Barings has announced the launch of its first series of Hong Kong domiciled funds, the 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 be launched on 7 May 2015.
According to the firm, the Baring Global Multi Asset Income Fund provides an alternative solution for investors seeking yield in a low-return world. The fund will be led by Sonja Laud, based in London. It will use an active and flexible asset allocation approach which aims to provide diversification benefits and lower volatility compared to regular equity income products.
The Baring European Equity Income Fund aims to generate income and long-term capital growth primarily through investing in European securities.The firm believes that European companies offer a higher dividend yield at attractive prices across developed equity markets. The fund will be managed by London-based Paul Morgan.
The Baring Greater China Equity Fund will be managed by Hong Kong-based Laura Luo, who also manages Barings’ 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 foresees rise in consumption and the middle-class segment will also support sustainable growth in relevant sectors. 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.”
Gerry Ng, chief executive officer, Asia Ex. Japan, Barings, said : “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” he adds.
“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.”
Ng said Barings will continue to develop products in Asia. The firm has been active in China for over 220 years and opened its first office in Hong Kong in 1973.
As at 31 March 2015, Barings has assets under management of $40.5bn (€36bn).