Real Assets: Korea

24 September 2019

South Korea

  • Sponsors >

  • Hong Kong Aircraft Leasing and Aviation Finance Association
    Supporting Organisation
  • Orbis
    Charity Partner

Event Overview

Real Assets: Korea is designed to explore and explain infrastructure and aircraft role as high-yielding assets in the portfolios of Korean investors, whether LPs, GPs or direct/equity investors. Organised and informed by the market-leading news and data sources Airfinance Journal and IJGlobal, this event aims to arm Korean investors with the knowledge and relationships they need to seize opportunity and avoid pitfalls of these alternatives.

 Korean / English simultaneous translation will be provided. 

           

    Contact us

    Sponsorship: Kenneth Yu, kenneth.yu@airfinancejournal.com
    Speaking opportunity: Yvonne Kwok, yvonne.kwok@airfinancejournal.com
    Registrations: Charis Kwok, charis.kwok@airfinancejournal.com
    Logistics: Louisa Kung, louisa.kung@airfinancejournal.com

    Sponsors

    Attracting thousands of participants annually from airlines, leasing companies, financial institutions, investment houses and government bodies, our events provide you with an unparalleled platform from which to promote your organisation’s brand, products and services.

    Find out more about our sponsorship opportunities

    Supporting Organisation

    Hong Kong Aircraft Leasing and Aviation Finance Association

    Hong Kong Aircraft Leasing and Aviation Finance Association

    The Hong Kong Aircraft Leasing and Aviation Finance Association (HKALA) was founded in June 2017 to promote the development of the aircraft leasing and finance industry.
    HKALA's members include key international and domestic lessors, lessees, banks and other financial institutions, investors, law firms, accounting and tax advisory firms and other service providers involved in the aircraft leasing and finance industry.
    The Association seeks to be a united force in the industry that strives to enhance Hong Kong's status as an international aviation and financial center.

    Company website: http://www.hkala.com.hk


    Charity Partner

    Orbis

    Orbis

    Orbis is an international non-profit working to eliminate avoidable blindness. We are a pioneer in the prevention and treatment of blindness for over 30 years and have worked in 92 countries. We operate the world’s only Flying Eye Hospital onboard an MD-10, a state-of-the-art teaching hospital that allows us to travel the world to share knowledge and develop skills with communities that need it most. Orbis provides education that is both high-quality and long-lasting so that these medical professionals can use their new skills to treat their patients even after the Flying Eye Hospital departs. Visit https://sgp.orbis.org/en to learn more.
     


    Preliminary Agenda


     

     

     

    Draft Agenda

    08.00 - 09.00

    Registration and Coffee

    09.00 - 09.05

    Opening Remarks

    09.05 - 09.20

    Keynote Address

    09.20 - 10.20

    Korea & Real Assets

    Korea has an excess of liquidity and a sophisticated finance and investment sector, as well as a long-list of globally significant corporates, anxious to invest and intermediate it efficiently. Koreans have been investing in both infrastructure and aircraft for some time but in recent years this trend has accelerated even as the complexity of those markets and the volume of people chasing deals has increased. This panel will explore the pace and direction of these developments and set the context for the day’s discussions.

    • What assets offer scope for attractive returns over the long and medium medium-term? 
    • How will Korean investors investment horizon and hurdles evolve over the next 3, 5, 10 years?
    • To what extent do infrastructure and aircraft offer diversification for Korean investors?
    • How can Korea’s sovereign and institutional assets most efficiently be channelled into these investments?

    10.20 - 11.00

    Aircraft & Infrastructure

    An interactive presentation of IJGlobal and AFJ data demonstrating the growth of investment & opportunity in these assets.

    11.00 - 12.50

    Investor Roundtable: Capital Allocation, Portfolio Management & Institutional Partners

    A panel of leading Korean institutional investors and funds will explore the advantages, risks and practicalities for investment funds in gaining exposure to infrastructure, aircraft, and other high-yielding assets.

    • Diversification benefits
    • Sources of returns and risks factors in these investment opportunities
    • Retail and institutional appetite and allocation
    • Regulatory issues and constraints

    12.00 - 13.10

    Networking Lunch

     

    Investing in Aircraft & Engines

    Investing in Infrastructure

     

    13:10 - 14.00

    Why, what & when aircraft?

    The health of the aviation industry correlates with GDP and air traffic growth, but things become far more complex at the level of aircraft models, owners and operators. Many factors inform decision on investment in aircraft but fundamentals are key.

    • Understanding the aviation industry fundamentals
    • What do traffic growth forecasts say?
    • What are the trends in asset values?
    • How to factor in market liquidity

    Korean investors & infrastructure

    Private capital investment into infrastructure continues to grow from all sources including funds and institutional investors.

    • How have Koreans invested to date?
    • Which investment vehicles give exposure to these infrastructure assets?
    • Which institutional investors are investing directly and should Koreans follow this path?
    • Where are the opportunities for Korean developers as equity investors or EPC contractors?

    1-to-1 Meetings

    Private one-on-one meetings for participating Korean & international entities.

    14:00 - 14.50

    If metal then what metal?

    Aircraft types vary widely by type and by model. Individual aircraft vary even further. How do you decide?

    • Jets, regional jets & turboprops?
    • A320 or 737? Max or Neo? A220 or MRJ?  
    • How can your aircraft allocation be most effectively deployed to generate target ROI?

    Selecting the right strategy

    Competition for core infrastructure assets in developed markets is increasingly intense. What is the right focus – given varied risk/return and investment horizons – for Korean institutional investors, funds or developers?

    • Specialist vs. generalist, and global vs. regional?
    • Core, core-plus, or non-core assets?
    • Developed, emerging or frontier markets?

    1-to-1 Meetings

    Private one-on-one meetings for participating Korean & international entities.

     

     

    14.50 - 15.10

    Coffee Break

    15.10 - 16.00

    Accessing aircraft yield in the capital markets

    From EETCs to the booming aircraft ABS market, there are plenty of options available to buy aircraft paper. What is the smart move for Korean investors in the current market?

    • Why is ABS proving such a popular structure for issuers?
    • Will liquid or tradeable ABS E-notes increase in 2019 and how appropriate are they for Korean investors?
    • Lessor bonds are increasingly unsecured and generate attractive returns, are these a sweet spot?
    • How close are we to peak issuance; will capital markets supply slow in the years to come?

    Investing in the energy transition

    The pace of technological change, government environmental targets, and increasing corporate ESG concerns are changing both the markets, projects and assets available to investors.

    • Which assets are now off-limits, if any?
    • Which new asset types, or markets have emerged and how investible are they?
    • Which renewable energy markets offer the most attractive opportunities for Korean investors?
    • How essential are contracted revenues to Korean investors in renewable assets?
    • How are the risks of corporate PPAs best evaluated?

    1-to-1 Meetings

    Private one-on-one meetings for participating Korean & international entities.

    16.00 - 16.50

    Lessors, the opportunity at the market’s core

    Some 40% of the world’s commercial aircraft fleet is operated on a lease. Publicly-listed lessors had a challenging 2018 on the stock markets, and are seen by many as undervalued.

    • What differentiates one leasing company from another?
    • Managers vs. assets owners?
    • What markets and aircraft types to they specialize in?
    • How do they finance their fleets?

    Debt strategies

    Investment in infrastructure debt and debt funds have proliferated in recent years and offer an alternative investment strategy.

    • What are the different types of debt products and what the associated risks?
    • What types of cash yields are available?
    • When would direct-lending be an option for Korean investors?
    • When and where is for debt investment preferable to equity?
    • Can CLOs offer comfort with infra debt?

    1-to-1 Meetings

    Private one-on-one meetings for participating Korean & international entities.

    16.50 - 17.30

    Managing the risk/return relationship

    Aviation is famously cyclical -- the current period of consistent growth possibly best characterized as a “super cycle” -- and good times will not last forever.

    • How can investors best formulate exit strategies to ensure investments are protected?
    • What are the advantages of investing in mid- to end-of-life assets?
    • What are the key repossession and remarketing challenges and how are they best managed?

    Exiting efficently

    Infrastructure and infrastructure funds offer an evolving profile of risk/reward over frequently extended lifetimes. The ability to exit appropriately is key to any investment strategy.

    • Which are more attractive open or closed end funds?
    • Which assets are most liquid and when?
    • How can Korean investors minimize the risk of holding stranded or otherwise illiquid assets?

    1-to-1 Meetings

    Private one-on-one meetings for participating Korean & international entities.

    17.30 - 19.00

    Cocktail Reception

    Please note that the programme is subject to change, and will be updated continuously up to the conference. 

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