< The 2015 All-Asia Research Team
Chuan-Hsiang (Katherine) Hu, Cheng (Charles) Zhou & team
Bank of America Merrill Lynch
First-place appearances: 4
Total appearances: 9
Team debut: 2003
Bank of America Merrill Lynch holds on to second place, despite a change in its team leadership. Former head Karen Chan left the firm at the end of last year, and newcomers Chuan-Hsiang (Katherine) Hu and Cheng (Charles) Zhou now direct coverage. Hu also oversees, with Sheng-Jung (Robert) Cheng, a group that earns its third straight appearance at No. 3 on the Taiwan roster. Before moving to BofA Merrill in 2005, she worked on the banking side of J.P. Morgan. She holds a bachelor’s degree in economics from the National Taiwan University. Co-captain Zhou joined the firm five years after Hu. Previously, he covered equities at Macquarie Capital Securities and spent time at Swiss Reinsurance Co. He earned a master’s degree in finance and investment management from the Hong Kong University of Science and Technology. Their group of six analysts is spread throughout the region, and they are generally upbeat on insurance providers. As a whole, the shares outperformed the broader region by 27.7 percentage points in the 12 months through April, rising 42.3 percent. The squad sees particular growth potential in emerging markets, where insurance penetration is low. Regarding companies in more developed countries, the researchers prefer insurers that maintain strong cash flows and solid cash dividend payouts. Their favorite name continues to be Hong Kong–based multiline insurer AIA Group, thanks in part to impressive execution on the part of the management team. In the opinion of one admirer, the team’s strength is simple: “They understand the industry more than their peers.”