Ping An launches their first RAIF Fund in partnership with HSBC

RAIFs are not subject to local regulator approval before they are launched, permitting a significantly shorter time-to-market for new fund launches

HSBC Securities Services (HSS), part of HSBC's global banking and markets business, has been mandated as custodian and fund services provider by a Hong Kong based fund manager, Ping An of China Asset Management (Hong Kong) Co. Limited (PAAMC HK), for its first Reserved Alternative Investment Fund (RAIF) umbrella.

The Reserved Alternative Investment Fund (RAIF) vehicle combines the characteristics and structuring flexibilities of Luxembourg-regulated specialized investment funds (SIFs) and investment companies in risk capital (SICARs). However, RAIFs are not subject to local regulator (Commission de Surveillance du Secteur Financier, CSSF) approval before they are launched. This allows for a significantly shorter time-to-market for new fund launches.

The Ping An fund will first target institutional investors in Asia and will also be transformed into a UCITS vehicle to target both institutional and retail investors in Asia and Europe. The first sub-fund, the Emerging Market Income Fund, will invest in debt securities of emerging market countries including bonds available on the China Interbank Bond Market (CIBM) through Bond Connect.

The partnership with PAAMC HK now spans two continents in Asia and Europe with HSBC already providing trustee, global custodian, fund administration and custodian services to PAAMC HK's funds in Hong Kong.

Carol Hughes, head of client management, securities services, HSBC in Luxembourg, says: "We are delighted to be partnering with Ping An as they expand beyond Asia into Europe and to be able through the expertise we have in both Asia and Europe to help them successfully launch their first RAIF."