HFT Investment Management has given BNP Paribas Securities Services custody of its recently launched renminbi (RMB) qualified foreign institutional investor (RQFII) fund offerings.
These include the China Money Market Fund under the RQFII scheme and the China High Yield Bond Fund, combining bonds traded in the Hong Kong and mainland China markets.
BNP Paribas provided a full suite of services for the funds encompassing global custody, fund accounting, transfer agency and Hong Kong trustee services.
The funds were launched in January and February. The Money Market RQFII Fund will primarily invest in money market instruments issued in China enabling investors outside China to enjoy mainland Chinese yield levels for these products.
The China High Yield Bond fund combines bonds traded in the Hong Kong and China markets and is being distributed to retail and institutional investors.
Jelle Vervoorn, CEO of HFT Hong Kong, said: "These funds are key milestones in our strategy to rapidly build a full RMB product range across asset classes that caters to the requirements of global investors.”
“With the support of BNP Paribas’s global reach and local servicing, we can focus on the key drivers of our business by building a solid track record in RQFII funds.”
Commenting on the deal, Bruno Campenon, head of Hong Kong at BNP Paribas Securities Services, said: “With our global expertise across multiple markets and international fund centres worldwide, we now provide our fund manager clients with another new channel in the RQFII space to support their business strategies, meeting the unique operational and regulatory requirements of China’s fund market."
He added: “We are seeing a strong growing demand for our solutions across Asia and Europe. Our Hong Kong trustee service was set up in 2012 to meet this demand and we will continue to invest in developing capabilities to address the unique requirements for facilitating fund flows between Hong Kong, China, the rest of Asia and the world."
"We were very pleased to see successful fund launches by HFT HK, and look forward to supporting them to stay ahead of the industry in the process of RMB internationalisation.”
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