Collaboration between BOCHKAM and Areca Capital
Focus Malaysia 10 Jul 2019 16:13

BOCHK Asset Management Limited (BOCHKAM) and Areca Capital Sdn Bhd (Areca) has entered into a collaborative arrangement. Under this collaboration, Areca has selected BOCHKAM’s BOCHK All Weather China High Yield Bond Fund as one of its targeted investment for Areca Flexi fixedINCOME Fund (AFFIF). AFFIF is a fixed income fund which aims to provide investors with relatively steady income and moderate capital appreciation. Moving forward, Areca hopes to explore more investment opportunities with BOCHKAM through investment by other funds managed by Areca or the possible distribution of BOCHKAM’s funds through Areca’s 3rd party funds platform.

Danny Wong Teck Meng, founder and Chief Executive Officer of Areca Capital Sdn Bhd said, “We are diversifying our investment portfolio in AFFIF so that our investors can have a wider choice of investment options. The BOCHKAM’s All Weather China High Yield Bond Fund fits well with our AFFIF’s fund strategy. Most importantly, it suits our investors’ risk profile”.

When asked the reason in choosing the RMB fund, he added, “We ventured into RMB funds as we have seen the growth in demand and stable appreciation of the currency since its opening up, 10 years ago. We believe now is a good time to include RMB selections into our fund investment portfolio.” “The fixed income Fund will complement Areca EquityTRUST Fund for asset allocation and diversification purpose for our clients.” Areca EquityTRUST Fund has won the Lipper Best Fund Award, Malaysia Equity under 3 years, 5 years and 10 years categories for 2 consecutive years in 2018 and 2019”

On 30 April 2019, Areca performed its initial investment amounting to RMB1.62 million into the BOCHK All Weather China High Yield Bond Fund. BOC Malaysia acted as its local RMB FX and RMB settlement bank for Areca. “We are glad that the investments were successfully and efficiently executed on the trading day. We are definitely looking forward to exploring further collaboration with Bank of China”, commented Edward Iskandar Toh, Chief Investment Officer of Areca Capital.

Mr Zhang Min, Chief Excecutive Officer of BOC Malaysia added on: “As the sole RMB clearing bank in Malaysia, BOC Malaysia is capable in providing RMB solutions covering loan and deposits, cross-border fund transfer, settlement and treasury services. We will always ensure in providing our best RMB services to facilitate the local demands.”

BOC Malaysia is an affliate of BOCHKAM under the same BOCHK group. BOCHKAM is a wholly owned subsidiary of BOC Hong Kong (Holdings) Limited and is one of the largest RMB fund managers globally, with discretionary and advisory mandates of USD 12.4 billion1. BOCHKAM utilizes its expertise in RMB investments and local insights, strengthened by the full support of Bank of China (Hong Kong) Limited, the sole RMB clearing bank and a major RMB participating bank in Hong Kong.

Mr. Shen Hua, Chief Excecutive Officer of BOCHKAM, said, “The fund launch is a major milestone for BOCHKAM. Our strategic partnership with Areca highlights the growing importance of RMB bonds as a new asset class for investors globally”. Mr. Shen added that “ever since the RMB internationalisation, we saw pick-ups and more demand of RMB denominated products. As the biggest RMB offshore centre, BOCHK committed to provide our best facilitation in driving the development of RMB offshore market. We look forward to supporting upcoming collaborations exploration with Areca and welcome any potential cooperation with other asset management companies in Malaysia”.

BOCHK All Weather China High Yield Bond Fund is a sub-fund of BOCHK Wealth Creation Series, an open-ended unit trust established as an umbrella fund pursuant to the Trust Deed and governed by the laws of Hong Kong. The investment objective of the Sub-Fund is to generate long-term capital growth and income in RMB terms by investing primarily in fixed income and debt securities denominated in RMB or other currencies.

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