Private Inspiration: Q&A with Jean Chia of Bank of Singapore
Our Private Inspiration series recognizes and celebrates the triumphs of women in the world of private banking.
In this edition, we speak to Jean Chia, Bank of Singapore’s Chief Investment Officer and Head of the Portfolio Management & Research Office.
“Leadership is ultimately about motivating people for success, and you get great results by creating an environment that makes everyone feel that they too can succeed.”
Career
Current role
As CIO of Bank of Singapore, I chair the investment committee, which determines our tactical asset allocation decisions and formulates our house view each month. A formidable research and portfolio management team supports this work, along with key investment leaders in the bank. Collectively, we share hundreds of years of investment experience among us.
My role is like that of a navigator. To chart the investment course, we need to set our bearings right, stay vigilant to the readings of economic conditions, analyze market trends and manage risks. Our eyes are set on the “north star” of delivering long-term sustainable portfolio returns and investment advice for our wealth management clients. Like the navigator on a ship, I do not work alone.
I am especially proud of the team’s diversity in age, gender, nationalities, investing backgrounds and thought processes. We are known as the “United Nations” within Bank of Singapore, with team members from Australia, India, Sri Lanka, Singapore, Southeast Asia, Greater China, Africa, Europe, Switzerland, UK, Middle East, US and Mexico.
Career highlights
Being part of the growth in the wealth management industry in Singapore. When I joined the industry over 15 years ago, it was a leap of faith into a nascent part of the financial sector, compared with the more established investment banking and asset management areas. Private banking continues to be the fastest-growing segment of Singapore’s financial industry and one of the most innovative.
Another key highlight has been grooming young talent and motivating them to do their life’s best work, regardless of rank or title. My own career journey has been marked by having key mentors invested in my career along the way. As a beneficiary of this graciousness, I’m very conscious of becoming a mentor to other talented individuals myself. Witnessing their growth is a reward in and of itself.
Career lowlight
Unsurprisingly, my career lowlights were the financial crises of the past two decades. I had to navigate through the dot-com bubble in 2000 during my asset management career, and the global financial crisis in 2008 within the structured products/derivatives business in wealth management. Even so, those “apocalyptic” moments held precious lessons, as one survives with a whole new level of risk awareness.
One lesson from the tech bubble was a mismatch between investor expectations and time horizons. ‘Technopreneurs’ in year 2000 may have had the right business models but investors’ expectations were misplaced as conditions were not conducive for the model to succeed. Companies that adapted only reaped the rewards decades later. Another lesson is in terms of risk management – the lesson of why diversification is essential is best learned by experiencing it firsthand. In the subsequent crises, you become more attuned to the potential risks coming your way.
Personal
Out of office
Reading has always been my lifelong hobby. As a child, I dreamed of becoming a librarian as I could think of no greater joy than being surrounded by books and stamping due dates with a great big stamp. The closest I have gotten is founding a virtual book club with like-minded colleagues during the pandemic.
One of my favorite books of all time is Onward by Howard Schultz. I was inspired by his story of the very crushing setbacks he faced from being fired from his own company and then rebounding stronger than ever. Reading about the genuine pride he had in Starbucks, especially when referring to the company’s baristas as “partners.” Very few companies exhibit this level of pride.
Lockdown wind-down strategy
I discovered the joy of long walks as a relief from a full day of back-to-back Skype meetings. These walking breaks were precious opportunities to connect with friends and family, while discovering less-trodden trails in Singapore.
One personal objective this year
I decided to get more creative this year, having discovered a new craft in Chinese calligraphy – a skill I am determined to master this year. There is something subtly elegant about Chinese verse written with brush strokes.
Outlook
Response to the COVID-19 crisis
Rethinking the role of the CIO and research was critical in a time of crisis. With the unprecedented nature of policy actions and market volatility, our priorities were timely investment calls highlighting opportunities and risks, presenting high conviction investment strategy and managing client portfolios to weather the volatility. Our communication to relationship managers and clients was more direct given the limitations during the lockdown, and digital channels like social media, webinars and podcasts helped amplify the key messages.
I also learned to balance professional expectations with communication and empathy. Flexibility in work and family life helped many young parents juggle childcare with work responsibilities.
Trends this year
I think the sustainability agenda will finally go beyond slogans and headline ambitions as the US, China and the rest of Asia gets serious about tackling the climate crisis.
To avoid a dystopian future where the natural environment and future generations are stripped of their vitality, we need an economic ecosystem that can urgently address the climate challenge by allocating capital responsibly. 2021 will be a year of global economic recovery as borders reopen and economic activity resumes. However, the pandemic has left permanent scars on some parts of the economy, and the uneven nature of recovery may pose policy challenges for governments. Nursing the economy back to health will require more than near-term relief and paychecks for disenfranchised parts of society. Job creation and new growth areas will remain a priority.
I think this focus on environmental, social, and corporate governance (ESG) comes at a perfect time. I think it’s traditionally taken on a European lens. Investors need to move beyond exclusion to deepen understanding of the local context in emerging markets a lot better. It’s encouraging that key stakeholders are focusing on transition and measuring this more accurately in Asia.
To quote a Chinese saying: “Our forefathers grew trees, future generations enjoyed the shade.”
The onus for our generation is to pivot the environmental, social, political and economic ecosystem so that future generations will not just survive, but thrive.
Greatest opportunities this year
As Asian economies benefit from being first-in-first-out of the pandemic, we expect outperformance in Asia ex-Japan equities, especially for firms exposed to cyclical recovery such as real estate and financials. We upgraded US equities in January on the back of the ‘blue wave’ and a massive US fiscal boost, focused on infrastructure spending aligned with the green agenda. While market volatility, inflationary expectations and the steepening yield curve remain a concern, we believe the Fed will likely tolerate modest inflation overshoots and keep the short end of the curve anchored. Hence our preference for High Yield over Investment Grade both in terms of duration and relative value. Within Emerging Markets fixed income, we favor Asian credit, especially China, thanks to resilient fundamentals and attractive yields.
All around the world, exciting innovative business models, with sustainability-related objectives, present investment opportunities. Alternative investments, including real estate and private equity, will provide diversification within portfolios, as well as appropriate usage of portfolio hedges.
The role of technology
Technology will play two roles, as both an enabler and a value driver. The rapid pace of digital adoption due to the pandemic is a catalyst for change in many industries, including retail, finance, healthcare and communication, and will inevitably require investments in technology.
It will be a value driver as it goes hand-in-hand with the ESG agenda. Electric vehicles and battery technology innovations support de-carbonization efforts, and the digitization of financial services will democratize access to capital for rural communities and improve livelihoods.
As with the natural world, the survivors of each crisis will be individuals, companies and countries that are adaptive to change.
Inspiration
How banking can drive inclusivity
Management teams who are prepared to challenge the status quo and resist group-think can handle curved balls better. Banks in the region went through this litmus test during the pandemic and will likely face more unprecedented and existential challenges this decade.
As digital banks and technology platforms edge into the ASEAN banking arena, there is greater urgency to assemble “A-Teams” to handle this challenge. It is no surprise then that talented individuals (regardless of background) should join the fold.
Leadership diversity, in terms of gender, age, experience and cultural backgrounds, will be critical as part of an adaptive management team. My philosophy is that people should be hired because of their skillset, mindset, and ability to contribute to the team. Leadership is ultimately about motivating people for success, and you get great results by creating an environment that makes everyone feel that they too can succeed.
How individuals, companies, and society can drive change
The nature of “work” as we know it is changing rapidly. World-class companies ought to focus on what an individual brings to the table in terms of skill-sets, capabilities and thought process. In the book How Google Works by Eric Schmidt and Jonathan Rosenberg, the two former founding executives said the most important job of a manager is hiring. Identifying the best, hungriest, most talented, passionate individuals with commitment and integrity will by nature result in diversity in teams. Not cronyism, not hiring for same-ness.
I have never been one for a 9-to-5, cog-in-the-wheel type of work culture. I firmly believe that employees who want to make a difference in their organizations will take ownership of issues, both big and small.
There are encouraging signs that women are also more prepared to step up to leadership roles and there are so many role models. Over the past two years, many global leadership roles in international economics and finance have been taken up by women for the first time: Christine Lagarde as President of the ECB, Janet Yellen as US Treasury Secretary and Ngozi Okonjo-Iweala as Director-General of the World Trade Organization. Here in Singapore, OCBC Group is a trailblazer as our incoming CEO Helen Wong will be the first woman chief executive of a Singapore bank. With a unique ability to stay grounded while achieving greatness, women’s focus to “just get things done” will be an edge in an age of authentic leadership.
Advice for your younger self
Embody curiosity, courage and commitment. Be prepared to roll up my sleeves and take on a new area of expertise through sheer curiosity, have the courage to effect change and overcome adversity, and be committed to the success of my team and organization.
I would not change anything that has happened in my youth. The successes and setbacks I experienced all connect to form a path that is uniquely mine.
The information and opinions expressed herein reflect the opinion and views of the interviewee at the time of writing; they are not necessarily representative of the views of Bank of Singapore.
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