Asian asset manager Harvest Global Investments (Harvest) has become the first firm to qualify funds for the Switzerland-Hong Kong Mutual Recognition of Funds scheme (the Swiss-HK MRF scheme) that was established in December 2016.
To be eligible for the Swiss-HK MRF scheme, funds of Asian managers shall be domiciled, managed, and have received the regulator’s green light for retail distribution in the home jurisdiction.
Another requirement is that managers seeking approval for the Swiss-HK MRF scheme must not have had regulatory troubles in the past three years.
The MRF scheme hence enables Swiss investors to invest in Harvest’s China Equity and Asia Frontier strategies.
These strategies have exposure to all Chinese investment channels, including Hong Kong listed securities and to frontier Asian markets including Bangladesh, Sri Lanka, and Vietnam.
The China Equity strategy looks at benefiting from long-term upward trends in Chinese markets including alternative energy, software and internet, consumption upgrade, and innovative technology.
The Asia Frontier strategy identifies opportunities linked to significant structural themes, such as China’s “One Belt, One Road” initiative and the growth of consumption and tourism-related industries.
Ashley Dale, chief business development officer and chief marketing officer, said: “At Harvest, we’re investing in China and Asia as the region grows into an innovation hub. As Swiss investors are looking to diversify their portfolios, the Switzerland-Hong Kong Mutual Recognition of Funds scheme will now provide them with access to our local investment expertise.
“Our investment team combines an international pedigree with granular local insights when looking for alpha opportunities. The on-the-ground team understands how policy decisions impact local markets and the complexities of risk in on-shore and off-shore Chinese markets as well as frontier Asian markets. Our investment team has the knowledge and expertise to identify companies primed for quantum growth.”
As of 31 March, Harvest Global Investments had $114.25bn (€102.42bn) of assets under management.