Q&A with Western Asset's Michael Dale on his new role

The collegiate culture was the first thing I noticed when arriving at Western Asset. It was a real breath of fresh air. I think that this approach differentiates us from our peers and importantly resonates with our client base in partnership.

In Australia, I have really enjoyed working within in the Client Service and Marketing team who have gone from strength to strength. Together, we formulated a proactive approach to working closely with investment institutions by identifying their needs, leveraging our firm's expertise and tailoring investment solutions accordingly. Our growth in the insurance and superannuation channels is a proof statement of our success and gives us poise for the future.

Personally, having grown up in Sydney, I thoroughly enjoyed my time living in Melbourne (although don't tell the Melbourne team that...)

A couple come to mind. First, my new role extends from a Client Service remit to Head of the Singapore office, which currently has 23 staff working across various business channels (Legal & Compliance, HR, Investment Management, Operations, Finance). Similar to our Melbourne office, all staff based in Singapore have an incredible devotion to their work, however, are a diverse set of personalities not necessarily similar to us client service and sales folk. I look forward to the challenge of integrating the teams for mutual success of Western Asset and our clients.

Second, the cultural differences across the large and diverse Asia region will definitely be a challenge, relative to my experience in Australia and New Zealand where differences are typically nuanced.

I relish these challenges as opportunities to add value in my new role.

I have not taken the need to prepare for granted, the Asia-Pacific market is tremendously important to Western Asset, both via future growth opportunities and where we have been proudly working with investors in Asia Pacific for decades with many established relationships. Fortunately, the transition has taken 6 months and included several trips to the region, which has prepared me well for the opportunities but also challenges ahead.

In my short time up here in Asia, I have noticed that sophisticated investors/asset owners are focused on many of the same issues as investors in Australia and New Zealand. For example, changing regulatory environment, fee sensitivity, risk adjusted outperformance and minimal tolerance for performance drawdown, retirement income, peer relativity and best practice, new investment opportunities and ESG investing to name a few.

The difference I suspect for me in Asia will be on how I approach these issues proactively, leveraging the firms expertise, amongst regions with different cultures, languages etc. Fortunately, I am supported by a well-established and experienced client service and investment team in Asia, armed with global market and industry insight and proven track record scaling our businesses skill set and adding value to investors.

In Melbourne, we engage our clients at the outset of every calendar year, to summarise what are currently considered the most relevant business and investment issues facing fixed income asset owners. Such issues allow us to better understand our clients and forms the basis of our client service efforts. See some of the general responses of this year's survey:

1. Alpha Generation and Return Expectations in a Low Interest Rate Environment

The challenge of generating satisfactory return from various asset classes given the persistent low interest rate environment - Do investors adjust return expectations lower or look for alternative investment risks to maintain returns?

2. The Current Credit and Business Cycle

Where are we compared to previous cycles? Can spreads tighten further? What is the future likely to hold and how should portfolios be positioned for different scenarios?

3. Demand for Alternative and Non-traditional FI Asset Classes

Increased enquiry and demand both as an alpha driver and diversifier of returns.

In addition to the above, a longer term thematic of increasing demand for ESG and sustainable investment offerings was also identified as a significant opportunity for partnership in 2019.

Depends on which market you're speaking about (insurance, pension, HNW), however ultimately, the answer is more often than not YES.

As demographics change across Asia, reflecting a greater proportion of the population facing retirement the need for reliable streams of income and protection of capital will be paramount. As cash and deposit rates are likely to stay low for an extended period the market opportunity in fixed income is a giant playing field for investors who have the wherewithal to meet these objectives for retirees.

In my free time, I enjoy an active lifestyle, playing a few rounds of golf and am a TV/Movie buff. On longer breaks, I enjoy travelling - I look forward to exploring Asia.

Tough question, although, I would have to say my parents, who worked hard raising 4 boys (including twins) to provide us with every opportunity possible to reach our potential.

John Wilson, Former-Head of PIMCO Australia, Neville Ide, Former-Treasurer of Suncorp-Metway, Peter Dorrian, Former-Head of Global Wealth Management, PIMCO Australia.

I don't, although when I hear the instruments used in soundtracks and movies sometimes I wish that I still did. My favourite movie soundtrack I could play on the clarinet was the Pink Panther by Henry Mancini.

Read Michael Dale's previous Q&A with Industry Moves here!