Harvest Global Investments Launches the Harvest China Bonds Fund
HONG KONG, March 6, 2018
Harvest Global Investments (“HGI”), the Asian and Chinese markets specialist asset manager, announced today the launch of the Harvest China Bonds Fund managed by Thomas Kwan, Harvest Global Investments’ CIO. The fund will be one of the first to invest in Bond Connect.
The Harvest China Bonds Fund joins a portfolio of UCITS funds that have launched since 2014 and been managed by HGI as the firm has embarked on an international expansion and attracted new investors. The funds include the Harvest China Evolution Equity Fund, Harvest Asia Stock Fund, and Harvest China A Share Equity Fund.
UCITS funds are increasingly popular with Asian investors because the UCITS “label” provides assurance that certain regulatory and investor protection requirements have been met. In addition, some of the traditionally biggest UCITS markets are looking for local product. The UCITS accreditation allows HGI to distribute such funds to investors globally.
HSBC Securities Services Luxembourg (HSS) is the custodian bank and fund administrator of the Harvest China Bonds Fund.
Ashley Dale, Chief Business Development Officer and Chief Marketing Officer for Harvest Global Investments said, “We are launching the China Bonds Fund to enhance our product offering for international investors. This fund is one of the first to give investors access to the new bond connect and is at the forefront of how the market is developing. We believe our expertise in managing assets in China, with an established and sophisticated team of over 200 investment professionals on-the-ground locally, complimented by our investment pedigree in Hong Kong, allows us to provide our clients with the most insightful, well researched and actively managed products available. Our UCITS product line-up is developing well, with funds that really reflect the huge opportunities in China and throughout Asia.”
Nicholas Maton, Head of Securities Services, HSBC in Luxembourg, commented: “We have seen the China Interbank Bond Market developed rapidly and China is determined to open up the capital markets for foreign investors and asset managers. Bond Connect is one of the key milestones among many China access programs including QFII, RQFII and Stock Connect. We are very pleased to support our clients in trading via the Bond Connect channel and being the pioneer to drive the development of the Luxembourg fund industry.”
The Harvest China Bonds Fund will benefit from China’s strong growth by investing in a portfolio of bonds issued or guaranteed by Chinese central and local governments, top tier financial institutions and corporations domiciled in China, including Hong Kong. “The focus of the Bond Fund is investment grade credit with a duration of 2-4 years,” Mr. Kwan said. “We will be targeting up to 70% exposure to onshore Chinese bonds, where we believe with our on-the-ground expertise and huge experience, we will target to provide positive stable returns.”
The Harvest China Evolution Equity Fund, managed by Yannan Chenye, Head of China Equity Research, launched in March 2017, includes some of the best companies in China and capitalizes on structural changes in China’s dynamic economy. The fund invests in Chinese equity or equity-related securities, and provides investors with access to all Chinese investment channels, including Hong Kong listed securities, Chinese companies listed as ADRs and domestic A-share stocks via the stock connect system linking mainland China markets with the Hong Kong Stock Exchange. “There are promising industries and opportunities for investors; it’s very exciting,” Ms. Chenye said. “At the same time, we have an on-the-ground, bottom up research capability that nobody else can compete with.”
The Harvest Asia Stock Fund, launched in February 2015 and managed by June Chua, Head of Asian Equities, provides diversified equity exposure to Asia ex Japan, including exposure to “frontier” economies such as Vietnam, Bangladesh, Sri Lanka, Kazakhstan and Mongolia. The dollar-denominated fund seeks to generate a long-term return higher than the benchmark. “We’ve been doing quite well, and consistently well,” said Ms. Chua of the fund’s performance.