Asset manager Cathay Conning seeks Asian growth

Cathay Conning Asset Management, a joint venture between Taiwan's Cathay Financial and US-based Conning Asset Management, wants to grow its Asian business out of Hong Kong by investing in Asian equities.

The fund house will have US$1 billion invested in Asian equities by the end of this year so that it can invest in new asset classes and go beyond its traditional insurance client base.

Mark Konyn, Cathay Conning's chief executive, expects its Asia-focused fund products to attract as much as US$5 billion in the next five to six years.

The fund is expanding its team of 16 people and plans to hire analysts and client relationship managers next year, according to Konyn, who was the chief executive of RCM and Allianz Global Investors for almost 15 years in Asia before joining Cathay Conning in April.

The fund house plans to allocate 20 per cent of its US$1 billion capital to Asian small- and mid-cap companies, an asset class generally regarded as volatile.

Although investors are cautious about taking on risk in this weak market environment, Konyn believes their risk appetite will pick up in the next 18 months on the back of the recovering global economy.

The small- and mid-cap sector will help the firm achieve better returns and expand its client base beyond its traditional insurance clients.