Hong Kong, 28 February 2014 – BNP Paribas Securities Services, a global custodian with over USD8 trillion in assets under custody, today announced it has successfully provided custody services for HFT Investment Management (HK) Limited’s (HFT HK) recent Renminbi Qualified Foreign Institutional Investor (RQFII) fund offerings.
These include the China Money Market Fund under the RQFII scheme and the first ever truly diversified China High Yield Bond Fund, combining bonds traded in the Hong Kong and mainland China markets. The bank provided a full suite of services for the funds encompassing global custody, fund accounting, transfer agency and Hong Kong trustee services.
HFT HK’s Money Market RQFII Fund, approved for launch in February this year, is the first of its kind. The 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, launched in January this year, combines bonds traded in the Hong Kong and China markets and is being distributed to retail and institutional investors.
Jelle Vervoorn, Chief Executive Officer of HFT HK 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. Our group ambition is to pursue an aggressive growth strategy by tapping international investors to drive the demand for our fund business. With the support of BNP Paribas’ 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 BNP Paribas Securities Services Hong Kong, said, “BNP Paribas is very focused on helping clients expand into RQFII products as an integrated part of our global fund distribution solutions 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 continued, “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.”
About BNP Paribas
BNP Paribas (www.bnpparibas.com) has a presence in nearly 80 countries with 190,000 employees, including 145,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across Mediterranean basin countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia-Pacific.
About BNP Paribas Securities Services
BNP Paribas Securities Services (http://securities.bnpparibas.com), a wholly-owned subsidiary of the BNP Paribas Group, is a leading global custodian and securities services provider backed by the strength of a universal bank. It provides integrated solutions to all participants in the investment cycle including the buy-side, sell-side, corporates and issuers. Covering over 100 markets, with our own offices in 34 countries, the BNP Paribas network is one of the most extensive in the industry. We bring together local insight and a global network to enable clients to maximize their market and investment opportunities worldwide. Key figures as of 31 December 2013: USD 8,055 billion assets under custody, USD 1,442 billion assets under administration, 7,067 administered funds and 8,225 employees
About HFT Investment Management
HFT Investment Management Co., Ltd. (HFT) was officially established in April 2003 as one of the first joint venture fund management companies granted approval from China Securities Regulatory Commission (CSRC).
The company has successfully launched 26 mutual funds since August, 2003. As of 31 December 2013 total mutual fund assets managed amounted to nearly RMB 23.5 billion.
HFT was among the first “Qualified Investment Managers for Enterprise Annuity Business” recognised by the Ministry of Labour and Social Security, and became the investment manager of about 76 enterprise annuity funds and pension products, with a total of more than RMB 29.1 billion as of 31 December 2013. HFT was also one of the first fund companies entitled to manage assets for individual investors. Assets in its “Segregated Account Management” business exceeded RMB 2.8 billion as of 31 December 2013. In December 2010, HFT was granted with the approval as the investment manager of National Social Security Fund. In September 2012, China Insurance Regulatory Commission had officially announced that HFT was selected as one of the approved investment manager in the first batch for domestic insurance companies.
From the end of 2004, HFT has acted as the investment advisor for QFIIs (Qualified Foreign Institutional Investor) and other domestic and overseas portfolios. As of 31 December 2013, HFT’s overseas advisory and fund management business neared RMB 20.9 billion. HFT’s fully-owned Hong Kong subsidiary (HFT HK) was granted a RQFII (RMB Qualified Foreign Institutional Investors) license by the CSRC and a RQFII quota of RMB 1.1 billion by SAFE in December 2011. In March 2012, HFT HK had officially launched its first RQFII product, allowing it to raise RMB funds in Hong Kong and invest in Mainland Chinese securities markets. This was followed in May 2013 by the attribution of a QFII License and of additional RQFII quotas in May and July (total RQFII quotas attributed stand at RMB 2.9 billion).
The information contained within this document (‘information’) is believed to be reliable but BNP Paribas Securities Services does not warrant its completeness or accuracy. Opinions and estimates contained herein constitute BNP Paribas Securities Services’ judgment and are subject to change without notice. BNP Paribas Securities Services and its subsidiaries shall not be liable for any errors, omissions or opinions contained within this document. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. For the avoidance of doubt, any information contained within this document will not form an agreement between parties. Additional information is available on request.
BNP Paribas Securities Services is incorporated in France as a Partnership Limited by Shares and is authorised and supervised by the ACPR (Autorité de Contrôle Prudentiel et de Résolution ) and the AMF (Autorité des Marchés Financiers).
BNP Paribas Securities Services, London branch is authorised by the ACPR, the AMF and the Prudential Regulation Authority and is subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority and regulation by the Financial Conduct Authority are available from us on request. BNP Paribas Securities Services, London branch is a member of the London Stock Exchange. BNP Paribas Trust Corporation UK Limited (a wholly owned subsidiary of BNP Paribas Securities Services), incorporated in the UK is authorised and regulated by the Financial Conduct Authority.
In the U.S., BNP Paribas Securities Services is a business line of BNP Paribas which is incorporated in France with limited liability. Services provided under this business line, including the services described in this document, if offered in the U.S., are offered through BNP Paribas, New York Branch, 787 Seventh Avenue, New York, New York 10019 (which is duly authorized and licensed by the State of New York Department of Financial Services) or if a securities product, through BNP Paribas Securities Corp. or BNP Paribas Prime Broker, Inc., each of which is a broker-dealer registered with the Securities and Exchange Commission and a member of SIPC and the Financial Industry Regulatory Authority.
HFT (HK) China High Yield Bond Fund and HFT (HK) China RMB Money Market Fund (collectively as the “Funds”) are sub-funds of HFT (HK) China Investment Series II, which is a unit trust established as an umbrella fund under the laws of Hong Kong. Investment involves risk, you should read the Funds’ offering documents carefully for further details including risk factors.
Some of the bonds held by the Funds may have been assigned an investment grade rating by a local credit rating agency in the PRC. However, the local PRC rating process may lack transparency and the rating standards may be significantly different from that adopted by internationally recognized credit rating agencies. There is little assurance that credit ratings are independent, objective and of adequate quality.
Investment in fixed income instruments is subject to the credit risk of the issuers which may be unable or unwilling to make timely payments of principal and/or interest. In the event of a default or credit rating downgrading of the issuers of the fixed income instruments held by the Funds, the Funds’ value will be adversely affected and investors may suffer a substantial loss as a result.
There is no assurance that PRC rules and regulations will not change or that repatriation restrictions by RQFIIs will not be imposed in the future. Any restrictions on repatriation of the invested capital and net profits may impact the Funds’ ability to meet redemption requests from Unitholders.
For investors of classes not denominated in RMB, assets of the relevant classes will be primarily denominated in RMB and such assets may not be freely convertible. The value of these classes may be adversely affected by changes in exchange rates between the relevant class currency and RMB.
Investing in emerging markets, such as the PRC, involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity and regulatory risks. The concentration of the Funds’ investments in PRC-related companies may result in greater volatility than portfolios that comprise broad-based global investments.
This material is issued by HFT Investment Management (HK) Limited (“HFT HK”) and has not been reviewed by the Securities and Futures Commission (“SFC”).
The Funds have been authorized by the SFC. However, SFC authorization is not a recommendation or endorsement of the Funds nor does it guarantee the commercial merits of the Funds or their performance. It does not mean the Funds are suitable for all investors nor is it an endorsement of their suitability for any particular investor or class of investors.
The information provided does not constitute an offer or solicitation of any transaction in any securities referred to herein. The content of the information does not constitute investment advice to any person. Any recommendation contained herein may not be suitable for all investors. Although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. The information provided and any recommendation contained herein speak only as of the date hereof and are subject to change without notice. HFT Investment Management (HK) Limited has no obligation to update or amend any information contained herein. The information is being furnished to you for informational purposes only and on the condition that it will not form a primary basis for any investment decision. Investors must make their own determination of the appropriateness of an investment in any securities referred to herein based on the legal, tax and accounting considerations applicable to such investors and their own investment strategy. By virtue of the information, neither HFT Investment Management Co., Ltd or HFT Investment Management (HK) Limited, nor any of their employees shall be responsible for any investment decision.