www.ubs.com/investmentresearch This report has been prepared by UBS AG, Singapore Branch. ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 45. UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Global Research 18 September 2019 ASEAN Equity Strategy OneASEAN conference: what did we learn? (part 1) Feedback from panels and corporate meetings in Bangkok (part 1) We summarise all of the insight gained in the first part of our OneASEAN conference held in Bangkok on Monday and Tuesday of this week. We hosted 45 corporates from across the ASEAN region, >160 regional and global investors, and held 7 expert panels. The outlook from participants was broadly positive, whilst remaining wary of global challenges' impact in the region. Thematic discussions covered topics as diverse as ESG, China's ascendancy in ASEAN, and "Quantamental" investing. And the conference is not yet over: 7 thematic tours across the region are ongoing; we will provide further feedback on these in due course. Look out for part 2. A positive structural outlook for ASEAN in challenged times The overall tone of the conference was positive, despite global challenges. Dr Parag Khanna, the keynote speaker, argued that demographics and outsourced manufacturing will support ASEAN in the coming 4th wave of Asian growth, a trend that is lost in the "noise" of the zero sum trade war. Our twin ESG panels suggested that large volumes of investor capital is forcing corporates to focus on sustainability issues, and that this is improving their returns - perhaps giving hope for the environmental and social challenges facing the Mekong river region as highlighted in Maureen Harris from International Rivers in her fascinating presentation. Technology brings opportunities for collaboration Other panels examined the role of digital transformation on the finance industry, concluding that both traditional incumbents and fintech "challengers" can benefit by working in partnership. Meanwhile our "Quantamental" panel discussed the wider offering of Quant research in current markets and showed that backward looking and "top down" Quant models can enhance returns even further when combined with "bottom up" insights from forward looking analysts. Seven thematic tours across the region 7 tours are currently ongoing. These include wellness in Thailand, Vietnam property, Indonesia blue chips, Thailand retail, Vietnam consumer and Malaysia macro. We will provide on-the ground feedback from these tours in due course. Equity Strategy Asia Ian Douglas-Pennant, CFA Strategist ian.douglas-pennant@ubs.com +65-6495 5022 Nicole Goh Analyst...
