By anyone’s standards, John Williamson FCSI has come a long way. The son of parents who ran a newsagent and bakery business in Edinburgh, Williamson has spent the past 20 years living and working in Hong Kong, succeeding in top roles at some of the world’s largest financial institutions.

“I worked in my parents’ business from age nine until I was 21,” he says, keen to add that he was given time off for school and university. “That was my introduction to business and dealing with people – any work ethic I may have was inherited from my parents.”

This ethic includes being level-headed, hard-working and preserving high levels of integrity – qualities that helped him at the beginning of his career as an accountant and, more recently, as Chief Financial Officer and Senior Managing Director at Search Investment Group, the private investment company of Robert W Miller and his family. Miller is a founding shareholder in Duty Free Shoppers, the world’s leading luxury retailer to the travelling public.

Williamson implements the Group’s business strategy and vision, maintains corporate culture and manages the day-to-day operations of this family-owned institution. He is also CEO of SAIL Advisors, a subsidiary of Search and one of Asia’s top fund-of-hedge-fund managers.

“I deal with a range of investment and finance-related issues, and I’m also involved with one of the world’s most successful retail operations, so I feel very privileged,” he says. Yet his position at Search offers more than the chance to leverage his three decades of experience in the financial services industry. “The opportunity to work directly with the chairman was the key attraction of the job. As expected, I have learned much from him not only about many different aspects of business, but also about life in general.”

At 80, Williamson’s boss Miller is still fully involved in his Group’s activities, and continues to be a source of inspiration for his younger colleague. This is no more true than throughout the recent financial crisis, which struck a year after Williamson joined Search.

“In 2008, when the markets were falling, our Chairman was extremely concerned but, unlike many people, he remained remarkably calm. He said, ‘John, the sky’s not going to fall in.’ He had a pragmatic view of what was happening in the markets and didn’t succumb to the media view of doom and gloom. In the end, the financial decisions we made turned out to be sound.”

 “Crises always start when people least expect them,” says Williamson. “So the first rule of business should be ‘Don’t panic’. Unfortunately, that’s what most people do.”

Other investors did panic and Williamson points out that many sold a lot of their holdings at substantial discounts. He adds: “When the upturn came in 2009, we were able to capitalise on that, where others left it too late before getting back into the market.”

Plain sailing

The ability to weather the storm is a testament to the broader investment philosophy of SAIL and its parent.

“Our approach is characterised by a strong emphasis on research and selection of alpha-generating hedge funds,” says Williamson.

“We identify hedge funds early in their lifecycle and it is critical for us to understand the risk/return sources of each hedge fund. We are also very focused on portfolio transparency and liquidity.”

At SAIL, the portfolio managers strive to find the strongest alpha generation among medium-sized managers. Crucially, the funds they invest in must be at an optimum size of assets under management relative to their strategy.

“The ability to control and limit directional risks is a key consideration when we construct our portfolios in terms of being able to reduce volatility when necessary,” claims Williamson. “Our investment philosophy has worked well over the years and our funds have consistently generated attractive returns for investors.”

Typical of those who are both accomplished and modest, Williamson is full of praise for his colleagues, who manage more than $2bn of assets: “Our strong work ethic, client-focused approach and desire to act with integrity at all times are the foundation of our business.”

 He is also very complimentary about the colleagues he met some 30 years ago at Edinburgh stockbrokers Wood MacKenzie & Co. Ltd. Having joined the firm in 1983, Williamson soon thrived in a workplace that placed achievements and skill over family heritage and class. “In terms of watershed moments, joining Wood MacKenzie was one of the most significant in my career. It was run as a real meritocracy: as long as you were adding value, it didn’t matter what your background was.” More than three decades after joining the firm, Williamson is proud of the strong relationship he still enjoys with one of his superiors and mentors at the firm – and former CISI Chairman – Scott Dobbie FCSI(Hon).

“I was very fortunate to work for Scott Dobbie for many years,” Williamson says. “He remains one of the most highly respected figures in the City today. Scott always acts with the highest level of integrity, is decisive, stands firm, speaks frankly and leads by example. He always had authority, but it was his behaviour that gave him my, and so many others’, respect.”

From Wood MacKenzie, Williamson’s career progressed, and in 1994 he moved to Hong Kong, becoming Chief Operating Officer of NatWest Securities Asia Holdings. Surviving the rigours of the East Asian financial crisis that befell the region in 1997, he moved the following year to become Managing Director and Head of Infrastructure of Morgan Stanley Asia.

“When I moved out here with my family, we only really intended to stay for three years,” he says. “It’s such a great and fascinating place to live and work. We’ve had a number of financial and non-financial crises – including bird flu and SARS – not to mention the handover of Hong Kong back to mainland China. If nothing else, I’ve enjoyed the challenge.”

Healthy interests

Where hard work forms part of Williamson’s professional motto, it features heavily in his personal life. Having trained in judo to black-belt level in his younger days, he still appreciates the virtues of exercise. “As you approach 50, things start to go south, so exercise is vitally important in life. Luckily I was always interested in sports.” Nowadays that interest spans skiing, yoga and kick-boxing – “a great tension reliever”.

He says: “Being at least reasonably fit helps you stay alert. It helps you sleep better, so you can hopefully make better decisions. No matter what age you are; staying fit is important.”

So much for the physical. To relax mentally, Williamson is a keen reader of biographies and points to Sir Winston Churchill as a source of revelation. “Despite some of the handicaps he suffered – his depression and speech impediment – Churchill had a remarkable life and career, and not just in politics.” The image of a seemingly indefatigable Churchill toiling relentlessly during the darkest hours of World War II probably strikes a chord with many overworked financial services professionals, and you get the sense this isn’t lost on Williamson.

“There are times for all of us when your workload becomes challenging,” he confesses. “Learning how to deal with stress and to prioritise is important, and to be honest you learn from experience. If there is a benefit of getting older, then gaining that experience is certainly one of them.”

CV snapshot

2008 – Appointed as an independent non-executive director of Hong Kong Exchanges and Clearing Limited

2007 – Becomes Chief Financial Officer at Search Investment Group, rising to Senior Managing Director

1998 – Joins Morgan Stanley Asia as Managing Director and Head of Infrastructure

1994 – Moves to Hong Kong and becomes Chief Operating Officer of NatWest Securities Asia Holdings

1992 – Assumes responsibility for NatWest’s Global Custody business

1983 – Joins stockbrokers Wood MacKenzie & Co., which was sold to County NatWest in 1987

1983 – Qualifies as a Chartered Accountant with Edward Moore & Sons

1980 – Graduates from Heriot-Watt University with a degree in accounting and computer science

On exchange

In 2008, Williamson was appointed to the board of Hong Kong Exchanges and Clearing Limited (HKEx) as an independent non-executive director. Aside from the kudos, this position helps him stay connected with the securities industry and its key stakeholders, both locally and internationally. Williamson was involved in HKEx’s successful $2.2bn acquisition in 2012 of the London Metal Exchange (LME) – a deal that clearly enthuses him.

Williamson says: “While LME’s exchange had been global for a long time, it had not realised all of its growth opportunities in Asia, particularly in China – a market HKEx knows well.”

Williamson is confident that HKEx can continue to be the entrepôt between the West and China. “There are many opportunities for Hong Kong’s financial markets as China’s economy evolves,” he says. “Since the mid-1990s, their growth has been driven by China’s economic growth and its increasing use of Hong Kong’s equity market. Those trends are unlikely to change soon. Hong Kong remains very attractive for Chinese companies that want to raise funds in an international IPO and have a listing in a truly global market.”

Williamson believes that, beyond capital formation, China’s needs are likely to shift increasingly to investment diversification and risk management across all asset classes, reflecting its transformation from an importer of capital to an exporter of capital. “As HKEx builds a presence in multiple asset classes, it will be well positioned to offer products and services to support China,” he says. “HKEx expects to benefit from the internationalisation of China’s currency and Hong Kong’s position as the leading offshore renminbi centre.”