Hong Kong investors are becoming interested in European equities as part of their diversification strategy, despite a recent rally in domestic stocks that saw the Hang Seng Index (HSI) hitting record highs last month, according to Natixis Global Asset Management (NGAM).

"The market has been very interested in European stocks in the last few months which is why we're organizing a European team event in Hong Kong on Friday next week," says Madeline Ho, Singapore-based managing director and head of wholesale distribution, Asia Pacific for NGAM who's visiting Hong Kong.

Part of this event involves bringing in speakers from NGAM's stable of boutique fund managers to speak about the current issues affecting the European markets, including Mirova, a value-focused fund manager specializing in sustainable investing; Ossiam, which specializes on ETFs; and NGAM which is bringing in its global economist.

Hong Kong investors are interested in European equities as means of enhancing yield on their existing portfolio as well as to improve diversification, according to Davy Yuen, head of wholesale distribution in Hong Kong for NGAM.

The asset manager with US$880.3 billion in global assets under management (AUM) as of March 31 2015 has managed to grow its Asian business rapidly since it was launched in November 2012.

In Asia, NGAM has US$35 billion of AUM generated from investors in the region. However about 90% of this regional AUM is from institutional investors which is why NGAM is seeking to expand it retail business.

The bulk of NGAM's retail business in Asia is private banking clients although it is seeking to expand to clients of retail commercial banks, independent financial advisers, and insurance clients.

The Hang Seng Index soared 707.53 points, or 2.7 per cent, on April 8 to finish at 26,944.39, having earlier touched a fresh seven-year high of 27,922.67. The index has surged to levels last seen in 2007, just before capital markets crashed in the global financial crisis of 2008.