BOCHK AM and Fubon AM announces strategic partnership in Taiwan region
Date: Nov 12, 2012
Categories: Markets & Exchanges
Keywords: BOCHK AM, Fubon AM
November 1st 2012 - BOCHK Asset Management Limited ("BOCHK AM") and Fubon Asset Management Co., Ltd. ("Fubon AM") today (1 November) signed a Memorandum of Understanding ("MOU") on a strategic partnership for an exclusive cooperation in investment advisory and business development in the Taiwan region.
Mr Richard M. Tsai, Vice Chairman of Fubon Financial Holding ("Fubon"), said, "Fubon has been very active in exploring the markets in the Mainland of China, Hong Kong and the Taiwan region over the past few years. In the asset management business, Fubon AM was the first financial institution that acquired the Qualified Foreign Institutional Investor ("QFII") quotas from the Mainland in 2011 to issue the first A-share ETF on the Taiwan Stock Exchange, i.e. the Fubon SSE 180 ETF in Hong Kong and the Taiwan region. In addition, in July 2011, Fubon AM became the first Taiwan based asset management company to join hands with the Founder Securities of the Mainland to establish Founder Fubon Fund Management Company Limited. This marks a milestone in the cooperation in asset management business development across the straits."
"Fubon AM is very delighted to sign the MOU with BOCHK AM. We would work closely with BOCHK AM to provide Taiwanese investors with diversified investment products, to satisfy their rapidly growing demands for RMB wealth management service. Under the strategic partnership, Fubon AM plans to appoint BOCHK AM as its overseas investment advisor or to become the sole fund distributor in the Taiwan region for the investment products offered by BOCHK AM," said Mr Tsai.
Mr David Wong, Deputy Chief Executive of Bank of China (Hong Kong) ("BOCHK"), said, "Fubon Financial Holding enjoys strong brand franchise for its innovation and commitment to promoting the development of RMB business. BOCHK, the sole Clearing Bank for offshore RMB business, has maintained the market leadership in RMB services by pioneering a number of premier financial products since 2004. Under this strategic partnership, both institutions will be able to combine their unique strengths to make a breakthrough in the financial market of the Taiwan region. We will deliver new investment solutions through Fubon's extensive distribution networks, allowing Taiwanese investors to invest in the economic growth of the People's Republic of China. I am confident that the strategic partnership will work solidly for mutual benefits, taking the regional development of RMB business into a new era."
Dr Au King Lun, Chief Executive Officer of BOCHK AM, said, "The two Cayman Islands based RMB bond funds managed by BOCHK AM have been among the top performers in the respective categories since their inception. In particular, our BOCHK RMB High Yield Bond (SP)* has been ranked by Bloomberg this year as one of the best performing offshore RMB bond funds launched globally, with over 20% returns so far. Through this new strategic partnership, we hope to work closely with Fubon AM on RMB related investment products, providing Taiwanese investors with an opportunity to maximise their potential returns."
"Leveraging our strategic partnership with Fubon AM, we will contribute our proven investment expertise and sound knowledge in the RMB bond fund market to the development of the investment products specially tailored for the Taiwanese investors," Dr Au added.
* The unauthorised scheme is not authorised by the Securities and Futures Commission in Hong Kong SAR and not available to the public of Hong Kong SAR.
Re-disseminated by The Asian Banker