Ping An's First UCITS Umbrella Fund Obtains SFC Mutual Recognition for Public Offering in Hong Kong
Ping An of China Asset Management (Hong Kong) Co., Ltd. has announced that it has obtained mutual recognition authorized by Securities and Futures Commission of Hong Kong (SFC) for the public offering of its first Undertakings for Collective Investment in Transferable Securities (UCITS) umbrella fund in Hong Kong, announced Ping An Insurance (Group) Company of China, Ltd.
Ping An of China Asset Management Fund (the Fund), together with its four key Sub-Funds, have been authorized for offering to the public in Hong Kong since 16 June 2021. The Fund's investment strategy builds on Ping An's track record of more than 20 years of successful investment in China equity and fixed income markets. It uses Ping An's offshore investment arm PAAMC HK's systematic, quantitative and scientific investment methodologies to offer investors a wide range of investment opportunities in China with flexibility and efficiency, the firm explained in a press release.
Each of the four Sub-Funds managed by PAAMC HK has a unique investment objective and strategy:
China A-Shares AI Multi-Factor Fund
This Sub-Fund employs multi-factor models to construct a well-diversified equity portfolio. It uses advanced artificial intelligence (AI) techniques for stock selection and portfolio optimization. It aims to achieve stable excess returns above the benchmark China Securities Index (CSI) 300 Total Return Index. In addition to applying common factors in the market, Ping An's AI quantitative researchers have developed proprietary factors to enhance its performance and to reduce correlations with other quantitative funds.
China Green Bond Fund
This Sub-Fund mainly invests in China and emerging markets green bonds that are aligned with international standards. This Sub-Fund helps to promote green financing and to advance environmentally friendly investments and social awareness in China and other emerging countries. Bolstered by strong domestic economic recovery and policy support, China green bonds not only help investors capture China's green opportunities, but also mitigate risk due to its low correlations to other major asset classes.
China High-Yield Private Strategy Bond Fund
This Sub-Fund aims to achieve absolute return from investment income and long-term capital appreciation, primarily investing in high-yield corporate bonds and debt securities. It may also invest in debt securities issued by sovereign, government agencies and/or companies having main operations in mainland China.
Emerging Market Income Fund
This Sub-Fund is designed to achieve absolute return from income and long-term capital appreciation by investing at least 60% of its net assets in debt securities issued by sovereign, government agencies and/or companies having main operations in emerging market countries.
Mr. Hoi Tung, Chairman and CEO of Ping An Overseas Holdings, said, “We are delighted to introduce these new funds to the Hong Kong market. Leveraging the strength of Ping An's investment expertise in China, these funds can help Hong Kong investors capitalize on the diverse investment opportunities of China's growth.”
Mr. Chi Kit Chai, Head of Capital Markets and Chief Investment Officer, PAAMC HK, said, “We are very excited to further broaden our fund offering to Hong Kong investors. Ping An is one of the largest financial companies in the world with strong presence in China. We continue to see strong investor demand for Chinese assets given a confluence of factors, such as yield pick-up, green opportunities and diversification benefits.”