Financial regulators in Switzerland and Hong Kong signed a deal in December 2016 to allow eligible mutual funds to be distributed in each other’s markets through a streamlined vetting process.
The first firm to qualify for the Switzerland-Hong Kong Mutual Recognition of Funds (MRF) scheme was Harvert Global Investments.
In an interview with newspaper South China Morning Post, BEA’s chief executive Eleanor Wan said: “Switzerland is well known for its wealth management and private banking services. After getting approval to see our fund products in Switzerland, it will widen our customer base and allow Swiss investors to have access to our products, which are investing in Asian markets.”
BEA, which is a subsidiary of Hong Kong-based Bank of East Asia, told our sister publication Fund Selector Asia in February that it intended to take advantage of the new system through its joint venture with German asset management Union Investment.
Funds for sale
The two products on offer are the BEA Union Inv Asian Bond and Currency Fund and the Asia Pacific Mutli-Income Fund.
They form part of a batch of four funds approved by the Swiss Financial Market Supervisory Authority (Finma) to be sold to local investors. The SCMP article does not provide details of the other two funds on offer.
The BEA funds will be sold via IFAs, private banks, and other banking partners.
Harvest currently has two funds qualified for sale in Switzerland: China Equity and Asia Frontier Strategies.