hey Christy as ever that's wonderful thank you very much indeed um good evening to those there in the room at the campus of katma in Causeway Bay and to all of you on the phone as well so happy Halloween I'm impressed the actual session's going on and no one's actually out for their fancy dress party but it's great to be here this evening um I'll probably spend maybe 15 or so minutes going through some statistics and some data that we hope you'll find helpful alongside uh an introduction to the choir Association and our qualification as well now I think we have all seen globally that the assets under management in all asset classes both traditional and alternative has smaller and grown exponentially the last few years and some great stats from PWC that came out a month or so ago now of forecasting of growth of a further five and a half percent to 145 trillion dollars by 2025 which is a massive number when I think the industry was just a fraction of that back in 2012. So asset growth is continuing and if you look at what that means for the Asia Pacific we're going to go from um around 16 or 17 trillion as of the end of 2020 and that'll swell to almost 30 trillion so almost two times growth in what we're going to see for the assets and their management within the Asia Pacific that's really being triggered by this significant demand that we're seeing from wealth management groups around the world and with that will come for the businesses that provide products and services they're going to see a massive um kind of surge in the revenues they're actually going to enjoy as well and again here you'll see that liquid asset growth by 2030 for the Egypt Pacific and indeed that wealth management Revenue that we're going to enjoy over the coming few years in front of us now public markets have been phenomenally favorable for the last decade and almost so close to Global financial crisis and we've seen a lot more appetite and interests around private markets in the last few years and that's really been stimulated by how the economy is changing now three groups here that I'm sure we're all familiar with Uber Facebook and Google you can see for those guys most of the value most of the upside for the investors was enjoyed in the pre-ipo of those particular Securities so if you look at what happened for Google they raised 25 million dollars in the private space before they went to IPO and raised a further 1.9 billion dollars when they went public but look at Facebook they actually raised 2.4 billion dollars of private Capital before they took on a further 16 billion when they went public by the time you hear Uber they actually received almost three times as much funding privately before they went publicly if you look at that great graph on the left-hand side all of that value all of that upside all of that money is being enjoyed in that private space so we're really seeing a lot of companies deciding to stay private for longer um versus going out in the IPO world and becoming a public company side by side so this is investors are finally recognizing that diversification is a great thing we've had a bull market run of beta for well over a decade you could have brought a standard and pause or a hang sang index on on a ETF and gone home and made an awful lot of money up until most recently but investors are really thinking much more strongly and much more heavily about diversification they're looking for enhanced performance they're looking for inflation Hedges anything they're looking for yield enhancements as well and that's exactly what's provided with investments into the private markets or into alternative Investments and that's why these numbers are growing for the alternative Investments growth over the last 10 or 15 years and that's set to grow to over 21 if not 22 trillion dollars as we actually enter 2025 and if you look at the sectors that are due to receive the most of that funding both infrastructure and indeed private Equity are going to be big benefactors of the money that's pouring into the private markets as we speak a little bit closer to home the growth here is equally as exciting if not more so the growth that we forecast that will happen here in the Asia Pacific over the coming years is actually again very much concentrated around all things relating to infrastructure and so there's going to be some really interesting areas to explore and some really interesting growth in that kager side that we'll see over the months and the years in front of us and again if you're working in a product or an organization that opportunity is set is significant because by 2026 over one-fifth of all assets and the management will be Alternatives but they'll be delivering over half of their revenues that an organization is actually getting to service and to look after those particular funds as well so a lot of companies in the GP space are looking and rushing to build products to capture that appetite and that growth so if you thoughts I thought I'd put here before I talk about the Kaya programs I think it's interesting as a backdrop to perhaps areas you're thinking about for your own professional development but I think we really are in an investor disruption stage of the evolution of both private markets and public markets there's disruption across the entire value chain you're seeing a lot of consolidation you see a lot of collaboration you've seen a lot of democratization and we've seen tokenization access to more products access to a wider range of investors are providing kind of widespread growth and widespread changes I think for most groups you've got to build your own or promote products by other people or partner who you're going to Wither on the vine and unfortunately Fade Away equally we're seeing that diversification underlined growing across all ends of the investment scale and again tokenization and democratization are really helping with that more massive affluent and reach out money sources finding access to private markets as well I think the big thing we've got to think about is ESG there's been a lot of headlines about that about brainwashing and how that looks the last couple of weeks but I think the outcomes matter increasing to both Millennials and generation Alpha and they're going to see some great things happen around that more philanthropic Pursuits from that particular sector of the investor Community side by side to the institutional investors as well so all roads are absolutely pointing to significant growth significant opportunity massive disruption and with that I feel anyone that wants to work in or looking to be more familiar with how hotels Investments work and it's a good place to be because there's going to be some significant opportunities continuing to be found across the entire sector and notably from here in the Asia Pacific so with that as the backdraw um I know you're here this evening to learn more about the great services that capplan provides to help you with training to pass and to study for the Kaya designation as far as the car organization is concerned we really have a mission to create values and principles around the curriculum that we have built underlining leadership and advocacy within the actual sector and we really wish to have the Kaya Charter as as that independent qualification to help with professionals that are working within the alternative investment sector and as far as our organization is concerned we have over 13 000 members now around the world from over 100 different countries and they come across some 33 different chapters their little kind of cohort style members in various parts of the world that get together we have eight of those here in Asia our biggest group is here in Hong Kong and in fact this is our 20th year this year so there's been a lot of change occur within Kaya in the last few years as a member-based organization we work with a whole raft of academics and different associations we have an author of research and events and Publications that we published and host and look forward to sharing more with you about that over the course of this session and I indeed hope Beyond as well we write a lot there's a phenomenal results or repository of resources available on our website around our thought leadership we just launched a portfolio for the future a couple of months back looking at why we think the 60 40 portfolio is dead and how effective Capital allocation needs to be looked at in a very different way moving forward and just earlier this month back on October the 5th we launched a publication called A Renewed professionalism and if you're Keen to learn more about that particular publication with Christy's blessing we've included a QR code here for you to take a link through to get a feel for the things that we're thinking about here at Kaya and how we need to be thinking about do elements for that portfolio and for that growth as well now we think about the um the the features that Kaya provides it's very much distinguishing yourself and separating yourself from those that perhaps have other professional qualifications but we really think that the relevancy of our curriculum and the current um update of our curriculum provides some great insights to you and to help you with that growth and knowledge now the Chira examination itself is a two-level exam we revise the content regularly one of the challenges truthfully about working in alternative business is they're growing they're changing we're not absolutely Cutting Edge we're bleeding edge by way of what we actually cover and the different features of what we look within the portfolio but we really feel that the future focus of the curriculum ensures that you're ready and familiar with the different things that are actually happening within the alternative investment sector of those two levels to the examination a level one really looks at Professional Standards and ethics and acts as an introduction to Alternative Investments we look at real assets we look at private Securities we look at hedge funds and also Structured Products the whole of level one in the exam stage is both papers are all multiple choice um making it a little bit easier to study and revise and prepare for and then once one has completed and passed level one you may pass and move through to level two now here we really pop in more emerging topics looking at models we look at some of the actual institutional asset owner themes and approaches we look at due diligence and how you select Investments for your alternative Investments portfolio we look at access we look at volatility and for the level two curriculum it's more about the application of competence and understanding so half of the exam is multiple choice and the other half is constructive responses testing your ability to adopt and apply that that's been learned by both level one and also level two so for us within Kai there has been some changes that I mentioned there's some great new things that we've actually added in 2023's curriculum we've refreshed a good deal of the content a lot of the data has been refreshed as well we've got four new emerging topics we've actually added for those that are going to be taking a level two paper and we've got a much broader array of both authors and also industry contributors to round out a more Global feel of what it is we're actually putting within the curriculum itself for the first time our March of 2023 exams will be bundled and what we mean there is we've actually bundled the curriculum into a different access to provide a digital experience to get access to the curriculum um as when you register for the exam as well so we're hoping that'll make the study a little bit easier and I'll talk about that a little bit more in a second and that digital learning platform will really give you a more efficient way of learning an easier way of accessing the data accessing information and some great features to keep your study notes in a bit of a centralized place and be more familiar with how you're going about the your study calendar and so that digital learning platform will provide a great opportunity to have everything online before you're waiting for the maybe the original books to be sent to you via the post um you can go to our website kai.org forward slash candidates there's a massive pool of data and information and downloads that are available for you there um where our study resources are all centralized and if you've not had a chance to look at that part of their website yet we really encourage you to take a look at that and for anybody here this evening on the phone or perhaps there on campus if you are a CFA member and you haven't taken a car examination historically you're eligible to apply for our stackable credential program which means you can migrate straight through to level two of the kai program and actually skip having to take level one I'm very happy to answer any questions about that if there's anybody there in the room or on the phone that wants to learn more about it but for CFA members in good standing that haven't taken the exam before they manage the program as a level two candidate from a costs perspective we've actually reduced cell costs um for our level one exam fees for this next round of um of exam candidates there is an enrollment fee of 400 and then the actual exam registration which includes the digital curriculum is 995 dollars and that's within that early registration window um and then if you miss that registration window the costs for the exam go up to 1395 dollars from a date perspective registration open back on the 3rd of October but the good news is they're open for early registration goes right through to the end of next month so you've got plenty of time to take advantage of that 995 rate if you are thinking about taking your level one exam come March of 2023 once you've gone through both level one and level two and which to become a member there are annual fees at one pays and they're a fee of 350 for those that are based here in Hong Kong um or there's a more affiliate and or a retired fee there as well and you might want to be thinking about as you look at your studies moving forward and to give you a feel for the sort of players that we have who are members obviously the banks the Consultants the fund managers the asset owners and asset allocators are all well versed with our members we have an awful lot of regulators staff that will work within the regulations that are building the blueprint to put all things around alternative Investments together are also our members and worthwhile having a look at and obviously once you've had that membership we think it's about that visibility we provide continued learning and great access to participation to events and things that we're hosting both physically and also virtually for those that aren't able to get to physical events and then just finally what we have here is once one has become a member we actually extend to your digital badge which you can put onto your personal profile on LinkedIn the spotlights you and showcases you in different differentiates you um and that's something which we have put into place in the last couple of years actually we had some support from our members and requests for that digital engagement or that digital Charter holder status that you can put up on your profile now there's a QR code there to link through to our LinkedIn page but I'm very keen to pass the microphone back to Larry um as Christy shared at the beginning of the conversation today cap plan are our longest standing partner and from a preparatory course perspective here and actually indeed around the world and Larry and his team there at Kaplan have been providing live courses for both level one and level two Kaya candidates for many years it's always a pleasure to get together and work we know that most of our members around the world have actually had some help on their studies and find the Rhythm and the rigor that a classroom engagement provides very very assistive and therefore I'm really happy to be here this evening to share this Insight on Kaya and some background on the industry before you get to hear from Larry and his walkthrough of how Kaplan could help you with taking your level one Kaya exam so thank you for your attention we'll wait for the end for questions but I'll hand over here to Larry if I may and uh thank you for taking the time to hear my presentation this evening thanks Christy I'll hand it back if I may thank you well thank you Joe thank you that's great thank you that's excellent presentation yeah thank you [Music] yeah well it is it is very um encouraging to look at these presentations um seeing the growth the strong growth of the industries in the past and also expected to continue in the coming years and um in particular Eastern Asia Pacific okay so there could be strong growth of the industry and also strong growth of the alternative Investments and as Joe point out that there will be more and more disruption in the industries and we have more uh different types of Investments coming up yeah to be added into the portfolio for our clients so it is a very good opportunity for all of us yeah to participate on on the growth yeah but the question is how can we get our share out of the growth yeah how can we enjoy the Industries or participate of the growth of the industries so um okay there we are so we are going to look at the Kaya examinations the curriculum right yeah to to sign in for their examinations and how to become a charter of the career so that you got a a worldwide uh globally recognize the qualification and I think that would be a very um useful door opener yeah for for us for those that who want who want to join the draw the industries and learn a bit more of this um the new trend of the alternative Investments okay all right so uh here we are I am Larry Larry Yoon yeah I'm a full-time lecturer at Kaplan uh before I joined clapman I spent quite a long time yeah in the industries right um I would say in my in my first half of my career I I spent most of most of my time with the traditional Investments it's like a portfolio managers on the on a multi-asset portfolio but as you know that in the old days when we say multi-asset portfolio is mostly is either equities and fixed income okay and then in my second half of the career I move on to private banking and as a portfolio counselor and also a specialist on this managed products uh including all these different kind of funds hedge funds and um private equities so it gave me a lot of opportunities right to learn from the industries yeah so hopefully I can make use of all these uh experience exposures to help you yeah to prepare for the examination and uh okay the agenda we're going to look at the industries and then we'll look at the um the lecture materials and to go through the the approach that here we have in Kaplan uh how to expertise your preparation for the examinations right which we think is very important because the examination actually includes a lot of topics um ah here I just want to highlight a point here yeah for those people who who um sign up for the Kaya examinations comes from a very diverse background right um just look at our classes yeah our students yeah they come from different um different sectors like the the asset owners the Consultants the salespeople yeah or even from the back office yeah I have students from the compliance Department yeah and they are at different levels you know some of those are just like newcomers a new joiners of the company and some others wow uh they are at the management level already okay so it's very diverse background okay that is uh what we're facing here yeah and some of those are quite familiar with some particular topics areas of the curriculum like uh if they work in a real estate fund as an analyst right they are quite familiar with all these different topic relating to the real assets right but for those sales people or might be compliance people they did a bit more uh hand Holdings yeah to go through all these foundations and the background so that is why we are here right we try to cater to um candidate students of different levels right so that no matter what your background is we try to uh be flexible yeah see how we can help um well these are the backgrounds I think we can skip it as Joe has made a very excellent presentation on the industries already okay let's go straight to the curriculum uh level one and level two here okay so uh level one and level two um as uh Kaya put it in this way that level one gives us a very uh broad knowledge and background on the so-called building blocks yeah uh building blocks like different types of alternative Investments on real access uh private capitals hedge funds and Structured Products right and that you have the level to um you move on it's like a it's a top-down approach how to put all these different type of Investments together in the portfolio or how do we add the alternative investments into a traditional portfolios to achieve certain goals or objectives uh well if I may I just go back to level one let me just focus on level one um here you can see this the building blocks real access private access hedge fund and structure products right um we we need to have a good understanding of all these different type of alternative Investments at level one yeah for the examinations but then again I would say that most of my students they they say this introductions to Alternative investment actually uh uh is more difficult than the other sections yeah maybe once that you got some ideas of the um alternative Investments and and also some ideas about this investment science then you can move on yeah it is easier for you to pick up all these different um models topics on the um alternative Investments but before before we move on to building blocks right we need to build a Good Foundations but when we say introduction to authors investment actually there are quite a lot of traditional investment topics there right it's like how do we measure the return how do we measure the risk how do we look at this different type of validation models and then we also talk about some kind of a derivatives how derivatives work okay as you know that yeah alternative investment got some popular features like they like to use Leverage they like to use derivatives okay so we need to understand how this leverage and derivatives work in the investments in the portfolio and also in the in this topic introductions yeah we also have to touch on some quantitative uh topics uh like um regressions right yes something that can help us to test the models and see whether the investment strategies work and whether it only work in the past does it work in the Futures how do we make the evaluation of the fund managers and all this will be crammed into this topic introductions to Authority Investments so be prepared yeah we are going to spend some time on this topic before we move on yeah once that you got a good foundation on this yes yeah you're ready to learn this real access private equities hatch functions and Structured Products so real assets right um as Joel mentioned that one particular area of the real assets has very significant growth recently in the past few years which is infrastructure okay we also touched on infrastructures here and apart from infrastructure we'll talk on different type of real assets like real estate Farmland Timberland well if you um have been reading on this the ESG topics you know that Farmland has also been a very popular recently yeah because it is also one of the choice for ESG Investments okay then private equities okay maybe nowadays we talk more on the private Capital right or private assets yeah not just equities right and you you see there are more and more private deaths in the markets so uh we will talk well it's broadly everything about this private assets not just private equities and hatch funds right uh hatch one will touch on different strategies we'll have to understand the profile of different husband strategies not all the headphone strategies are aggressive not all the hedge funds are volatile right we have different kind of headshots we have to understand different strategies yeah with that understanding we can know yeah how to make use of different different hedge funds to achieve different objectives and lastly is about the structure products uh structure products well well it might be a bit uh mathematical quantitative to some people but then again at level one our focus is to the concept how can we make use of different derivatives to achieve certain specific objectives okay so these are the topics that we have in level one yeah uh it's quite a lot yeah if you are going to go through all this in one or two months time yeah you really have to um have the discipline yeah you have to make time for it right okay so of course it is a worldwide recognized qualification so I won't say it is easy but once that you have set your schedule set your discipline and um um yeah we can help you to get through this uh level two yeah as Joe mentioned again there are a lot of new things in the industries and the Technologies disruptions new asset classes then here at level two you will have a chances to touch on these different new topics and thank goodness you don't have to cram everything at one level right at least you got the level one you pass the level one then you got another six months to prepare for level two all right uh okay Joe has gone through all this uh administrative issues here the fees depository uh and here now coming back to the Kaplan yeah how can we help um to well to help you to expedite your study um what different people have different um preferences yeah of learning all right um yeah some people can go through this all by themselves right yeah and some people would like to have a lot of hand Holdings uh I think there's a lot of different variations among the students right but all we can do here is okay we have a very um it's quite demanding curriculums yeah to go through uh with the time constraint yeah and here I can help my students to go through all these different topics curriculums within the time constraint okay yeah and that is what we mean by to expedite your study um of course to do this yeah um we have to be flexible right and of course our core offering here is okay come to Kaplan campus yeah we have this classroom tuitions right face to face I talk to my students to go through all these different topics and also go through the questions right and on top of this of course we have this on demand class and other type of cross materials yeah which can help you to go through the materials more efficiently yeah I have to emphasize again efficiency and expertise your study that is the key to success for the examinations okay for the rest yeah I got a few slides here just I want to highlight to you um some of this quantitative Concepts that we have to go through for the exam right because very often I got questions from my students and asking me whether it is very quantitative yeah whether the curriculum requires the students to study a lot of a quantitative Concepts and do a lot of calculations in the examinations very popular questions right okay so I I I got some slides here to to go through with you and let you be the judge yeah to see how quantitative it is for example here yeah it it is extracted from this um uh as I already mentioned before is the introductions to Alternative investment section okay yeah so within this section there are a lot of different topics all right and now one of those topics is related to the risk measurements to understand yeah what are the risks that we are undertaking right in our investments and there are a lot of different risk measures a lot of different risk measures our uh potential losses in our investments to to measure these Investments losses yeah we call is the risk and one of the very popular measures is called value at risk yeah the VAR and here you can see that these are the requirements we are required to describe different methods of this measurement okay so value at risk is one way to measure the risk okay and we are required to understand this concept to describe the different methods yeah and then we are asked to might be to work it out estimate estimate estimate so that is the calculation part and what do we mean by value at risk so so for for those of us that we we have not studied the statistics before and uh maybe we have left school a long time ago yeah maybe we have no ideas yeah of what it is but just in layman terms and in name and terms right yeah if we expect that we can have a returns that is the mean that is the estimate of our expected returns for our investments it is a point estimate yeah at one point here it could be one percent a day one percent a week okay so but it's bound to be wrong our estimates usually yeah cannot be 100 accurate yeah it could be higher it could be lower right yeah our estimates cannot be 100 accurate you know if you ask me what is the Hang Seng Index next year at this time yeah I can give you a number but I bound to be wrong yeah I better give you a range yeah instead of saying 20 000 I'll give you a range 15 to 25 000 now so they come down to the probability concept now yeah if I give you a point here expect a return I I nearly have zero chance of being correct if I give you a range I have some chances to be correct and these chances we say it is the confidence yeah so it depends on how much confidence that you want when you say this range so in this example okay if I want to have 95 confidence okay so this range here okay that means I have five percent chance being wrong on the other side all right so this is the bar I have five percent have an investment results worse than this Okay so that is more meaningful when I talk to my clients instead of giving my client an estimate okay so that is the VAR so we have to specify the probability yeah of the potential loss within a certain period okay so conceptually that is what is VAR is value at risk and for the calculation part how to estimate it yeah the variation of the actual result is measured by something called standard deviations okay well of course it is one way to measure that there are other methods but let's just focus on this with this standard deviations okay depends on our specified period and also our level of confidence required so yeah this is our confidence yeah this is the specified terms because specify the period okay okay that is the volatilities of our investments uh putting them all together yeah you can either work out yet in the percentage terms or in dollar term a few times the value of your investments in the calculation as well for example here very simple if you've got a Investments 10 million dollars okay and the investment Sparrow goes up and down and that is measured by this standard deviation 0.58 and we have to pay attention particularly in the exam right what data are we given in the questions here this is the daily daily standard deviation if we are asked to work out a 10-day bar you see this is a mismatch so we have to convert this daily standard deviations into a 10-day standard deviation so 0.58 is converted to 10 day by multiplying the square root of 10 okay so just like the equation we just gone through we put all these different inputs together and then at the end we work out this so with a portfolio of 10 million dollars in a 10 days period yeah that's a five percent chance you might lose yeah this 302630 or even more so that is one of the risk measures okay uh is it very quantitative well it depends on your background yeah but some people might say it is very straightforward right yeah and uh other related issues on the VAR as well and let me just uh show you one more thing uh this is about options and this is also another topics in the introductions to Alternative Investments right yeah and our options it is a kind of derivatives right we have to well this is a requirements in the curriculum for the students we have to understand recognize the characteristics yeah of all this different type of options right uh not so much on the calculations not so much on the calculations right so but we have to understand what these options can do for us or might be what they can do for our clients so we have to go through all these uh building blocks of the options like if we long Accord that means we buy a call when we buy a call we have the right to buy okay so when the underlying asset for example if I buy an option on the Hang Seng Index when the hangstang index goes up in this way on the x-axis yeah with a core I make profit okay so that is a positive relationship and if I short a chord that means I I sell your core options right I sell your call option you see that is just a mirror image of the long call options right long call when the hand sign index goes up you make a profit short call when the hand sign index goes up you make a loss okay so depending on your view yeah are you bullish you buy a call are you bearish yeah you sell a call yeah and other options like put give your right to sell yeah you can see this is the payoff diagram is different now right pay off uh when the hand sign index goes down you make a profit that means it gives you the protection on the market collapse so in October if you hold handsome index put option congratulations okay so you see these are different diagrams and then we can put these different diagrams together to make option strategies okay going up going down uh you want to be bullish bearish range trading all this can be done with a combination of the options okay so as long as we remember the core is bullish yeah if you are bullish you buy core if you if you want protection you buy put and then depending on your time Horizon you can strategize different option strategies okay so uh in the class we'll go through these different option strategies boot spread best spread yeah they serve different purposes and it really depends on your view or your client's view yeah which strategies are appropriate okay lastly yeah in the class we might go through some questions like this yeah for example if we want to use this uh derivatives to hatch that is our purpose and who we are yeah we produce Commodities no no we we don't produce Community we hold this commodity produces that in our Investment Portfolio so we have Commodities risk right uh in the format of that yeah if the Commodities produces have any financial trouble the debt value goes down yeah how can we protect us from the value of the debt going down well we can hatch our exposure which one options or filters okay so in the class we'll go through this yeah and to explain yeah how we can make use of the options how we can recognize which option strategies is appropriate for which purposes or objectives okay that's what we do in the class all right okay so I should stop here yeah and uh I pass it back to Christy yeah Christy got more information for you