HFT is poised to roll out first RQFII money market fund

03 March 2014   Category: News, Asia, China, Global, Hong Kong, Malaysia, Singapore, Thailand   By Hui Ching-hoo

HFT Investment Management (HK) (HFTHK), a joint venture between BNP Paribas Investment Partners and Haitong Securities, is set to launch the first RQFII money market fund in Hong Kong after receiving approval from the Securities & Futures Commission (SFC) to go ahead with it.

Jelle Vervoorn, chief executive officer of HFTHK notes the fund will be the first of its kind to primarily invest in money market instruments issued in China, enabling investors’ outwith China to enjoy Mainland yield levels for these products.

The RQFII money market fund, together with HFTHK’s China high yield bond fund, which was launched in January 2014, is a vital component in the company’s strategy to build a full RMB product range across asset classes that cater to the requirements of global investors, Mr. Vervoorn adds.

Bruno Campenon, head of BNP Paribas Securities Services Hong Kong, says BNP Paribas is very focussed on helping clients expand into RQFII products as an integrated part of its global fund distribution solution for asset managers. “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 strategy, meeting the unique operational and regulatory requirements of China’s fund market,” he explains.

Pointing to the expansion of he RQFII programme, Mr. Campenon says a possible fund structure for RQFII would be via a Hong Kong unit trust fund. The other possible structures are Luxembourg Specialized Investment Funds (SIF), Irish Qualifying Investor Funds (QIF), and Cayman Funds. European regulators and the China Securities Regulatory Commission (CSRC) are currently in discussions in regard to allowing RQFIIs to use UCITs vehicles.

Lawrence Au, head of Asia Pacific with BNP Paribas Securities Services, says he is aware of the fact that some European investors are looking to launch RQFII products in Singapore, from where they can benefit from the ASEAN Collective Investment Scheme (CIS) framework to distribute their products in Thailand and Malaysia. He expects the first RQFII fund to come on line in Singapore in the next few months.