. So this is really important in driving the 55 00:03:35,600 --> 00:03:38,920 Speaker 4: changes right. So I think the end of negative interest 56 00:03:39,000 --> 00:03:42,200 Speaker 4: rate policies just a few weeks ago with the move 57 00:03:42,800 --> 00:03:46,760 Speaker 4: is a positive, although it's going to create interim market volatility. 58 00:03:47,760 --> 00:03:51,040 Speaker 4: Number two ETFs, this We've been on a journey for 59 00:03:51,080 --> 00:03:54,880 Speaker 4: a long time, Rebecca. I remember you from a decade 60 00:03:54,960 --> 00:03:58,600 Speaker 4: ago when we were talking about ets This is not changing. 61 00:03:58,800 --> 00:04:03,119 Speaker 4: If anything, we can continues to see our institutional investors 62 00:04:03,120 --> 00:04:07,600 Speaker 4: increase their adoption to ETFs in the region. Largely they've 63 00:04:07,600 --> 00:04:11,120 Speaker 4: been playing in this space by purchasing our global lines 64 00:04:11,200 --> 00:04:14,960 Speaker 4: both the US and Europe in this part of the world. Recently, 65 00:04:15,000 --> 00:04:19,520 Speaker 4: what we're seeing because of the changes in largely the demographics, 66 00:04:19,640 --> 00:04:24,640 Speaker 4: with the self directed investor, with wealth and the digital 67 00:04:24,760 --> 00:04:27,080 Speaker 4: transformation that we're seeing in this part of the world, 68 00:04:27,320 --> 00:04:30,760 Speaker 4: we're seeing a demand for locally listed ETFs and we 69 00:04:30,800 --> 00:04:33,920 Speaker 4: see that in Japan, we see that in Australia. Those 70 00:04:33,960 --> 00:04:36,599 Speaker 4: are the two countries that we're seeing the growth there, 71 00:04:36,640 --> 00:04:40,040 Speaker 4: but we expect that trend to continue into the future. 72 00:04:40,640 --> 00:04:43,520 Speaker 4: And then the third point is in private markets. While 73 00:04:43,680 --> 00:04:48,160 Speaker 4: the markets remain incredibly volatile, I would say this shift 74 00:04:48,279 --> 00:04:52,000 Speaker 4: to the broader economy and investing landscape that I'm talking 75 00:04:52,040 --> 00:04:56,200 Speaker 4: about is positioning the private markets for growth. And also, 76 00:04:56,440 --> 00:04:58,400 Speaker 4: you know, I think this is an area where this 77 00:04:58,520 --> 00:05:01,560 Speaker 4: part of the world, in particular, where our clients have 78 00:05:01,760 --> 00:05:05,400 Speaker 4: always looked for income, they are starting to look at 79 00:05:05,480 --> 00:05:09,320 Speaker 4: private market investing as a means to get that income. 80 00:05:09,440 --> 00:05:14,520 Speaker 4: Two areas in particular are in infrastructure and in private credit. 81 00:05:15,040 --> 00:05:16,800 Speaker 4: Let me stop there, so. 82 00:05:16,839 --> 00:05:20,080 Speaker 3: Let's drill into point one and two that you mentioned 83 00:05:20,240 --> 00:05:23,679 Speaker 3: Japan and ETFs. Japan is the largest market in Asia 84 00:05:23,720 --> 00:05:27,160 Speaker 3: Pacific with roughly five hundred and sixty billion in assets 85 00:05:27,200 --> 00:05:30,320 Speaker 3: under management, and for black rocks specifically I Shares, you 86 00:05:30,440 --> 00:05:34,080 Speaker 3: rank fifth in Japan. You've grown very significantly, especially in 87 00:05:34,080 --> 00:05:37,080 Speaker 3: the past year, with six billion dollars of inflows. You've 88 00:05:37,160 --> 00:05:40,920 Speaker 3: launched nine new ETFs. You are one of the lowest 89 00:05:41,120 --> 00:05:45,760 Speaker 3: providers in Japan, with your ETFs charging only five basis points, 90 00:05:46,320 --> 00:05:49,479 Speaker 3: and we've seen very large assets come into Japan in 91 00:05:49,520 --> 00:05:53,040 Speaker 3: your ETFs, especially from sovereign wealth fund. The NIKE has 92 00:05:53,080 --> 00:05:56,640 Speaker 3: returned thirty percent in twenty twenty three. This year's up 93 00:05:56,720 --> 00:06:00,120 Speaker 3: more than fourteen percent. But as you mentioned when when 94 00:06:00,120 --> 00:06:02,080 Speaker 3: I first met you, you were head of capital markets 95 00:06:02,080 --> 00:06:04,960 Speaker 3: at I Shares, and the ETF adoption rate in Asia 96 00:06:05,000 --> 00:06:08,080 Speaker 3: has grown significantly. To your point, a lot of people 97 00:06:08,160 --> 00:06:12,120 Speaker 3: were previously buying US ETFs, but now in Asia we're 98 00:06:12,160 --> 00:06:15,840 Speaker 3: seeing more and more investors trade Asia in Asia. So 99 00:06:15,880 --> 00:06:18,560 Speaker 3: since Japan is a focus area for Blackrock this year. 100 00:06:18,760 --> 00:06:22,000 Speaker 3: Could you help us understand why Japan and why now? 101 00:06:22,839 --> 00:06:26,520 Speaker 4: Yeah? Sure, So I already alluded to this before and 102 00:06:26,560 --> 00:06:29,880 Speaker 4: when I touched Bound Japan, but let's expand upon that, right. So, 103 00:06:30,440 --> 00:06:33,760 Speaker 4: if you think about this, Japan is one of the 104 00:06:33,800 --> 00:06:37,480 Speaker 4: most mature economies in the world, and it's situated here 105 00:06:37,520 --> 00:06:41,240 Speaker 4: in Asia Pacific. It's getting traction and I think there 106 00:06:41,279 --> 00:06:44,080 Speaker 4: are three key drivers to this. So the first is 107 00:06:44,120 --> 00:06:48,880 Speaker 4: on the mac front, rates are changing. The BOJ move 108 00:06:49,320 --> 00:06:53,280 Speaker 4: means that gradually will start to see rates normalize in Japan, 109 00:06:53,520 --> 00:06:58,160 Speaker 4: and increasing rates is really really important. As that happens, 110 00:06:58,200 --> 00:07:00,840 Speaker 4: we're going to see inflation come back back into Japan 111 00:07:01,240 --> 00:07:04,440 Speaker 4: and this is going to have an impact on households, 112 00:07:04,680 --> 00:07:09,520 Speaker 4: on corporate behaviors, and on wages, all trending positive. So 113 00:07:09,560 --> 00:07:13,880 Speaker 4: that's number one. This creates opportunity. Secondly, Japan is a 114 00:07:13,880 --> 00:07:18,840 Speaker 4: great diversifier for global investors. If you think about portfolio allocation, 115 00:07:19,520 --> 00:07:24,120 Speaker 4: Japan is under allocated in all global portfolios today, and 116 00:07:24,200 --> 00:07:27,080 Speaker 4: that's probably the first move that we have seen, Rebecca, 117 00:07:27,440 --> 00:07:29,760 Speaker 4: to your point, the equity markets have gone up, the 118 00:07:29,800 --> 00:07:33,680 Speaker 4: first global move is global investors allocating more into Japan 119 00:07:34,200 --> 00:07:39,000 Speaker 4: as well as domestics, so that diversification as another market 120 00:07:39,040 --> 00:07:42,520 Speaker 4: outside of the United States to allocate to is very important. 121 00:07:42,920 --> 00:07:47,360 Speaker 4: And third, I think within the country, their democratic challenges 122 00:07:47,920 --> 00:07:51,560 Speaker 4: are really profound. And we know that Japan is aging 123 00:07:51,800 --> 00:07:54,960 Speaker 4: and therefore they have a labor shortage, and we know 124 00:07:55,040 --> 00:07:58,360 Speaker 4: that over time, like many many countries in the world, 125 00:07:58,560 --> 00:08:02,000 Speaker 4: you know that aging population creates a lot of challenges. 126 00:08:02,200 --> 00:08:06,440 Speaker 4: What's different though, Japan has really focused on development in 127 00:08:06,680 --> 00:08:11,200 Speaker 4: automation and in robotics. Japan is well positioned to benefit 128 00:08:11,280 --> 00:08:13,640 Speaker 4: from some of the big themes that prevail around the 129 00:08:13,640 --> 00:08:17,320 Speaker 4: globe today in the investment space, right, So in particular, 130 00:08:17,400 --> 00:08:21,800 Speaker 4: mega trends around aging population is something that can greatly 131 00:08:21,880 --> 00:08:25,960 Speaker 4: benefit Japanese companies because they're already focused on it, the automation, 132 00:08:26,320 --> 00:08:31,720 Speaker 4: the robotics, right. And then I think also AI Semiconductor 133 00:08:32,800 --> 00:08:36,280 Speaker 4: medtech for example, because they had a necessity to try 134 00:08:36,320 --> 00:08:39,439 Speaker 4: to solve these problems for their own domestic and now 135 00:08:39,559 --> 00:08:43,000 Speaker 4: all these themes are becoming incredibly relevant globally. So it 136 00:08:43,080 --> 00:08:47,840 Speaker 4: makes them an amazing, amazing economy to look at participating in. 137 00:08:48,200 --> 00:08:51,760 Speaker 4: So I think the domestic monetary shifts, the corporate governance 138 00:08:51,800 --> 00:08:56,160 Speaker 4: shifts with sort of the diversification and portfolios and everything 139 00:08:56,200 --> 00:08:59,280 Speaker 4: that they are playing and makes them a great attractive 140 00:08:59,320 --> 00:09:04,560 Speaker 4: destination for all investors, both domestically and globally. Now in 141 00:09:04,640 --> 00:09:08,080 Speaker 4: terms of ETFs, one of the things that the government 142 00:09:08,400 --> 00:09:13,120 Speaker 4: is working on around monetary policy, corporate governance, and domestic 143 00:09:13,200 --> 00:09:16,800 Speaker 4: focus as they know that their demographics are aging, is 144 00:09:16,840 --> 00:09:20,560 Speaker 4: to move cash into investments, and we see that in 145 00:09:20,640 --> 00:09:25,920 Speaker 4: Japan where they're focusing on policy changes. They have, for example, 146 00:09:26,080 --> 00:09:29,800 Speaker 4: expanded their NISA savings plan, which is a tax exempt 147 00:09:29,840 --> 00:09:33,560 Speaker 4: scheme for savings. There's still a lot to do there. 148 00:09:33,679 --> 00:09:36,720 Speaker 4: It's early days and I'm very hopeful that the government 149 00:09:36,760 --> 00:09:39,720 Speaker 4: will continue to evolve this. But what all this means 150 00:09:39,800 --> 00:09:44,319 Speaker 4: is with rates going up, with policy changes and implementation 151 00:09:44,520 --> 00:09:48,720 Speaker 4: of savings plans, it's really trying to force that next 152 00:09:48,760 --> 00:09:53,920 Speaker 4: generation and also currently the aging generation to invest more 153 00:09:54,000 --> 00:09:56,920 Speaker 4: for the future, because you can't just sit in cash anymore. 154 00:09:56,960 --> 00:09:59,920 Speaker 4: If rates are going up, you have to move into investments. 155 00:10:00,360 --> 00:10:03,800 Speaker 4: So why is this really great for the ETF. It's 156 00:10:03,840 --> 00:10:07,360 Speaker 4: a simple tool for that money to move into without 157 00:10:07,440 --> 00:10:11,520 Speaker 4: having to understand which share should I purchase, which bond 158 00:10:11,559 --> 00:10:15,800 Speaker 4: should I buy? For these investors who may not necessarily 159 00:10:16,040 --> 00:10:18,600 Speaker 4: be really really in the know of the markets because 160 00:10:18,600 --> 00:10:20,880 Speaker 4: they hadn't had to for the past three decades. You 161 00:10:20,960 --> 00:10:23,920 Speaker 4: just sit in cash. The easy go to instrument that 162 00:10:23,960 --> 00:10:30,080 Speaker 4: provides transparency, liquidity, and choice is the ETF. So that's why, 163 00:10:30,200 --> 00:10:34,400 Speaker 4: Rebecca and David, you're seeing that in Japan. Not only 164 00:10:34,520 --> 00:10:37,880 Speaker 4: is the growth of ets been pretty phenomenal, to be honest, 165 00:10:38,160 --> 00:10:41,480 Speaker 4: but the choices and why we're launching more in that 166 00:10:41,520 --> 00:10:45,440 Speaker 4: space is critically important so that when cash moves, they 167 00:10:45,440 --> 00:10:46,240 Speaker 4: have somewhere to go. 168 00:10:47,559 --> 00:10:52,200 Speaker 2: Fantastic. The third pillar of growth or priority or set 169 00:10:52,200 --> 00:10:54,120 Speaker 2: of priorities that you mentioned earlier on if we could 170 00:10:54,160 --> 00:10:57,240 Speaker 2: just elaborate on that, it's really private markets, and within 171 00:10:57,280 --> 00:11:00,280 Speaker 2: that you mentioned infrastructure in private credit. I have a 172 00:11:00,320 --> 00:11:02,679 Speaker 2: couple of follow ups in that if you don't mind, 173 00:11:02,720 --> 00:11:06,720 Speaker 2: and one is going into private markets is a completely 174 00:11:07,040 --> 00:11:10,280 Speaker 2: different ballgame. You know, the dynamics of that market, everything 175 00:11:10,280 --> 00:11:14,520 Speaker 2: from structuring, deal sourcing, what have you is completely different. 176 00:11:14,559 --> 00:11:16,360 Speaker 2: So I was wondering if you could touch on the 177 00:11:16,480 --> 00:11:21,880 Speaker 2: challenges of black Rock getting into something arguably very very different. 178 00:11:21,920 --> 00:11:25,120 Speaker 2: That's number one. Number two is what are you hearing 179 00:11:25,440 --> 00:11:29,440 Speaker 2: from your clients as far as the preference and allocations 180 00:11:29,520 --> 00:11:33,480 Speaker 2: into private assets, how sustainable do you think that flow 181 00:11:33,559 --> 00:11:36,880 Speaker 2: is going to be predictable or is it simply cyclical 182 00:11:36,920 --> 00:11:39,199 Speaker 2: in other words, cyclical versus structural as well? Just take 183 00:11:39,240 --> 00:11:40,480 Speaker 2: us through how you're thinking about that. 184 00:11:41,720 --> 00:11:46,120 Speaker 4: Sure, so Blackrock already today where amongst the top five 185 00:11:46,280 --> 00:11:49,600 Speaker 4: in private markets globally, so this is not new to us. 186 00:11:49,679 --> 00:11:52,720 Speaker 4: And we cover everything from your traditional pe all the 187 00:11:52,720 --> 00:11:57,120 Speaker 4: way through the spectrum to real estate and infrastructure, so 188 00:11:57,200 --> 00:11:59,719 Speaker 4: it is areas that we've been playing in for a 189 00:11:59,760 --> 00:12:03,679 Speaker 4: long time now. I think the difference now, what is 190 00:12:03,760 --> 00:12:08,080 Speaker 4: driving all of this and what is creating such focus 191 00:12:08,160 --> 00:12:10,920 Speaker 4: on private markets. I would say there's a few trends 192 00:12:11,000 --> 00:12:14,959 Speaker 4: right in general, there's a changing nature in private market allocation. 193 00:12:15,240 --> 00:12:18,400 Speaker 4: And what I would say, David is it's an institutional 194 00:12:18,440 --> 00:12:22,559 Speaker 4: focus play largely, and it always has been up to now. 195 00:12:22,640 --> 00:12:26,360 Speaker 4: Although we are seeing demand in some pockets of the 196 00:12:26,480 --> 00:12:29,480 Speaker 4: ultra high net worth, but I still think that largely 197 00:12:29,760 --> 00:12:34,640 Speaker 4: private market demand is an institutional play. So what we've 198 00:12:34,679 --> 00:12:39,679 Speaker 4: seen is that traditionally, sovereign wealth funds and institutional investors 199 00:12:39,880 --> 00:12:45,240 Speaker 4: have built over time, deep and sophisticated private equity portfolios 200 00:12:45,360 --> 00:12:48,360 Speaker 4: that's known to be true, and then what we're seeing 201 00:12:48,520 --> 00:12:52,400 Speaker 4: in changes is that they're expanding into other areas to 202 00:12:52,520 --> 00:12:57,880 Speaker 4: allocate and they want different accepnesses as the requirements on yield, 203 00:12:58,440 --> 00:13:02,080 Speaker 4: the requirement on where to invest are changing, and a 204 00:13:02,120 --> 00:13:04,360 Speaker 4: lot of that has been fueled by the increase in 205 00:13:04,480 --> 00:13:08,600 Speaker 4: rates in the previous year around dollars right. So I 206 00:13:08,640 --> 00:13:12,559 Speaker 4: think the diversification and sort of like the factors that 207 00:13:12,559 --> 00:13:15,480 Speaker 4: are driving private markets in this part of the world 208 00:13:15,600 --> 00:13:17,720 Speaker 4: is more profound because, as you both know, in this 209 00:13:17,840 --> 00:13:20,040 Speaker 4: part of the world, a lot of our clients are 210 00:13:20,040 --> 00:13:24,360 Speaker 4: looking for income. So income is very important, and I 211 00:13:24,400 --> 00:13:27,120 Speaker 4: think in the public side of the market the yields 212 00:13:27,440 --> 00:13:30,720 Speaker 4: normalize and are a little bit lower. We're seeing that 213 00:13:30,880 --> 00:13:33,800 Speaker 4: in this part of the world, our clients are looking 214 00:13:34,679 --> 00:13:39,240 Speaker 4: number one two things out duration and how they can 215 00:13:39,360 --> 00:13:43,679 Speaker 4: get income relatives to the duration that they're looking at. 216 00:13:44,240 --> 00:13:47,640 Speaker 4: The second trend is that we're seeing that a lot 217 00:13:47,679 --> 00:13:51,960 Speaker 4: of companies are staying private for longer, and because they're 218 00:13:51,960 --> 00:13:55,120 Speaker 4: staying private for longer, there is a need for us 219 00:13:55,160 --> 00:13:58,400 Speaker 4: to continue to support the private side and see what 220 00:13:58,480 --> 00:14:02,920 Speaker 4: opportunities are out there these companies are looking for, like 221 00:14:03,280 --> 00:14:07,040 Speaker 4: alternative sources of capital in order for them to say 222 00:14:07,240 --> 00:14:10,520 Speaker 4: private for longer, So that creates a great opportunity without 223 00:14:10,559 --> 00:14:15,720 Speaker 4: institutional clients. The other piece is banks. Banks balance sheets 224 00:14:15,760 --> 00:14:19,360 Speaker 4: continue to be stressed and they are being very selective 225 00:14:19,480 --> 00:14:22,880 Speaker 4: on how they deploy balance sheet so in that you're 226 00:14:22,960 --> 00:14:26,440 Speaker 4: seeing the area of for example, private credit sort of 227 00:14:26,480 --> 00:14:30,560 Speaker 4: grow because we have both sides of the equation, those 228 00:14:30,600 --> 00:14:32,960 Speaker 4: that want to lend and those that want to borrow, 229 00:14:33,040 --> 00:14:36,440 Speaker 4: but away from the bank balance sheets. So that becomes 230 00:14:36,440 --> 00:14:40,040 Speaker 4: a critical need as well for our clients. And within 231 00:14:40,160 --> 00:14:44,240 Speaker 4: all these there are great opportunities to invest and to 232 00:14:44,360 --> 00:14:48,200 Speaker 4: generate the yields or the income that our clients might 233 00:14:48,240 --> 00:14:51,240 Speaker 4: be looking for when they assess how they should be 234 00:14:51,360 --> 00:14:53,760 Speaker 4: creating their portfolios over the long run. 235 00:14:55,200 --> 00:14:59,040 Speaker 2: It's certainly something that anecdotally has come up a lot 236 00:14:59,120 --> 00:15:01,520 Speaker 2: more in the last six months. You know, a pool 237 00:15:01,560 --> 00:15:05,080 Speaker 2: of byside investors who would normally not even discuss private 238 00:15:05,120 --> 00:15:07,840 Speaker 2: markets are now and to your point, sovereign wealth funds 239 00:15:07,840 --> 00:15:10,720 Speaker 2: for example. You know, I was having a conversation I 240 00:15:10,720 --> 00:15:13,800 Speaker 2: think it was almost about a year back with Korea 241 00:15:13,840 --> 00:15:16,560 Speaker 2: Investment Corps and they're looking to increase their allocations to 242 00:15:16,720 --> 00:15:19,480 Speaker 2: private markets generally speaking by I think five percentage points. 243 00:15:20,200 --> 00:15:22,040 Speaker 2: And one of the things that they brought up, and 244 00:15:22,080 --> 00:15:25,040 Speaker 2: just anecdotally as well, that's I guess, in some ways 245 00:15:25,080 --> 00:15:29,160 Speaker 2: incentivizing and forcing if that's the right word, more investors 246 00:15:29,160 --> 00:15:33,000 Speaker 2: into the private markets, is just that correlations between your 247 00:15:33,000 --> 00:15:36,760 Speaker 2: traditional stocks and bonds have snapped back substantially as the 248 00:15:36,800 --> 00:15:38,560 Speaker 2: FED raised interest rate. So I guess this sticks me 249 00:15:38,600 --> 00:15:42,040 Speaker 2: into my next question, what happens when the FED eventually 250 00:15:42,120 --> 00:15:45,240 Speaker 2: takes rates down? What remained trends that we can trust 251 00:15:45,360 --> 00:15:47,400 Speaker 2: and what do you think changes? How does that affect 252 00:15:47,400 --> 00:15:49,320 Speaker 2: your strategy, for example as a firm. 253 00:15:50,600 --> 00:15:53,920 Speaker 4: I think that's a great question. I'm not sure that 254 00:15:53,920 --> 00:15:56,440 Speaker 4: the FEDS will take the rates down. From my personal 255 00:15:56,440 --> 00:16:00,760 Speaker 4: opinion right now, there are no macro factors today that 256 00:16:00,840 --> 00:16:04,880 Speaker 4: would have a strong dictation of feeds should move on rates, 257 00:16:05,200 --> 00:16:08,080 Speaker 4: So I think the rates will normalize around here. But 258 00:16:08,200 --> 00:16:11,720 Speaker 4: having said that, if rates do go down, the search 259 00:16:11,760 --> 00:16:15,480 Speaker 4: for income becomes even more prevalent, and that's an area 260 00:16:15,600 --> 00:16:18,800 Speaker 4: where I think private markets will continue to play a 261 00:16:18,920 --> 00:16:22,880 Speaker 4: long lasting support to our client base because of the 262 00:16:22,920 --> 00:16:26,840 Speaker 4: fact that there are critical themes in private markets. If 263 00:16:26,880 --> 00:16:30,040 Speaker 4: you just think about, for example, why are people focused 264 00:16:30,080 --> 00:16:34,200 Speaker 4: on infrastructure and the transition to net zero that will 265 00:16:34,240 --> 00:16:38,440 Speaker 4: take place over a long period of time, and these 266 00:16:38,480 --> 00:16:43,840 Speaker 4: themes will generate significant amount of returns and irrespective of 267 00:16:43,920 --> 00:16:47,240 Speaker 4: where rates are up or down, those returns will always 268 00:16:47,320 --> 00:16:51,400 Speaker 4: normalize and continue to carry as we must go into 269 00:16:51,560 --> 00:16:55,600 Speaker 4: transitioning to net zero, as we must then alongside of 270 00:16:55,640 --> 00:17:01,720 Speaker 4: that build infrastructure i e. Data centers, global energy support, etc. 271 00:17:02,160 --> 00:17:05,520 Speaker 4: So I think this trend is here. So that's a 272 00:17:05,560 --> 00:17:08,400 Speaker 4: trend irrespective of rates, even though it might be bumpy 273 00:17:08,680 --> 00:17:11,840 Speaker 4: depending on how quickly rates move. But I have a 274 00:17:12,040 --> 00:17:15,040 Speaker 4: firm opinion personally that the rates are normalized and will 275 00:17:15,040 --> 00:17:17,399 Speaker 4: be quite stable for at least a million part of 276 00:17:17,440 --> 00:17:17,880 Speaker 4: this year. 277 00:17:18,720 --> 00:17:20,679 Speaker 2: Now, if you like what you hear, do not forget 278 00:17:20,680 --> 00:17:24,240 Speaker 2: to subscribe to like and also to share. 279 00:17:25,240 --> 00:17:29,920 Speaker 1: This podcast is brought to you by HKX Asia's ETF marketplace, 280 00:17:30,359 --> 00:17:33,240 Speaker 1: where you can get exposure to themes ranging from AI 281 00:17:33,400 --> 00:17:37,480 Speaker 1: to virtual assets, small cap to large cap Greater China 282 00:17:37,680 --> 00:17:40,960 Speaker 1: to global search HKX to learn more. 283 00:17:42,160 --> 00:17:44,679 Speaker 3: So let's go back to ETF, which you mentioned is 284 00:17:44,720 --> 00:17:46,919 Speaker 3: the second pillar of what you guys are focused on 285 00:17:47,000 --> 00:17:50,119 Speaker 3: in the region. So I think one thing that's unique 286 00:17:50,119 --> 00:17:53,479 Speaker 3: to Asia is the fragmentation that we see across the region. 287 00:17:53,800 --> 00:17:57,560 Speaker 3: So for instance, the difference between Hong Kong, China, Australia, 288 00:17:57,920 --> 00:18:01,320 Speaker 3: Japan and how investors use EAT and why they use it. 289 00:18:01,720 --> 00:18:05,000 Speaker 3: To your point, For instance, in Japan, they just launched 290 00:18:05,000 --> 00:18:08,840 Speaker 3: the NISA, which is a tax free stock investment program 291 00:18:09,119 --> 00:18:12,720 Speaker 3: which will help the aging population in Japan. In Hong Kong, 292 00:18:13,119 --> 00:18:17,000 Speaker 3: we just launched the Spot Bitcoin and Ether ETFs. Virtual 293 00:18:17,080 --> 00:18:20,479 Speaker 3: asset is definitely picking up in popularity in the US. 294 00:18:20,800 --> 00:18:24,320 Speaker 3: Blackrock has the largest Spot Bitcoin ETF with more than 295 00:18:24,480 --> 00:18:27,560 Speaker 3: seventeen billion in assets and you only just launch this 296 00:18:27,680 --> 00:18:31,879 Speaker 3: product in January. There's clear demand from investors globally for 297 00:18:32,040 --> 00:18:36,360 Speaker 3: virtual asset, not just across retail but also institutional clients. 298 00:18:36,640 --> 00:18:39,359 Speaker 3: Does Blackrock have any plans to bring such product to 299 00:18:39,359 --> 00:18:44,199 Speaker 3: the local market in Asia. 300 00:18:42,560 --> 00:18:45,359 Speaker 4: So, Rebecca, you know, even if we did, I couldn't 301 00:18:45,359 --> 00:18:47,840 Speaker 4: comment on that. However, what I would say is the 302 00:18:47,920 --> 00:18:51,040 Speaker 4: launch of the Spot Bitcoin ETF for US in the 303 00:18:51,400 --> 00:18:55,960 Speaker 4: US has been super exciting because it's a scalable bridge 304 00:18:56,200 --> 00:18:59,760 Speaker 4: from traditional finance to bitcoin and it's helping to broaden 305 00:19:00,040 --> 00:19:04,239 Speaker 4: access to bitcoin for mainstream investors. It also highlights. The 306 00:19:04,280 --> 00:19:07,880 Speaker 4: one thing that we've been saying, which is ets as 307 00:19:07,920 --> 00:19:12,000 Speaker 4: a rapper is ubiquitous, and more and more, what we 308 00:19:12,040 --> 00:19:15,120 Speaker 4: are seeing is you can take the ETF rapper and 309 00:19:15,160 --> 00:19:19,040 Speaker 4: you can pretty much look to put anything within it 310 00:19:19,119 --> 00:19:22,840 Speaker 4: and launch it and offer it to mainstream investors. I 311 00:19:22,880 --> 00:19:26,159 Speaker 4: think this is really really important for us because we 312 00:19:26,240 --> 00:19:29,240 Speaker 4: knew it, We've been saying it for over a decade, 313 00:19:29,400 --> 00:19:32,719 Speaker 4: and now we are seeing this come to play. So 314 00:19:33,040 --> 00:19:35,679 Speaker 4: it's very exciting and I think there will be a 315 00:19:35,680 --> 00:19:38,880 Speaker 4: future where you can probably ETF almost anything. 316 00:19:39,840 --> 00:19:42,119 Speaker 3: So one thing that I love about ETFs is that 317 00:19:42,160 --> 00:19:45,440 Speaker 3: they're like legals. You can build just about anything with them, 318 00:19:45,680 --> 00:19:49,119 Speaker 3: like an ETF. Ultimately, to your point, ETF is just 319 00:19:49,160 --> 00:19:52,840 Speaker 3: a rapper for another product. We've seen phenomenal growth across 320 00:19:52,960 --> 00:19:55,600 Speaker 3: product offering in recent years, and if we look at 321 00:19:55,600 --> 00:19:59,960 Speaker 3: the Asia Pacific landscape, the clientele and the demand has shifted. 322 00:20:00,440 --> 00:20:03,720 Speaker 3: Previously a lot of people in Asia we're trading usutfs, 323 00:20:04,000 --> 00:20:06,239 Speaker 3: but now we're seeing a lot of people trade their 324 00:20:06,280 --> 00:20:09,920 Speaker 3: local markets more. We have investors in Japan only trading 325 00:20:09,920 --> 00:20:14,480 Speaker 3: in Japan, clients in Hong Kong only trading Hong Kong. Investors' 326 00:20:14,600 --> 00:20:18,440 Speaker 3: investment habits have shifted. For instance, there are certain tax 327 00:20:18,520 --> 00:20:21,639 Speaker 3: benefits for Asian investors to trade their local product offering. 328 00:20:22,040 --> 00:20:23,879 Speaker 3: You no longer need to stay up at night to 329 00:20:23,920 --> 00:20:27,160 Speaker 3: trade the US market because we have those products locally. 330 00:20:27,960 --> 00:20:30,160 Speaker 3: What are some of the ETF trends in Asia that 331 00:20:30,200 --> 00:20:33,480 Speaker 3: you've observed and some of the challenges ETF investors face 332 00:20:33,560 --> 00:20:34,119 Speaker 3: in the region. 333 00:20:35,440 --> 00:20:38,760 Speaker 4: So I think while we see in great adoption across 334 00:20:38,760 --> 00:20:41,840 Speaker 4: the region, in particular, we see it in Australia and 335 00:20:41,880 --> 00:20:45,320 Speaker 4: that was really catalyzed by sort of the move to 336 00:20:45,400 --> 00:20:50,720 Speaker 4: peebase in twenty nineteen and also the digital transformation on 337 00:20:50,800 --> 00:20:55,119 Speaker 4: platforms down in Australia. That's one. And then if we 338 00:20:55,200 --> 00:20:58,520 Speaker 4: move to Japan, you've already highlighted that in terms of 339 00:20:58,600 --> 00:21:02,320 Speaker 4: we're seeing more local adoption because of this focus on 340 00:21:02,440 --> 00:21:06,000 Speaker 4: moving cash into investment products. I would say the rest 341 00:21:06,000 --> 00:21:10,320 Speaker 4: of the world in APEX, so Hong Kong, Singapore, you 342 00:21:10,359 --> 00:21:14,200 Speaker 4: can put Taiwan, Korea, everywhere with there's a ETF market. 343 00:21:14,320 --> 00:21:18,600 Speaker 4: It's all very different, and while it's growing, it still 344 00:21:18,640 --> 00:21:22,040 Speaker 4: can grow much faster. One of the main challenges we 345 00:21:22,160 --> 00:21:26,479 Speaker 4: continue to have is that these markets largely still retro 346 00:21:26,640 --> 00:21:30,440 Speaker 4: session based and when there are retro sessions, it's very 347 00:21:30,560 --> 00:21:35,000 Speaker 4: challenging to drive adoption of ETFs in an accelerated manner 348 00:21:35,320 --> 00:21:38,680 Speaker 4: because people don't get paid for selling ETFs. We don't 349 00:21:38,680 --> 00:21:42,159 Speaker 4: necessarily need to say there's a massive band, but we 350 00:21:42,440 --> 00:21:46,520 Speaker 4: do need to see that there is the adoption because 351 00:21:46,560 --> 00:21:51,320 Speaker 4: our investors believe that having choice in your portfolio to 352 00:21:51,480 --> 00:21:55,600 Speaker 4: construct your portfolios will be the best So that investors 353 00:21:55,640 --> 00:21:58,879 Speaker 4: will see that having ETFs in your portfolio will be 354 00:21:58,960 --> 00:22:02,480 Speaker 4: the most costly fire way to trade in and out 355 00:22:02,560 --> 00:22:07,320 Speaker 4: of positions, and so that you can create amazing portfolios 356 00:22:07,359 --> 00:22:07,879 Speaker 4: over time. 357 00:22:09,040 --> 00:22:11,800 Speaker 3: Just for our audience who may not know, retrocession fees 358 00:22:11,920 --> 00:22:14,879 Speaker 3: or rebates are ultimately fees that you pay the distributor 359 00:22:15,119 --> 00:22:18,840 Speaker 3: for selling your product. It's a kickback fee. In Asia, 360 00:22:18,880 --> 00:22:22,440 Speaker 3: this is a very common practice and management fees are 361 00:22:22,480 --> 00:22:25,560 Speaker 3: often higher due to this. It's not uncommon for fees 362 00:22:25,600 --> 00:22:27,840 Speaker 3: to be one to two percent because you have to 363 00:22:27,880 --> 00:22:29,080 Speaker 3: pay the different parties. 364 00:22:30,400 --> 00:22:32,720 Speaker 2: Yeah, I's actually going to follow up on that. You know, 365 00:22:32,720 --> 00:22:35,199 Speaker 2: what's holding the growth back in some places is a 366 00:22:35,240 --> 00:22:39,560 Speaker 2: distribution issue and is that a function of regulation And 367 00:22:39,600 --> 00:22:42,840 Speaker 2: if it is partly, where do regulators in those places 368 00:22:42,920 --> 00:22:47,680 Speaker 2: perhaps need to look for successful case uses of where 369 00:22:47,680 --> 00:22:51,479 Speaker 2: it is successful to start incentivizing a change in that model. 370 00:22:51,520 --> 00:22:54,600 Speaker 2: You know, what are markets where I do that and 371 00:22:54,640 --> 00:22:56,960 Speaker 2: it's better off for the investor based net net. 372 00:22:58,240 --> 00:23:01,840 Speaker 4: I would point them to the US and in particular 373 00:23:01,920 --> 00:23:05,600 Speaker 4: to the UK. So those are two markets that due 374 00:23:05,680 --> 00:23:10,800 Speaker 4: to regulatory change and shifts and moving to feebase. This 375 00:23:10,880 --> 00:23:14,800 Speaker 4: has created a momentum that helped investors think about their 376 00:23:14,840 --> 00:23:18,560 Speaker 4: whole portfolio and how to construct that using an array 377 00:23:18,560 --> 00:23:24,040 Speaker 4: of instruments, mutual funds that have retro sessions and ETFs. 378 00:23:24,960 --> 00:23:27,639 Speaker 3: Just to add in Asia Pacific, the only region that 379 00:23:27,680 --> 00:23:31,240 Speaker 3: has banned retro session fee is Australia. Because of this, 380 00:23:31,400 --> 00:23:35,479 Speaker 3: they've managed to build a very successful retail and advisory model. 381 00:23:35,960 --> 00:23:39,080 Speaker 3: In Australia, they have one of the highest adoption rate 382 00:23:39,160 --> 00:23:41,600 Speaker 3: of ETFs and this could be due to the fact 383 00:23:41,880 --> 00:23:46,320 Speaker 3: that rebates are banned. This ultimately provides an equal landscape 384 00:23:46,320 --> 00:23:49,320 Speaker 3: for all of the ETF issuers, in clients and advisors 385 00:23:49,480 --> 00:23:52,720 Speaker 3: who can really select products that's right for them, not 386 00:23:52,800 --> 00:23:55,879 Speaker 3: based on advertisements or fees that people are paid. 387 00:23:57,119 --> 00:23:59,600 Speaker 2: All right, So we have a couple of minutes left 388 00:24:00,119 --> 00:24:02,200 Speaker 2: before I guess we wrap things up. I have actually 389 00:24:02,240 --> 00:24:04,280 Speaker 2: one more question on markets than we can turn to 390 00:24:04,320 --> 00:24:06,639 Speaker 2: the fun stuff. We've yet to really talk about China, 391 00:24:06,640 --> 00:24:08,879 Speaker 2: and I'm wondering it's been challenging the last two three 392 00:24:08,960 --> 00:24:11,480 Speaker 2: years for that market. Where do you think the market goes. 393 00:24:11,480 --> 00:24:15,720 Speaker 2: What's the outlook based on what information we have right now, Susan, 394 00:24:15,800 --> 00:24:18,719 Speaker 2: and what are your plans generally speaking in this part 395 00:24:18,760 --> 00:24:20,480 Speaker 2: of the world, Hong Kong and of course Greater China. 396 00:24:22,040 --> 00:24:26,960 Speaker 4: No doubt, China has been an underperformer in global markets 397 00:24:27,080 --> 00:24:30,760 Speaker 4: across the board for about eighteen months now. I think 398 00:24:30,840 --> 00:24:35,159 Speaker 4: the coming out of COVID recovery was expected to be 399 00:24:35,359 --> 00:24:39,840 Speaker 4: quite positively bullish, and that has been slow, so that's 400 00:24:39,880 --> 00:24:43,760 Speaker 4: caught people off guard. I also do think that given 401 00:24:44,160 --> 00:24:48,360 Speaker 4: that global geopolitical environment, as we head into a year 402 00:24:48,400 --> 00:24:52,119 Speaker 4: of more than fifty elections, in particular the United States, 403 00:24:52,400 --> 00:24:56,280 Speaker 4: this is casting a shadow over China. This will take 404 00:24:56,320 --> 00:24:59,600 Speaker 4: some time. Having said that, I do think that in 405 00:24:59,640 --> 00:25:04,119 Speaker 4: the market place domestically, the government, the regulators, and the 406 00:25:04,200 --> 00:25:08,440 Speaker 4: ecosystem are acutely aware that they have to focus on 407 00:25:08,480 --> 00:25:13,679 Speaker 4: rebooting the economy. They have some structural challenges I in 408 00:25:13,760 --> 00:25:18,080 Speaker 4: real estate that they continually are addressing, but they've been 409 00:25:18,160 --> 00:25:21,119 Speaker 4: very vocal that they want to continue to open up 410 00:25:21,160 --> 00:25:24,840 Speaker 4: their capital markets, and we're seeing through some of their 411 00:25:24,880 --> 00:25:29,639 Speaker 4: policy changes even recently on the positive to help to 412 00:25:29,880 --> 00:25:33,920 Speaker 4: encourage more global investment into China. So I think they 413 00:25:33,960 --> 00:25:36,920 Speaker 4: are working as best as they can, but it will 414 00:25:36,960 --> 00:25:40,080 Speaker 4: be quite a bumpy year for China continued. But as 415 00:25:40,080 --> 00:25:43,760 Speaker 4: long as they set positive policy changes, I think it 416 00:25:43,800 --> 00:25:46,640 Speaker 4: will come out of this. It's only a question of when. 417 00:25:47,080 --> 00:25:49,560 Speaker 4: And also I think the other thing is globally, we 418 00:25:49,640 --> 00:25:54,000 Speaker 4: need to accept that the sort of expectations of China's 419 00:25:54,040 --> 00:25:58,360 Speaker 4: GDP growing at eight or nine percent per annum are 420 00:25:58,520 --> 00:26:03,399 Speaker 4: gone and that China will grow at their expected five 421 00:26:03,480 --> 00:26:06,840 Speaker 4: for some time to come. And even at five percent growth, 422 00:26:07,080 --> 00:26:10,600 Speaker 4: China will continue to grow and grow out of its problems. 423 00:26:10,680 --> 00:26:14,000 Speaker 4: It'll just take a little bit longer. As for us 424 00:26:14,080 --> 00:26:18,920 Speaker 4: at Blackrock, we remain committed. We've built two businesses domestically 425 00:26:18,960 --> 00:26:23,560 Speaker 4: in China, a fund management company and a wealth management company, 426 00:26:23,760 --> 00:26:27,040 Speaker 4: and we continue to launch products and we continue to 427 00:26:27,080 --> 00:26:30,960 Speaker 4: grow our business on shore as well. We continue to 428 00:26:30,960 --> 00:26:35,399 Speaker 4: support our client flows from international with those clients in 429 00:26:35,440 --> 00:26:38,760 Speaker 4: particular around this region that continue to want to invest 430 00:26:38,800 --> 00:26:42,440 Speaker 4: in China. We have not changed our sort of business 431 00:26:42,480 --> 00:26:45,520 Speaker 4: model and we continue to support China over time. 432 00:26:46,000 --> 00:26:47,920 Speaker 2: Well, it said, and you know what, the markets have 433 00:26:48,000 --> 00:26:51,280 Speaker 2: been listening fairly recently when you look at how the 434 00:26:51,320 --> 00:26:53,720 Speaker 2: price action has been just a couple of more fun 435 00:26:53,800 --> 00:26:56,000 Speaker 2: questions and we're pivoting now away from some of the 436 00:26:56,040 --> 00:27:00,560 Speaker 2: more serious stuff. You've been around these markets and this 437 00:27:00,640 --> 00:27:05,400 Speaker 2: region for several years, and when someone says Asia, one 438 00:27:05,400 --> 00:27:08,479 Speaker 2: of the more common misconceptions is it's one place. It's actually, 439 00:27:08,480 --> 00:27:11,520 Speaker 2: as you know, twenty thirty different places. And when into 440 00:27:11,560 --> 00:27:14,600 Speaker 2: thirty different places, there's a lot of nuances to be here. 441 00:27:14,640 --> 00:27:17,359 Speaker 2: So my question is you've been around this entire region 442 00:27:17,400 --> 00:27:19,879 Speaker 2: for a long time. Is there anything that still surprises you? 443 00:27:20,560 --> 00:27:23,560 Speaker 4: Oh, every day something surprises me. That's why I've been 444 00:27:23,600 --> 00:27:26,520 Speaker 4: around for so long, David. I think the dynamism of 445 00:27:26,640 --> 00:27:30,920 Speaker 4: the region is exceptional and extraordinary. I think the changes 446 00:27:30,960 --> 00:27:34,479 Speaker 4: that are always coming keeps it exciting, and you know, 447 00:27:34,720 --> 00:27:37,639 Speaker 4: one keeps on learning every day. So when we were 448 00:27:37,640 --> 00:27:40,640 Speaker 4: talking about Japan, who would have thought that they would 449 00:27:40,680 --> 00:27:43,240 Speaker 4: move out of zero interest rates? Who would have thought 450 00:27:43,280 --> 00:27:46,200 Speaker 4: that there's inflation? What are you going to do when 451 00:27:46,200 --> 00:27:49,639 Speaker 4: that happens. That was always a yeah, we'll see doubt 452 00:27:49,640 --> 00:27:52,320 Speaker 4: it will happen, and now it's happening. So even the 453 00:27:52,359 --> 00:27:56,480 Speaker 4: most developed markets of this region are changing and evolving 454 00:27:56,560 --> 00:27:59,920 Speaker 4: and giving us some new food for thoughts. So that's 455 00:28:00,000 --> 00:28:01,680 Speaker 4: that's why I love it out here. It's great. 456 00:28:02,440 --> 00:28:05,680 Speaker 3: So, Susan, you've always provided me with very good advice, 457 00:28:05,960 --> 00:28:10,040 Speaker 3: whether that's on career investment. So for our audience, what's 458 00:28:10,080 --> 00:28:12,280 Speaker 3: the best career advice someone has given you? 459 00:28:13,800 --> 00:28:16,160 Speaker 4: Don't worry about the things that are out of your 460 00:28:16,240 --> 00:28:19,840 Speaker 4: control and focus on things that you can actually control 461 00:28:19,960 --> 00:28:21,440 Speaker 4: on a day to day basis. 462 00:28:21,840 --> 00:28:25,240 Speaker 3: I love that. So, as a senior female executive in 463 00:28:25,280 --> 00:28:28,359 Speaker 3: the finance industry, what's your take on breaking through gender 464 00:28:28,520 --> 00:28:31,679 Speaker 3: and cultural biases and how can we help women in 465 00:28:31,720 --> 00:28:33,160 Speaker 3: the finance industry succeed? 466 00:28:34,800 --> 00:28:37,920 Speaker 4: I would say, one step out of time, and let's 467 00:28:37,920 --> 00:28:41,920 Speaker 4: be realistic. This is a multi decade journey and I 468 00:28:41,960 --> 00:28:45,920 Speaker 4: think every step is a win. So let's do everything 469 00:28:45,960 --> 00:28:48,240 Speaker 4: one step at a time, and let's not try to 470 00:28:48,240 --> 00:28:52,480 Speaker 4: think we're going to make some massive changes overnight, because 471 00:28:52,520 --> 00:28:55,880 Speaker 4: we need everyone to join us on this bus and 472 00:28:55,920 --> 00:29:01,960 Speaker 4: you know, take this journey, and that requires communication collaboration, education, 473 00:29:02,520 --> 00:29:06,560 Speaker 4: and a lot of understanding of each other. So on 474 00:29:06,600 --> 00:29:08,960 Speaker 4: that one, I would just say, we should become students 475 00:29:09,000 --> 00:29:11,600 Speaker 4: of each other so that we can help break through 476 00:29:11,840 --> 00:29:15,560 Speaker 4: sort of the glass ceiling. We can help understand each gender. 477 00:29:15,960 --> 00:29:18,760 Speaker 4: And then also while we focus on gender, we also 478 00:29:18,840 --> 00:29:22,160 Speaker 4: need to understand the next gen because the next gen 479 00:29:22,560 --> 00:29:25,560 Speaker 4: has a very different focus, so we need to also 480 00:29:25,680 --> 00:29:28,520 Speaker 4: bring that into the mix so that the future is 481 00:29:28,600 --> 00:29:30,400 Speaker 4: much more balanced than it is today. 482 00:29:31,040 --> 00:29:33,360 Speaker 2: And you know, on that note, Susan, thank you so 483 00:29:33,440 --> 00:29:36,840 Speaker 2: much for joining us today and thank you for blessing 484 00:29:36,880 --> 00:29:39,800 Speaker 2: us with your time. Of course, that was Susan Chender, 485 00:29:39,840 --> 00:29:41,720 Speaker 2: head of each Specific at Blackrock. 486 00:29:42,280 --> 00:29:45,760 Speaker 3: This podcast was produced by Clara Chen. You've been listening 487 00:29:45,800 --> 00:29:46,680 Speaker 3: to Tiger Money.