SRP Asia-Pacific Awards Report 2017

SRP Asia-Pacific Awards Report 217

SRP Asia-Pacific Awards Report 217 Editorial: Richard Jory, Iveta Pekova Data: Tiago Fernandes, Iveta Pekova, Georgi Marinov, Anita Nikolova, Veselin Valchev If you are interested in having a similar bespoke report produced for your organization, please contact Kris Deslagmeulder at (44 27) 779 821 or email Kris.deslagmeulder@StructuredRetailProducts.com

SRP Asia Awards Report 217 1 1.1 Introduction Structured Retail Products Limited (SRP), part of the Euromoney group of companies, is a research firm based in London, New York, Hong Kong and Sofia, providing research and training services related to all aspects of structured products. The company was founded in 21 and our clients include hundreds of blue chip companies from around the world including all of the major global financial services groups, financial regulators, stock exchanges, index providers and professional services firms. SRP also owns and maintains the specialist industry website StructuredRetailProducts.com. The site was launched in January 23, and has become the leading online information resource for the global retail structured products industry. With nearly 5 registered users and more than 13 million product listings, the website is the primary information source for a wide range of businesses involved in the manufacture and distribution of structured investment products globally. The service is used by financial regulators, index providers, investment banks, stock exchanges, retail banks, insurance companies, asset and wealth managers, consultants, lawyers and other firms involved in the market. Copyright information This report is copyright 217 Structured Retail Products Limited. All Rights Reserved. Reproduction and distribution of this report in any form without prior written permission is strictly prohibited. Furthermore It may not be sold for commercial gain, either in part or in its entirety It may not be photocopied or printed for multiple use, with the exception of within the organization for which it was purchased. It may not be 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 products fraternity across Asia. SRP would like to thank the participants in the SRP survey from February to March 217, whose data underpins this report. Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

2 SRP Asia Awards Report 217 1.2 Scope Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix This report is concerned with the manufacture of structured products in all product forms including wrappers such as funds, notes, bonds, certificates, deposits, life assurance and usually linked to equities, foreign exchange, commodities, hybrids and interest rates underlyings. This report presents information on structured retail products markets across the Asia-Pacific region. Although the term structured product is widely used in the financial community, the term often means different things to different people. 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 a number of 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 we exclude simple warrants, listed options and futures, and delta one products such as tracker funds, exchange-traded funds and exchange-traded notes, reference to these products may be made, where relevant. The report is based on both quantitative and qualitative analysis. StructuredRetailProducts.com (SRP) surveyed 281 structured products distributors across Asia between February and March 216, 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: 1. A scope, methodology and management summary of the report s key findings 2. An analysis of the structured products market in the Asia- Pacific region based on survey responses 3. Separate analysis of the manufacturers by asset class 4. Analysis of top distributors awards

SRP Asia Awards Report 217 3 1.3 Methodology Description of the Survey Between February and March 217 StructuredRetailProducts. com (SRP) surveyed Asian structured products distributors, receiving 261 responses. The survey was composed of three areas of investigation: Part 1 Quantitative We asked respondents to the survey to specify up to three investment banks that they use for hedging purposes, for each asset class in which the respondent was active, and specify the volume of business for that asset class and the percentage split by bank. Part 2 Qualitative The respondents were then asked to rank the investment banks they dealt with for each asset class as 1, 2 or 3 (where 1 = below average, 2 = average and 3 = above average) according to four key service categories: Price competitiveness Understanding client needs and after sales service Innovation and structuring capability Part 3 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 1% of their activity and internal structuring desks. Also votes were not included in the survey where: Providers vote for themselves We cannot confirm the identity of the respondent A respondent votes more than once and we cannot resolve the duplication The survey results underpinned the 217 Asia-Pacific Alternatives & Wealth Management Awards, which were handed out on May 24, 217 during the 4 th Annual Asia-Pacific Structured Products & Derivatives Conference in London. 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. Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

4 SRP Asia Awards Report 217 2. SRP 217 Awards Survey Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Service quality continues to improve in Asia Pacific It s good news for Asian investors. While the quality of service they and the distributors of structured products receive is, again, better than in either Europe or the Americas, it just got better, according to the SRP Asia-Pacific Awards Survey 217. The results of a survey that was completed in February and March show that, in terms of the three main parameters, Asian investors and distributors have good reason to be optimistic. Even better news for the fiercely competitive Asian market is that price competitiveness was the leading component of the services in which Asian investment banks excelled, with the average satisfaction rising from 2.58 (out of 3) to 2.79, with scoring an extraordinary 2.95 in this category, according to the opinions of half of the around 3 voters in the survey. Not far behind are, at 2.85,, at 2.81, and JP Morgan, at 2.79. But don t get too excited about the facilities on offer from c. Whether manufacturers in Asia-Pacific are indeed great, or the buyside is just more easily impressed, the voters are so moved that their 15th most loved provider of prices scores a pretty fine 2.55. Although the quality of service is high in in the region, it is being provided by fewer banks, with one survey respondent bemoaning the lack of issuers and their overdependence on fixed income-only ideas, while also alerting that regulatory arbitrage to bypass fixed-income taxation can hurt the industry. When it comes to other asset classes, there is a dispersion of equity performances and, therefore, the need for increasingly engaged, active portfolio management, according to another respondent. Clearly, the need for advice and education on asset allocation remains important. The top two of SG and are equally appreciated for their abilities in innovation and structuring, but also for their understanding of client needs and aftersales service, which is this year rated in a single category. The average score for innovation and structuring capability in 216 comes in at 2.72, well above the 2.56 in the previous year s survey, while an appreciation of investor needs and aftersales in Asia Pacific was rated 2.66 in this year s poll. South Korea remains the largest market in the region, although sales volumes dropped by around 2% in 216, to US$7bn; China followed, equalling the previous year and maintaining a volume of over US$4bn. The market in Japan shrunk, slipping below a resurgent Hong Kong, which also jumped ahead of Taiwan. Singapore, Australia, India and Thailand maintained small markets of publicly distributed retail products, while the overall amount of structured products transacted in the whole region rose as the number of issues dropped: the size of deals is increasing, which is an encouraging sign of a healthy market. A residual fear comes in the form of the possibility that a rise in interest rate may cause the money outflow from Asia, according to another of those polled. The US rate hike was cited as a concern by many, not least for the damaging effect, apparently, it would have on the creation of longer term products. Those with a greater breadth of worry capacity added to their fear of rising interest rates with a bucket of potential woes based around changes to the end of the boom cycle, US policy, and the European General Election, an insight presumably based around Brexit although perhaps corralling a general fear of political uncertainty that has been stirred up in European member states other than the UK. Amid all this general and international fear, local regulators and regulations were named as impediments to the development of structured products in various of Asia s most active national markets. Those more inclined to spot the trends that will support longer term progress in these financial markets expect more and more offerings from local competitors, while acknowledging a stricter local regulator requirements, a feature of the market that is increasingly being adopted as a strength in European markets. Expectations for products, aside from a continuation in the rise in prominence of fund-linked products, include a greater emphasis on leveraged and exchange-traded fund products. And, while more innovation and liquidity is requested from index providers, there is also a desire for more products not linked to benchmarks, particularly if they are equity-linked. One request for merely for a new idea, was trumped by the more specific demand for a new structure with a high guaranteed rate. If ever there was a time to move away from renaming products based merely on sometimes cosmetic tweaks, now is the time to come up with something really new. Over to you.

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6 SRP Asia Awards Report 217 3. Asia Pacific Trends and Predictions Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix What will be the most POPULAR PAYOFFS over the next 12 months for your market? Why? Range 3% Reverse Convertible 3% Worst of Option 5% Digital 1% Knock Out 11% Protected Tracker 2% Accrual 14% The callable payoff will remain the most popular in the Asia- Pacific region over the coming 12 months, according to 5% of all the participants in the SRP Asia-Pacific Alternatives and Wealth Management Awards Survey. Callable products were preferred predominantly in Australia followed by Taiwan and Hong Kong in 216. The next most favoured payoff is the accrual which attracted 14% of the vote mainly from Hong Kong and South Korea. In comparison to 216 projections, the popularity of the accrual structure increased by 4% while similar to Europe market participants continue to foresee economic and political uncertainty in 217. Reverse convertible structures were preferred globally in 216 and used extensively in the Dach region but when it comes to Asia, survey participants do not seem very optimistic about its Dual Currency 1% Shark Fin 1% Callable 5% implementation in the coming 12 months. There was a slight change in the popularity of the knockout and digital payoffs as one of the most preferred structures in the Asian region. Contrasted to 216 projections, the demand for the dual currency structure has decreased by 4% recognized only by Hong Kong and Singapore-based participants. Though shark fin attracted just 1% of the vote, one respondent specified that the market needs pure equity participation structures. Autocallables remain the focus of South Korean market where Indices autocallable ELNs with shorter tenor are needed, said one respondent. While Taiwanese respondents stated that there was a need for more products with higher guaranteed return.

SRP Asia Awards Report 217 7 Which of the following investment themes will be the most prominent over the next 12 months? Credit 9% Volatility-based Investments 1% Proprietarty/Custom Indices 1% Equity Emerging Markets 32% Similar to the results from the 216 survey, equities from both emerging and developed markets are expected to continue the same trend over the next 12 months due to increased demand for diversifying investments into global markets, according to 78% of the participants in the survey. Environmental Social Governance 2% Equity Developed Markets 46% Only 1% of all interviewees are optimistic about the future of proprietary or custom indices in Asia, while ten percent of participant expect volatility-based investments to continue showing good potential due to the chance of achieving stable market returns. Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

8 SRP Asia Awards Report 217 4. Personality of the Year, Asia Pacific Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix SRP Asia-Pacific 217 Personality of the Year: Adam Cowperthwaite It is unusual to be able to trace a US$5bn, market-leading structured product to one original trade. This year s SRP Personality of the Year for Asia-Pacific, Adam Cowperthwaite (pictured) can do just that. The first ever accumulator trade in Asia, which he structured while covering private banks as a salesman at JP Morgan in 22, started a phenomenon that has dominated structured products in Asia for the past 15 years. From simple beginnings as a re-work of a corporate equity derivatives strategy that Cowperthwaite had previously seen in London, to infamy as the highly-leveraged I kill you later trade in the depths of the financial crisis, the accumulator is still one of the defining structured products in Asian private banking. Cowperthwaite entered the equity derivatives world somewhat randomly through a summer internship at Robert Fleming in 1994, and then re- joined them in 1996 as a full-time structurer. Basket warrants were pretty exotic and pricing anything non-vanilla was cumbersome, he said. The equity derivative traders had to have the air conditioning ducts redirected to counteract the heat emitted by a new supercomputer that had been delivered. In structuring, for anything complicated, we started the Monte Carlo simulator on Friday evening, in order to have the result on Monday morning. In 1998, Cowperthwaite shifted to fixed-income derivatives in the treasury group at the freshly demutualised Halifax, although his passion for equity derivatives took him to Chase Manhattan two years later. The merger between Chase and JP Morgan followed: at Chase, equity derivatives had been relatively small, but JP Morgan was enormous, he said. Probably a third of the football field-sized equity trading floor at JP Morgan s building in Blackfriars was given over to derivatives. Cowperthwaite focused on structuring and automation that would increase the efficiency of pricing and idea generation. A chance business meeting in Tokyo led to a move from structuring to sales, and from London to Hong Kong, Cowperthwaite s family home. There, together with colleague Daryl Chen, he took over retail sales covering private banks, insurance companies and retail banks. That s when I did the first accumulator. The deal was done for JP Morgan Private Bank and arose from discussions with a relationship manager whose client was disappointed that he had missed the boat in a rallying market. I had seen a similar idea used in reverse in corporate equity derivatives in London, he said. The reworked idea allowed the client to buy the shares at the lower price that he had missed the previous week. His second deal soon followed, this time with Private Bank. The first accumulator had monthly observations and was traded as 24 separate options a pair of knockout puts and knockout calls for each observation. Daily observations were impossible because we would have had to book 48 options. The next advance, using 48 options to give bimonthly observations, came quickly when they worked out how to book the options in a semi-automated manner. Some individual trades at that time were large US$5m notional on HSBC shares was a notable example. In 23, changes to the offering rules in Hong Kong allowed structured notes to be sold to retail investors. Cowperthwaite moved to Credit Suisse to exploit the potential for taking structured products to the broader investing public. The possibility of broadening access to structured products to the public was an exciting prospect, said Cowperthwaite. While JP Morgan was not inclined to follow the retail route, Credit Suisse s management was keen. At the time, equity derivatives sales at the Swiss bank was relatively small, primarily servicing hedge funds and OTC hedges for retail structured funds. The private bank business was limited - and they had never done an accumulator. Cowperthwaite quickly wrote a pricing script and the head of trading agreed to give it a try. The original script was used for the next two years before a closed-form model was written, which is quite amazing now, considering the volumes that we traded. Cowperthwaite also developed a simple pricing tool that allowed salespeople to price very

SRP Asia Awards Report 217 9 quickly, by simply inputting the stock code and a volatility level from the traders. The ability to price trades instantly gave them a huge competitive advantage, and allowed them to capture a large market share. Over the next few years, as well as developing private bank coverage in Hong Kong and Singapore, Cowperthwaite built out the Hong Kong, Taiwan and Australia retail businesses including the launch of three ground-breaking, awardwinning listed capital guaranteed funds in Australia. When the financial crisis hit, however, volumes slumped across the industry and the bank displaced much of its equity derivatives team with a buy-out of a larger team from. Cowperthwaite joined Daiwa Capital Markets, as head of equity derivative sales for Asia ex Japan, and set-up a business covering private banks, hedge funds and South Korean securities houses. The tsunami in Japan was followed by a shutting down of the international expansion initiative at a bank badly affected by the devastation. Eighteen months at Hubbis, as a shareholder and chief operating officer followed, before the call came from Private Bank, where Cowperthwaite is now a managing director and head of equity, Asia Pacific. It s not really buyside and feels a lot like going back to being a structurer, said Cowperthwaite. The approach is more rounded, though. We focus primarily on the investment rationale, and then consider a range of implementation strategies and products to suit the client s profile. My focus is also increasingly on facilitating faster and more proactive, twoway advice on the full range of investments that clients hold in their portfolios. This approach is attractive to clients and is winning us both praise and a greater share of their assets. An overriding theme in the investment strategies that Cowperthwaite proposes is simplicity. The industry used to offer very complex products, not just in terms of risk, but also in terms of the convoluted payout profiles, he said. These days, most products are relatively straightforward, which is definitely a good thing. There is also still a strong need for professionals to actively educate their clients. After 2 years, it is easy to assume the client understands what you are talking about, but you need to remember that, for most people, structured products are a small part of their portfolio and of their overall wealth strategy, and they haven t necessarily spent a lot of time working with them. Related stories: SRP Asia-Pacific Awards 217 Shortlist SRP Europe 217 Personality of the Year: Klaus Oppermann SRP 3-minute Q&A: Adam Cowperthwaite, Private Bank The Personality of the Year Award will be presented to Cowperthwaite at the SRP Asia Pacific 217 Awards Dinner, which will take place on the evening of Thursday 25 May at The Park Royal Hotel on Beach Road in Singapore. Cowperthwaite was chosen on the basis of receiving the highest number of votes from the around 3 respondents to the SRP Asia-Pacific Awards Survey 217. The SRP Asia-Pacific Alternatives & Wealth Management Conference 217 will take place on May 24 & 25 in The Park Royal Hotel on Beach Road in Singapore: the agenda and details of the conference are available at this link. For registration or information, please contact Helga Tirk at helga@structuredretailproducts.com. Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

1 SRP Asia Awards Report 217 5. Manufacturer Awards Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Manufacturer awards are calculated on the basis of three factors: The average evaluation score as per buy-side respondents for manufacturers across all asset classes (4% weighting). Industry peer review, whereby each manufacturer selects top three competitors for each award category (2% weighting). Aggregated volume data of structured products for the period between February 1, 216 to January 31, 217 (4% weighting). Best House, Asia-Pacific Market Share by Volume 13% Others 15% 1% 16% Best House, South Asia Market Share by Volume 1% Others 24% 23% HSBC % 39% Societe Generale 16% JPMorgan 6% Societe Generale 46% Overall Score and Industry Peer Review % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria Overall Score and Industry Peer Review JPMorgan HSBC % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria

SRP Asia Awards Report 217 11 Best House, China Market Share by Volume Best House, Japan Market Share by Volume Merrill Lynch 1% Best House, South Korea Market Share by Volume 47% Others 39% Others 1% Not able to disclose 2% JPMorgan 5% JPMorgan 19% BNY Mellon 12% Nomura 6% BNP Paribas 14% 2% Sociate Generale 16% Overall Score and Industry Peer Review JPMorgan Credit Suisse % Overall Score and Industry Peer Review Merrill Lynch BNY Mellon BNP Paribas Nomura JPMorgan % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria Overall Score and Industry Peer Review JPMorgan % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

12 SRP Asia Awards Report 217 Best House, Hong Kong Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Market Share by Volume % Societe Generale 6% 19% Best House, Taiwan Market Share by Volume Credit Suisse 8% Barclays 7% Others 22% Others 22% 15% Best House, Equities Market Share by Volume Others 15% 9% % 2% 18% 22% BNP Paribas 35% Societe Generale 26% 38% 18% Overall Score and Industry Peer Review BNP Paribas % Overall Score and Industry Peer Review Credit Suisse Barclays % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria Overall Score and Industry Peer Review % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria

SRP Asia Awards Report 217 13 Best House, Foriegn Exchange Market Share by Volume % % Societe Generale 4% Best House, Hybrids Market Share by Volume 26% Societe Generale 1% 28% Best House, Interest Rates Market Share by Volume Others 41% 1% Nomura % % Others 14% 1% 4% BNP Paribas 54% 63% JPMorgan 32% Credit Agricole 22% Overall Score and Industry Peer Review BNP Paribas % Overall Score and Industry Peer Review Nomura % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria Overall Score and Industry Peer Review Credit Agricole JPMorgan % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

14 SRP Asia Awards Report 217 Best House, Commodities Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Market Share by Volume Sociate Generale 4% Best House, Credit Market Share by Volume Others 12% 11% 1% JPMorgan 2% % Credit Suisse % 84% 4% Societe Generale 4% 78% Overall Score and Industry Peer Review % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria Overall Score and Industry Peer Review JPMorgan Credit Suisse % 5% 1% 15% 2% 25% 3% 35% 4% Industry peer review Overall score based on four qualitative criteria

SRP Asia Awards Report 217 15 6. Distributor Awards The award for Best Distributor is based on the full sales and performance data per product distributed by the buyside between February 1, 216 and January 31, 217. Strike date is relevant for best sales and maturity date is relevant for best performance. The results of both are amalgamated to go towards the best distributor award. Sales volume to be the total actual 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 will be weighted according to its sales volume to give a weighted average performance of the distributor s portfolio of maturing products for the period. 6.1 Best Distributor, Asia-Pacific Outstanding Sales Volume & Product Issuance 92, 9, 88, 86, 84, 82, 8, 212 213 214 215 216 Top 5 Distributors by Sales (US$bn) 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, Agricultural Ping An Group Mirae Asset KB Financial Group 6, 5, 4, 3, 2, 1, Edelweiss Capital Sales volume & issuance 45, 4, 35, 3, 25, 2, 15, 1, 5, Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 213 214 215 216 217 Edelweiss Capital KB Financial Group Mirae Asset Agricultural Ping An Group 45, 4, 35, 3, 25, 2, 15, 1, 5, Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

16 SRP Asia Awards Report 217 6.2 Best Distributor, China Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Outstanding Sales Volume & Product Issuance 35, 3, 25, 2, 15, 1, 5, Top 5 Distributors by Sales (US$bn) 21,6 19,2 16,8 14,4 12, 9,6 7,2 4,8 2,4 213 214 215 216 217 6.3 Best Distributor, Hong Kong Outstanding Sales Volume & Product Issuance 25, 2, 15, 1, 5, 213 214 215 Top 5 Distributors by Sales (US$bn) 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, Agricultural Industrial and Commercial Shenzen Ping An Bank Nanyang Commercial Bank HSBC Bank Hang Seng Bank Bank of East Asia 216 217 Hang Seng Bank 1,4 1,2 1, 8 6 4 2 Societe Generale 5, 4, 3, 2, 1, (Hong Kong) Sales volume & issuance 6, 5, 4, 3, 2, 1, Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 Agricultural Shenzen Ping An Bank Sales volume & issuance Hang Seng Bank Societe Generale Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 2, 15, 1, 5, 213 214 215 216 217 213 Nanyang Commercial Bank 214 Hang Seng Bank 215 Industrial and Commercial 216 (Hong Kong) HSBC Bank 217 Bank of East Asia 2,5 2, 1,5 1, 5 7, 6, 5, 4, 3, 2, 1,

SRP Asia Awards Report 217 17 6.4 Best Distributor, Japan Outstanding Sales Volume & Product Issuance 63, 625, 62, 615, 61, 65, Top 5 Distributors by Sales (US$bn) 3,5 3, 2,5 2, 1,5 1, 5 213 214 215 6.5 Best Distributor, Taiwan 216 Outstanding Sales Volume & Product Issuance 3, 25, 2, 15, 1, 5, Top 5 Distributors by Sales (US$bn) 1,6 1,4 1,2 1, 8 6 4 2 Mitsubishi UFJ Morgan Stanley SMBC Nikko Tokai Tokyo 217 213 214 215 216 217 Aozora DBS Bank BNP Paribas Fubon Bank Cathay United Bank Mizuho 3,2 3,1 3, 2,9 2,8 2,7 2,6 2,5 2,4 2,3 3,5 3, 2,5 2, 1,5 1, 5 CTBC Bank Sales volume & issuance 5, 4, 3, 2, 1, Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 Mizuho Aozora Sales volume & issuance Mitsubishi UFJ Morgan Stanley SMBC Nikko Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 14, 12, 1, 8, 6, 4, 2, 213 Cathay United Bank 214 CTBC Bank 215 Fubon Bank 216 DBS Bank 217 213 214 215 216 217 5 Tokai Tokyo BNP Paribas 2, 1,5 1, 2, 1,5 1, 5 Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

18 SRP Asia Awards Report 217 6.6 Best Distributor, South Korea Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Outstanding Sales Volume & Product Issuance 7, 6, 5, 4, 3, 2, 1, 213 214 215 216 217 Top 5 Distributors by Sales (US$bn) 12, 1, 8, 6, 4, 2, 6.7 Best Distributor, South and Southeast Asia Outstanding Sales Volume & Product Issuance 35, 3, 25, 2, 15, 1, 5, Top 5 Distributors by Sales (US$bn) 3, 2,5 2, 1,5 1, 5 Mirae Asset NH Investment & 213 214 215 216 217 KB Investment & Korea Investment & 16, 14, 12, 1, 8, 6, 4, 2, Shinyoung 4, 3,5 3, 2,5 2, 1,5 1, 5 Sales volume & issuance 6, 5, 4, 3, 2, 1, Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 Sales volume & issuance Mirae Asset Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 7, 6, 5, 4, 3, 2, 1, 213 214 215 216 217 Shinyoung Korea Investment & KB Investment & 213 214 215 216 217 16, 14, 12, 1, 8, 6, 4, 2, NH Investment & 5, 4, 3, 2, 1, Standard Chartered United Overseaas Bank DBS Edelweiss Capital Phatra Capital Edelweiss Capital Phatra Capital DBS Standard Chartered United Overseaas Bank

SRP Asia Awards Report 217 19 6.8 Best Capital Protected Distributor, Asia-Pacific Outstanding Sales Volume & Product Issuance 56, 55, 54, 53, 52, 51, 5, 213 214 215 216 217 Top 5 Distributors by Sales (US$bn) 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, 6.5 Best Yield Enhancement Distributor, Asia-Pacific Outstanding Sales Volume & Product Issuance 5, 4, 3, 2, 1, Top 5 Distributors by Sales (US$bn) 25, 2, 15, 1, 5, Ping An Group HSBC Industrial and Commercial 213 214 215 216 217 16, 14, 12, 1, 8, 6, 4, 2, Edelweiss Capital 5, 4, 3, 2, 1, Sales volume & issuance 18, 16, 14, 12, 1, 8, 6, 4, 2, Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 Edelweiss Capital Sales volume & issuance HSBC Industrial and Commercial Top 5 Distributors by Weighted-Average Performance (%) 1 8 6 4 2 3, 25, 2, 15, 1, 5, 213 214 215 216 217 213 214 215 216 217 Ping An Group 12, 1, 8, 6, 4, 2, 35, 3, 25, 2, 15, 1, 5, Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Agricultural Samsung Korea Investment Hyundai Edelweiss Capital Edelweiss Capital Korea Investment Hyundai Samsung Agricultural

2 SRP Asia Awards Report 217 7. Shortlists Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix 7.1 Manufacturer Awards Best House, Asia Pacific Best House, South and Southeast Asia HSBC JPMorgan Best House, South Korea JP Morgan Best House, Equities Best House, Interest Rates Credit Agricole JP Morgan Best House, China Credit Suisse JP Morgan Best House, Hong Kong BNP Paribas Best House, FX BNP Paribas Best House, Commodities Best House, Japan BNP Paribas BNY Mellon JPMorgan Merrill Lynch Nomura Best House, Taiwan Barclays Credit Suisse Best House, Hybrids Nomura Best House, Warrants Credit Suisse JP Morgan

SRP Asia Awards Report 217 21 7.2 Distributor Awards Best Distributor, Asia Pacific Agricultural Edelweiss Capital KB Financial Group Mirae Asset Ping An Group Best Distributor, Greater China: China, Hong Kong, Taiwan Agricultural Cathay HSBC Ping An Group Best Private Bank, Asia- Pacific Credit Suisse Hana Financial Group KDB Financial Group Best Capital Protected Distributor, Asia-Pacific Ping An Group Edelweiss Capital HSBC Industrial and Commercial Bank of China Best House, Warrants Credit Suisse HSBC JP Morgan Best Performance, Asia-Pacific Edelweiss Capital HSBC Phatra Capital Shinyoung Best Distributor, Northeast Asia: Japan, South Korea Hana Financial Group Korea Investment Mirae Asset Samsung Shinyoung Best Private Bank, Northeast Asia: Japan, South Korea Mirae Asset Dongbu Eugene Investment & KB Financial Group Nonghyup Best Yield Enhancement Distributor, Asia-Pacific Agricultural Edelweiss Capital Hyundai Korea Investment Samsung Best Distributor, South and Southeast Asia DBS Edelweiss Capital Phatra Capital Standard Chartered UOB Best Issuer, Asia-Pacific DBS Bank Kommuninvest i Sverige Svensk Exportkredit Best Private Bank South and Southeast Asia CIMB Credit Suisse DBS Edelweiss Capital Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

22 SRP Asia Awards Report 217 7. Shortlists (continued) Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix 7.3 Service Providers Best SP and Derivatives Exchange, Asia-Pacific Australian Stock Exchange Hong Kong Stock Exchange National Stock Exchange of India Singapore Stock Exchange Taiwan Stock Exchange Best Issuance Platform, Asia-Pacific BNP Paribas - Smart Derivatives/CORTEX Krystal Contineo SG Alpha - Equity Investor Best Index Provider, Asia-Pacific FTSE Hang Seng MSCI S&P Dow Jones Stoxx 7.4 Other Awards Best Educational Initiative, Asia Pacific Credit Agricole CIB S&P Dow Jones Best Insurance Deal Subject to editorial adjudication Best Pricing and Risk Provider, Asia-Pacific Derivatives Capital Murex Numerix SunGard SuperDerivatives Best Law Firm, Asia-Pacific Allen & Overy Anderson Mori & Tsunematsu Kim & Chang Linklaters Simmons & Simmons Best Smart Beta Index Provider, Asia-Pacific FTSE MSCI Nasdaq S&P Dow Jones Stoxx Best ETF House, Asia Pacific Blackrock Commerz CSOP Asset Management Mirae Asset Management Samsung Asset Management Best Structured Fund Deal Subject to editorial adjudication Best Proprietary Index Provider, Asia- Pacific Barclays BNP Paribas JP Morgan Société Générale Best Technology Provider, Asia-Pacific AG Delta Bloomberg Fincad FinIQ Numerix Deal of the Year Edelweiss Capital Mirae Asset Mitsubishi UFJ Morgan Stanley Industrial and Commercial Personality of the Year To be announced at the Awards ceremony

SRP Asia Awards Report 217 23 8. Awards Results 8.1 Best House and Distributor Overall Winners Manufacturer Awards Best House, Asia Pacific Best House, Equities Best House, Foreign Exchange BNP Paribas Best House, Credit Best House, Hybrids Distributor Awards Best Distributor, Asia Pacific Agricultural Best Distributor, Greater China Agricultural Best Distributor, Northeast Asia Mirae Asset Best Distributor, South and Southeast Asia Edelweiss Capital Best House, Interest Rates JP Morgan Best House, Commodities Best House, South and Southeast Asia Best House, China Best House, Japan JP Morgan Best Private Bank, Asia - Pacific Best Private Bank, Northeast Asia Mirae Asset Best Private Bank, South and Southeast Asia DBS Best Capital Protected Distributor, Asia - Pacific Ping An Bank Best House, South Korea Best House, Hong Kong BNP Paribas Best House, Taiwan Best Performance, Asia - Pacific Edelweiss Capital Best House, Warrants Best Yield Enhancement Distributor, Asia - Pacific Agricultural Best Issuer, Asia - Pacific Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix

24 SRP Asia Awards Report 217 Distributor Awards Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Best SP and Derivatives Exchange, Asia - Pacific Hong Kong Stock Exchange Best Index Provider, Asia - Pacific S&P Dow Jones Indices Best Smart Beta Index Provider, Asia - Pacific S&P Dow Jones Indices Other Awards Best Educational Initiative, Asia - Pacific Credit Agricole Best ETF House, Asia - Pacific Blackrock Australia Best Distributor Best Performance Macquarie China Best Distributor Agricultural Bank of China Best Performance Hang Seng Bank Hong Kong Best Distributor Hang Seng Bank Best Performance Nanyang Commercial Bank Best Issuance Platform, Asia - Pacific BNP Paribas Smart Derivatives Best Law Firm, Asia - Pacific Linklaters Best Technology Provider, Asia - Pacific Bloomberg Best Structured Fund Deal, Asia - Pacific Personality of the Year Adam Cowperthwaite 8.2 Best Sales and Performance by Region and Country India Best Distributor Edelweiss Capital Best Performance Edelweiss Capital Japan Best Distributor Mitsubishi UFJ Morgan Stanley Best Performance Mizuho Singapore Best Distributor UOB Group Best Performance UOB Group Best Pricing and Risk Provider, Asia - Pacific Numerix Best Insurance Deal, Asia - Pacific Deal of the Year, Asia - Pacific South Korea Best Distributor Mirae Asset Best Performance Shinyoung Taiwan Best Distributor Cathay United Bank Best Performance Cathay United Bank Thailand Best Distributor Phatra Best Performance Phatra

SRP Asia Awards Report 217 25 9. Appendix Analysis of Respondents South Korea 29% Singapore 8% Taiwan 11% Australia 2% Thailand % China 3% Malaysia 2% Country Japan 1% Number of Respondents Australia 6 China 9 Hong Kong 18 India 16 Indonesia 1 Japan 3 Malaysia 5 Singapore 22 South Korea 84 Taiwan 31 India 6% Indonesia % Hong Kong 38% Introduction Asian Overview Asia Summary Manufacturer Awards Distributor Awards Awards Results Appendix Thailand 1

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