Credit Suisse Names Myo Schollum to Japan Prime Services Role
Credit Suisse Group AG, Switzerland’s second-largest bank, appointed Myo Schollum as head of prime services coverage in Japan as part of efforts to expand the business catering to hedge funds.
Schollum, 35, is replacing Yoji Koga, who retired from the financial industry at the end of April, said Matt Pecot, the head of Asia-Pacific prime services at Credit Suisse in Hong Kong. Schollum, who will relocate from Singapore, will report to Kevin Meehan, the head of prime coverage Asia-Pacific in Hong Kong, and Kyoya Okazawa, head of equities in Japan.
Credit Suisse has been boosting market share in the prime- services business in the wake of the global financial crisis in expectation that revenue will pick up as hedge funds rebound. The appointment is part of the bank’s effort to be the leading prime broker in Japan, where the country’s hedge funds are the best performers globally this year, Pecot said.
“We’re actually shifting people and talent into Japan, as opposed to a lot of other prime brokers who are actually pulling people away from there,” Pecot said in a telephone interview. “From an investor perspective within Asia-Pacific, Japan is probably the most interesting market for global hedge funds right now.”
Additional Hiring
As part of its efforts to strengthen coverage in Japan, Credit Suisse plans to hire “selectively” one to two people for its futures business, Pecot said. Among the latest additions to the Japan business were Warren Goward, who shifted from London late last year; Scott Shenk from Bank of America Corp.’s Merrill Lynch & Co. unit in Japan in December, and Moses Lee from Morgan Stanley in January, according to Credit Suisse.
Prime brokerages offer hedge funds services such as clearing, custody, securities lending and financing for assets. They also introduce fund managers to investors.
The Eurekahedge Japan Hedge Fund Index has returned 1.6 percent this year through June, making it the best-performing gauge among five global regional indexes, according to Eurekahedge Pte. Last year, Japan-focused hedge funds returned 7.3 percent, compared with 20 percent by the global index and 27 percent by the gauge measuring Asia-focused hedge funds.
The hedge-fund industry may attract $222 billion of capital this year, according to a Deutsche Bank AG survey of investors in March, marking the first annual net inflow since the financial crisis hit in 2007.
Boosting Market Share
Credit Suisse ranked No. 4 as a prime broker serving Asian hedge funds in the first quarter this year, accounting for 10 percent of the market share, according to Eurekahedge. In 2007, it ranked fifth, taking up a 6.6 percent market share.
Global hedge funds are showing interest in Japan as they seek potential investors, Pecot said. About 37 percent of Japanese pensions surveyed by JPMorgan Chase & Co.’s asset management unit said they expect to boost allocations to alternative investments, including hedge funds.
“The most common request is, ‘Tell us what is going on with the Japanese pensions and insurance companies regarding their stance towards investing in hedge funds,’” said Pecot. “There seems to be a lot more attention on what the potential appetite from Japanese investors may be for absolute return products.”
Prior to taking the position in Tokyo, Schollum was the head of prime services coverage for Credit Suisse in Singapore, after joining the Zurich-based bank’s prime brokerage client services group in London in 2001, according to the bank. He formerly worked for Deutsche Bank Global Custody in Sydney, Edinburgh and London.
Joseph Leckie will assume responsibility for prime services coverage in Singapore, with a primary focus on originating new business, according to Credit Suisse.
Hedge funds are mostly private pools of capital whose managers participate substantially in the profits from their speculation on whether the prices of assets will rise or fall.
To contact the reporters on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net; Komaki Ito in Tokyo at kito@bloomberg.net
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