Northern Trust is expanding its fund administration and custody capabilities to support locally domiciled Hong Kong funds, including exchange-traded funds, as well as other regional investment funds.
The bank stated that its aim of expanding was to help meet demand from asset managers to launch local investment products in the greater China area.
For the newly launched service, Northern Trust will provide global sub-custody and fund administration services, including fund accounting and shareholder services, to asset managers looking to broaden their product and distribution base in the Asian region.
“We recognize the significant demand from investors, asset managers and regulators for local products in the Hong Kong and greater China markets,” said Camie West, head of global fund services in Asia for Northern Trust.
“This service offering provides our asset manager clients with improved access to these markets through locally domiciled vehicles, coupled with Northern Trust’s fund administration expertise and proven global infrastructure.”
The Hong Kong funds will complement the global array of fund structures supported by Northern Trust, including UCITS funds in Europe, and mutual funds and collective investment trusts in the United States. For ETFs, Northern Trust brings to the Asia-Pacific region what it calls a “unique” service infrastructure that exists in Europe, which it believes will enhance product efficiencies for clients in Asia.
“Many successful international and local Asian managers are extending their product reach into all regions, and in particular there has been an increased focus on Asia for the distribution of funds,” said Paul Fahey, head of product and strategy for Global Fund Services at Northern Trust.
“We believe our expanded services can help both international and local Asian managers increase their assets under management. We are increasingly moving up the value chain, helping managers implement and execute effective cross-border distribution strategies to help them build their assets and scale quickly.”
