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Hang Seng-Ping An Asia income offering launched

The fund aims to pay monthly distributions with an annualised dividend yield of around 4%.

Hang Seng Investment Management and Ping An of China Asset Management have co-launched a mixed-asset fund that mainly invests in Asia-Pacific (ex-Japan) markets.

The Hang Seng Ping An Asian Income Fund aims to provide investors to capture income and growth opportunities in the region, according to a joint statement from the two firms. It intends to pay monthly distributions with an annualised dividend yield of around 4%.

The fund was already offered to professional investors in August last year, the statement noted. Since its inception in August, the fund has returned 11.4%.

Starting this week, retail investors in Hong Kong can subscribe to the fund at Hang Seng branches and through Hang Seng e-banking, with minimum subscription amounts of HK$ 20,000 ($2,572) and HK$ 5,000, respectively. 

The fund will also be available on online distribution platforms, including Hang Seng’s SimplyFund platform starting from 12 April, with a minimum subscription amount of HK$1 and the mobile platform of Lufax Holding, Lu Hong Kong, starting from 29 March, with a minimum subscription amount of HK$100, the statement noted.

The new offering is managed by Hang Seng Investment Management, while Ping An of China Asset Management in Hong Kong acts as the sub-investment manager, responsible for the fund’s investments in debt securities.

“In the low interest rate environment, coupled with recent market volatility, it is difficult for investors to identify an optimal time to invest their wealth,” Rosita Lee, director and CEO of HSIM, said in the statement. 

“This fund offers a balanced investment strategy that focuses on Asia-Pacific assets, with the hope of offering investors the opportunity to capture income and growth potential in Asian stock markets while achieving lower volatility coupled with stable income through investing into Asian bonds,” she added.

In terms of market exposure, the fund’s assets are tilted towards North Asia, including Hong Kong, China, Taiwan and South Korea, as well as Australia. Meanwhile, information technology, consumer discretionary, real estate, financial and materials account for the fund’s major sector exposure, according to the statement.

Previously, both firms said that the fund was launched to pave the way for the upcoming official implementation of the cross-boundary Wealth Management Connect pilot scheme.

“This co-branded fund further strengthens our platform for future growth, particularly with the anticipated official implementation of Wealth Management Connect, which will create enormous business opportunities for the financial industry in the Greater Bay Area,” Lee said previously.

Part of the Mark Allen Group.