GaoTeng Global Asset Management, the joint venture by the investment arm of Chinese internet giant Tencent and Beijing-based Hillhouse Capital, will launch its first mutual fund after receiving approval from the Hong Kong Securities & Futures Commission (SFC).
The GaoTeng WeFund-GaoTeng Asian Income Fund is Hong Kong-domiciled and focused on Asian US dollar-denominated corporate and government bonds with at least 70% of its portfolio invested in debt securities in Asia-Pacific region. The fund will also seek opportunities in other markets.
The fund also plans to invest at least 50% of its assets in investment grade bonds.
It aims to provide regular income and capital appreciation over the medium to long term.
Wonnie Chu has been named as portfolio manager of the new fund. Chu has more than 14 years’ research and investment experience in fixed-income, and worked at Harvest Global Investments, MetLife Investments Asia, Moody’s Investors Service (Hong Kong), and Lehman Brothers (Hong Kong).
Chu said: “The IMF has downgraded global economic growth forecast from 3.9% to 3.7% as a reflection of mounting pressure over Sino-US trade relationship, and fixed-income instruments are more appealing in market with low economic growth and moderate inflation.”
Retail expansion
The new fund is the firm’s first SFC-authorised retail product after it received the green light from the regulator to start its asset management business for retail investors.
Headquartered in Hong Kong, the company has acquired Type 4 and Type 9 licenses for the retail market. With these licenses, GaoTeng is able to set up overseas investment funds in Hong Kong or other qualified overseas destinations.
