Citi has been mandated by Income Partners Asset Management (Hong Kong) to act as fund services provider.
As part of this mandate, Citi will provide transfer agency services for Income Partners’ first northbound fund under the Hong Kong-China Mutual Recognition of Funds (MRF) scheme.
The Income Partners Managed Volatility High Yield Bond Fund, an existing Securities and Futures Commission authorised fund, is being made available to eligible mainland investors following approval from the China Securities Regulatory Commission.
The fund comprises five additional share classes with exposure in USD and RMB on a hedged and unhedged basis.
In addition to acting as transfer agent for the Income Partners Managed Volatility High Yield Bond Fund, Citi also provides trustee, custody, fund administration and share class hedging services to all Income Partners’ Hong Kong public authorised funds.
According to Julie Kerr, Citi’s Asia Pacigic head of custody and fund services, Citi is one of the very few service providers that has the necessary infrastructure and connectivity to support the unique features of MRF funds such as relevant information exchange and subscription and redemption orders flow from Mainland China to Hong Kong.
Kerr says: “We are excited to be able to support one of Asia’s leading fixed income specialists here in Hong Kong as they operate their first northbound mutual fund.”
Suen Son Poon, chief operating officer at Income Partners, highlights: “The launch of our first ever northbound fund using the MRF scheme is an incredibly important achievement for us as a Hong Kong based asset manager.”
Poon adds: “We decided to partner with an institution that has an established track record in supporting funds using the MRF scheme.”
Click here to read more about transfer agency services and how regulatory change in the industry has impacted transfer agents.
