HSBC elected as custodian for first open-ended fund company in HK

Pacific Hawk provides corporate structure comparable to places like the UK, Luxembourg and Cayman Islands

HSBC Securities Services has been appointed the custodian and fund administrator for Pacific Hawk Global OFC, the first open-ended fund company (OFC) launched in Hong Kong. Pacific Hawk (HK) Ltd. officially offered their open-ended private fund on October 14 after getting the approval from Hong Kong’s Securities and Futures Commission (SFC) in August.

The OFC strikes a balance for investors and fund managers by providing investor protection and the familiarity of a company limited by shares as well as the simplicity of fund-raising previously only available for funds structured as unit trusts in Hong Kong.

“The arrival of the OFC provides Hong Kong with a corporate structure comparable to internationally recognisable jurisdictions such as the UK, Luxembourg, Cayman Islands, and BVI,” says Brian Godins, HSBC Securities Services Asia-Pacific regional head.

With the upcoming Corporate Collective Investment Vehicles scheme launch in Australia and the Variable Capital Company in Singapore, “we are seeing competition between fund jurisdictions in the Asia-Pacific region heating up. We expect that these new structures would boost Hong Kong's position as an international asset management hub,” he adds.

The assets of OFCs must be segregated from those of the investment manager and entrusted to a separate, independent custodian for safekeeping. An OFC must appoint a custodian who should meet the same eligibility requirements which are applicable to SFC authorized funds under the Unit Trust Code.

“OFCs fill a big gap in the range of investment options in Hong Kong and will create new opportunities for fund managers, independent directors and other legal and professional services. Having investor protection under Hong Kong law and direct access to the custodian/administrator and advisors in the same time zone will bring greater transparency and confidence for the investors. There are also clear advantages to having the professionals in the same location including more cost-effective funds,” said Ann Cooley, Chief Executive Officer of Pacific Hawk.

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Date

7 Nov 2019

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