BNP Paribas wins custody mandate for Hong Kong’s first retail OFC
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BNP Paribas wins custody mandate for Hong Kong’s first retail OFC 12 June 2020Hong Kong Reporter: Maddie Saghir
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BNP Paribas Securities Services has been selected to provide custody services to BEA Union Investment, the first fund manager to use Hong Kong’s Open-ended Fund Company (OFC) regime for actively-managed retail funds.
As part of this mandate, BNP Paribas Securities Services will provide BEA Union Investment with a range of custody services such as fiduciary duties, fund administration, as well as transfer agency services.
The OFC regime was introduced by the Securities and Futures Commission in July 2018 and enables Hong Kong domiciled investment funds to be established in the form of a company which offers more flexibility than unit trust structures, according to BNP Paribas.
Eleanor Wan, CEO of BEA Union Investment Management, said: “We are proud to be among the first to launch a fund through the new domestic OFC structure. We are glad to have BNP Paribas Securities Services as our partner in this important milestone, boosting Hong Kong’s status as an international asset management centre. The BU APAC Bond Fund, our pilot fund, will offer investors our flagship investment competence in Asian fixed income.”
Julien Kasparian, head of Hong Kong at BNP Paribas Securities Services, commented: “We are delighted to have been appointed by BEA Union Investment as its custodian and fund administrator to support its first OFC in the Hong Kong market.”
“The introduction of this new regime enhances local market infrastructure, positioning Hong Kong as one of the preferred fund domiciles among all other internationally recognisable jurisdictions. This mandate demonstrates our bank’s commitment, expertise and capability to support Asia Pacific’s new corporate fund structures and to be a one-stop-shop for asset managers who are looking to grow in the region.”
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