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HK-listed CISI enters public funds arena

Separately, another Hong Kong-listed China-focused firm reported assets growth of 15% during the first five months of the year.

China Industrial Securities International Asset Management (CISI AM) has received approval from the Securities and Futures Commission (SFC) to launch the China Core Asset Fund, according to records from the regulator.

CISI AM is the asset management arm of Hong Kong-listed China Industrial Securities International Financial Group, which runs a global securities and futures brokerage and has institutional sales and private wealth management, according to the firm’s website. The ultimate parent group is Fujian-based Industrial Securities.

FSA sought more information from CISI AM, but the firm declined to provide details on the investment strategy of the new fund.

CISI AM’s China Core Asset Fund will be the firm’s first SFC-authorised product, SFC records show. However, it has been managing funds on behalf of professional investors since 2012, according to the annual report of parent CISI.

As of the end of December, the firm’s AUM was HK$7.77bn ($1bn), which includes assets in privately-offered funds and discretionary portfolio management.

According to the firm’s website, the CISI AM offers structured bond funds, fixed income and equity funds, fund of funds and private equity funds. Currently, it is developing other conventional products, such as balanced funds, and is also looking at the alternatives and passive categories.

The firm offered only a vague statement of strategy in the annual report: “The group will focus on the core assets in China and continue to enrich product categories, while keep improving operational capabilities of the asset management business and brand building.”

Revenue from the asset management business is still small at HK$19.2m, representing only 2% of the CISI group’s total revenues.

Value Partners

Another Hong Kong-listed asset manager, Value Partners, reported that assets grew 15% to $17.2bn during the first five months this year after a turbulent market last year.

In 2018, the firm’s assets were down to $15bn despite $1.2bn in net inflows. In 2017, assets were$16.6bn.

“The growth in our AUM [during the first five months] was mainly driven by a combination of continued strong flows into our Greater China High Yield Income Fund, the growth of our China business and performances by our [flagship] funds,” a Value Partners spokeswoman said, but did not provide inflow data.

To-date, the Greater China High Yield Income fund has grown to $6.7bn from $4.8bn in December, according to FE data.

Part of the Mark Allen Group.