Hong Kong-based firm Value Partners will be launching a technology-focused multi-asset product and is preparing to develop a Greater Bay Area product, according to Eric Poon, managing director and head of sales.
It recently received approval from Hong Kong’s Securities and Futures Commission to launch the Asian Innovation Opportunities Fund.
There are already several technology-focused products in the market. In Hong Kong, there are 23 SFC-authorised funds under the telecommunications, media and technology sector (TMT).
However, Poon believes that the firm’s product will be different because it will focus on Asia-Pacific markets.
Out of the 23 TMT funds, only two are targeting Asia-Pacific. Three are addressing in China and the rest are global products.
This is not the first time that the firm has launched a thematic product. In April 2015, it launched a healthcare-focused product, which now has $50m (£63.4m, €56.4m) in assets and is only available to professional investors, according to Poon.
A multi-asset product
Unlike other technology products, the Asian Innovation Opportunities Fund is a multi-asset product, Poon added.
“When we want to be a bit defensive, we could invest into bonds and maybe cash.
“The market could be choppy and having a cushion effect could prove to be important,”Poon said.
The fund can allocate up to 100% of its assets to bonds, according to Vincent Ching, senior director for intermediary sales. However, although it is a multi-asset product, the fund is not a balanced fund and will focus more on equities.
Under “normal circumstances”, bond allocation will be below 10%, Ching added.
It also has the flexibility to invest up to 30% in global tech stocks if the fund manager finds good opportunities. The fund will be managed by a dedicated multi-asset team, which has been managing a global multi-asset product that was launched in 2015.
The product will look at four themes, which are e-commerce, fintech and online entertainment; artificial intelligence, big data and the internet of things; electric vehicle; and automation.
Ching added that the fund will not just look at the traditional IT sectors. For example, it can invest in banks that are utilising new technology to improve their operations and revenues.
The product is still being developed. The firm expects it to launch in the first quarter of 2019, Ching noted.
It will be distributed by six retail banks, according to Ching.
Products in the pipeline
The firm is also planning to introduce a fund focused on the Greater Bay area. The area comprises Hong Kong, Macau and nine mainland cities: Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Zhaoqing, Huizhou and Jiangmen.
“The Greater Bay Area has become a prominent theme now,” Poon said.
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