SINGAPORE – A career is our most important asset as it enables us to make other investments later on, says Eric Chng, Head of Financial Services Industry.
“People often talk about their investment portfolio as a means of protecting or growing assets. To achieve both of those things, we must first have wealth generation skills.”
Investors buy a stock for its attractive dividend or a bond for its secure fixed income, he says. In the same way, to gain the ability to accumulate and allocate assets, people need to invest in their careers.
Mr. Chng, 49, has worked in the financial markets for more than two decades and is now State Street’s Asia Pacific head of cross-product client solutions for alternative investments and private markets.
Before joining State Street in August 2021, he was regional head of business development at global hedge fund administrator Citco.
Prior to that, he held key management positions at BNY Mellon and senior positions at the Singapore Exchange, Daiwa Capital Markets and Societe Generale Corporate and Investment Banking.
“I have had a unique career path in which I have held roles from front to back office… My exposure to investors of all sizes and complexities has given me a deep understanding of the trends affecting our world,” he says.
He notes that Asia Pacific has been the growth engine for State Street’s global business. “The alternative wealth management segment, which I oversee, is gaining market share and will continue to be a significant contributor to the growth of our business in the region.”
The Singaporean, who holds a Masters of Business Administration from Australia’s Macquarie Graduate School of Management, admits his passion for work sometimes comes at the expense of personal and family time.
“Balance is important, so I try to remind myself that life is a marathon – you have to sprint every now and then, but you have to find and maintain a good pace so you can breathe a little,” says Mr. Chng, whose Partner works at a global headhunting company. They have a daughter, 17, and a son, 14.
Q: What is in your personal portfolio?
A: My portfolio is very diversified. I invest my money in insurance, stocks, bonds, commodities, real estate and private markets.
Insurance is important in my personal portfolio. With a lower disposable income in my early years, I tended to buy unit-linked policies that offered less protection. As I progressed in my career, I focused on covering myself with adequate insurance for critical illnesses, accidents and imprisonment via riders. The protection per dollar is much higher and I can use the savings to invest.
Probably because I’m in the financial industry, I believe stocks tend to outperform most other asset classes over time. My allocation is 60 percent equities, 20 percent bonds and 10 percent alternative asset classes. I usually keep 10 percent cash to capitalize on good buying opportunities.
I started my investment journey by analyzing individual stocks that generate high dividend yields and bought to hold them over a 10-year period. I also look at their market cap, fundamentals, and ownership structure. I prefer long-term large dividend stocks held by pension funds and large wealth holders as they tend to be more resilient.
Thirty percent of my stock portfolio is direct holdings that I’ve invested in over time. These are mainly stocks from the Asia-Pacific region. The remaining 70 percent is done through discretionary mandates and tends to be ETFs (Exchange Traded Funds), which allow me to build a diversified portfolio globally at a lower cost.
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