Baring Asset Management (Barings) has launched its first series of Hong Kong domiciled funds, namely Baring Global Multi Asset Income Fund, Baring European Equity Income Fund and Baring Greater China Equity Fund.
The three funds were granted approval from the SFC on 30 March 2015 and will launch on 7 May 2015.
Gerry Ng, Chief Executive Officer, Asia Ex. Japan, Barings, says, “The launch of our first three locally domiciled funds is an important step forward for Barings in the expansion of our already extensive product range in Hong Kong. Barings has a reputation for responding to investor needs and the funds are a continuation of our drive to provide high quality and accessible investment opportunities for our clients in Asia.
“To meet the increasing demand for RMB-denominated investment products, Barings has also introduced the RMB hedged class for all three funds. This will provide investors with the additional option of achieving capital growth through the gradual internationalisation of the RMB as well as enable them to potentially diversify risks in their investments due to exchange rate fluctuations. This would also offer investors an avenue to seize opportunities arising from the much-anticipated mutual recognition platform between Hong Kong and mainland China.”
Baring Global Multi Asset Income Fund accesses a range of asset classes and geographies to capture income opportunities globally. It provides an alternative solution for investors seeking yield in a low-return world. The fund will use an active and flexible asset allocation approach which will provide diversification benefits and lower volatility compared to regular equity income products. The fund will be led by London-based Sonja Laud, an experienced investment manager with a track record of income generation.
Baring European Equity Income Fund seeks to generate income and long-term capital growth primarily through investing in European securities. Barings believes that European companies offer a higher dividend yield at attractive prices across the developed equity markets. The fund will be managed by London-based Paul Morgan who is also the manager of the mother fund portfolio of this fund, a private placement Japanese domiciled Toshin Fund, which has been rated five stars by Morningstar1 and received the Lipper Fund Award in Japan in 2014 and 20152.
Baring Greater China Equity Fund will be managed by Hong Kong-based fund manager, Laura Luo, who also manages our existing flagship Hong Kong China Fund. This fund aims to achieve long-term capital growth in the value of assets by investing in Hong Kong, China and Taiwan. While China’s economy is aided by supportive policies and stronger exports, Barings believes that the rise in consumption and the middle-class segment will also support sustainable growth in relevant sectors. The launch of Shanghai-Hong Kong Stock Connect and the potential of Shenzhen-Hong Kong Stock Connect will also gradually open up China’s equity markets to the world and eventually help the country to grow in the long-run. Barings also believes that attractive valuations in equity markets, as well as the volatility and weakness in the short-term, provide good entry points for investors.
Ng says: “The launch of these funds is a testament to Barings’ commitment to expanding our fund offering in the region. We will continue to develop products that will extend our franchise in Asia, our coverage in the region and we will also continue to create increasingly bespoke solutions in response to investor needs – including additional locally domiciled funds.”