HSBC Bank (China) Limited (“HSBC China”) today announced the official launch of the “One-to-One Private Fund”, a customised investment solution offered exclusively to one specific investor to meet their peronalised investment needs. HSBC is the first international bank in mainland China to distribute “One-to-One Private Fund” to qualified High Net Worth (HNW) investors, unlocking a new collaboration model between international banks and fund houses.
Based on the number of investors and investment threshold, the bank provides both “One-to-One Private Fund” commonly known as “One-to-One Segregated Account” locally, and “One-to-Many Private Fund”. International banks, including HSBC China, already offer “One-to-Many Private Funds” to investors in mainland China. As the concept of tailor-made asset allocation becomes more prevalent, “One-to-One Private Fund” solution has become one of the preferred investment options for HNW investors.
Richard Li, Executive Vice President and Head of Wealth and Personal Banking, HSBC China, said: “One-to-One Private Fund solution offers HNW investors tailor-made investment strategies with flexible investment parameters, using a scientific way to match investors’ asset allocation needs, investment objectives and risk appetite. Compared with public offering products or One-to-Many Private Funds, One-to-One Private Fund solution has the advantage of addressing clients’ personalised wealth needs.
“As China’s wealth management market enters a new phase of transformation, the distribution of One-to-One Private Fund further enhances international banks’ asset allocation capabilities through deeper collaboration with asset management institutions.”
HSBC China has partnered with HSBC JinTrust Fund Management Co., Ltd (“HSBC JinTrust”), the asset manager manufacturing and managing the customised fund, to distribute the One–on-One Private Fund solution.
Dong Wang, CEO of HSBC JinTrust, said: “As China accelerates the opening up of its capital markets, the institutionalisation of A-shares is a clear trend. In the past three years, the median increase of all A-share listed companies was only -16.5%, while the median return of equity funds and hybrid funds reached 48.6%1 .
“Professional institutions as represented by fund houses play an increasingly important role in helping investors capture market opportunities. HSBC JinTrust is pleased to forge innovative and new collaboration models for customised asset management services with HSBC China. Leveraging our investment strengths and deep insights in China, we aim to provide mainland investors with more professional and diversified asset management solutions.”
According to the regulations, the investment scope of “One-to-One Private Fund” covers equities, bonds, fixed income, securities and investment funds, central bank bills, short[1]term margin trading, asset-backed securities, cash equivalent and other assets approved by the China Securities Regulatory Commission.