The H&A Aktien Small Cap EMU Fund received approval from the Securities and Futures Commission (SFC) last week, according to the regulator’s website.
This is the firm’s first product for retail investors in Hong Kong.
The German asset manager does not have any licenses in the SAR, SFC records show. However, parent company, Shanghai-headquartered Fosun Group, holds three licenses by the SFC, including dealing in securities (type 1), advising on securities (type 4) and asset management (type 9).
In 2016, Fosun acquired H&A, a private bank in Germany, which has private banking, asset management and investment banking units, according to the group’s interim report 2019.
Fosun is a Chinese conglomerate listed on the Hong Kong Stock Exchange with total assets of RMB 681.51bn ($99.1bn) as of the end of June 2019, according to the firm’s website.
FSA contacted Fosun but it was unable to reply in time for publication.
The product
This small cap fund, which aims to invest in “promising” small companies in the Eurozone, was originally launched in Europe in 1999.
The top three holdings are Vestas Wind Systems (5.18%), agricultural company KWS SAAT (4.76%), and French consumer durables company SEB SA (4.76%), according to its factsheet. The largest geographic exposure is Germany (52.66%), the factsheet shows.
It is the only product listed under “Recognised Luxembourg UCITS Funds” which means it is eligible for trading through the cross-border scheme between Luxembourg and Hong Kong, according to records from SFC.
Frankfurt-headquartered H&A also provides 11 products for accredited investors in Singapore, according to FE Fundinfo.
This month, H&A said it has agreed to acquire Bankhaus Lampe. According to H&A, the purchase “will create one of the leading private banks in Germany with around 1,400 employees, €35bn in assets under management, €135bn in assets under custody and a balance sheet total of about €10bn”.
The H & A Aktien Small Cap EMU Fund vs category average
