COLLABORATION BETWEEN BOCHK ASSET MANAGEMENT LIMITED AND ARECA CAPITAL SDN BHD
Petaling Jaya, 10 July 2019:
Kuala Lumpur – 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”.
1 Source: BOCHK Asset Management Limited. Data as of 29 March 2019.
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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About BOCM
Bank of China Malaysia Berhad (“BOCM”) is a wholly owned subsidiary of BOC (Hong Kong) Limited, with BOC China as the ultimate shareholder. BOCM is the RMB Onshore Settlement Institutions (OSI) appointed by Bank Negara Malaysia since 2009 and RMB Clearing Bank by appointed People’s Bank of China since 2015. Headquartered in Kuala Lumpur, BOCM currently has 8 branches across Malaysia with 2 China-Visa processing centre as subsidiary. Read more about Bank of China Malaysia at http://www.bankofchina.com/my/en/
For enquiries, please contact:
Mr Han Jui Kwang han_juikwang@mail.notes.bank-of-china.com 03-2387 8252
About Areca Capital Sdn Bhd
Areca Capital is a fund management company licensed by the Securities Commission Malaysia to manage and distribute private mandates, unit trust funds and regulated activity of financial planning. We are registered with the Federation of Investment Managers Malaysia as one of the institutional unit trust advisors to distribute and market unit trust funds of other fund houses. Areca Capital focuses on private wealth management services moving forward. We are currently managing more than 20 unit trust and wholesales funds, with total value of funds under management within the group in excess of RM1.5 billion. Read more about Areca Capital at http://www.arecacapital.com/.
For further enquiries, please contact
Mr Wong Chaw Chern ccwong@arecacapital.com 012-405 0818
Mr Teong Jia Wei jwteong@arecacapital.com 019-5586153
About BOCHK Asset Management Limited
Established in 2010, BOCHK Asset Management Limited (“BOCHKAM”) is a wholly-owned subsidiary of BOC Hong Kong (Holdings) Limited. BOCHKAM is committed to providing retail and institutional investors with a wide array of Bond, Equity and Alternative Investments products such as private equity and real estate investments, as well as comprehensive investment solutions tailored to their risk/return profile and investment objectives. In addition, the company also manages investment funds for clients and customizes discretionary investment portfolios to maximize the potential returns.
Since its establishment, BOCHKAM has received numerous industry awards# in recognition of its outstanding performance. It was garnerned the “Best China Fund House” in 2019 Best of the Best Awards, organized by Asia Asset Management. It was also awarded “Most Innovative Asset Management Company” organized by International Finance. Furthermore, it was recognised as the “Best-in-Class, China Fixed Income”, Best-in-Class, RMB Fixed Income and “Best-in-Class, High Yield Fixed Income” organized by BENCHMARK.
# Source: Asia Asset Management, the awards given by Asia Asset Management are based on the performance as at 30 September 2018. For award details, please visit www.asiaasset.com.
Source: International Finance, the award given by International Finance is based on the performance as at 30 September 2018. For award details, please visit https://awards.internationalfinance.com/award-winners/.
Source: BENCHMARK, the awards given by BENCHMARK are based on the performance as at 30 September, 2018. For award details, please visit www.fundawards.asia.
