Hong Kong – Citi has been appointed by BEA Union Investment Management Limited (BEA Union Investment) as fund custodian and administrator for its first mutual fund restructure comprising five funds into an open-ended fund company (OFC) structure. Citi has been providing custody and fund services including fund accounting, transfer agency and FX share class hedging to BEA Union Investment since 2013.
"We are undertaking our first-ever fund structure conversion from unit trusts to an OFC as we are committed to ensuring that our investment vehicles are structured in the most efficient manner and well positioned for market development. It is also a move to support the government's initiative to facilitate Hong Kong as an asset management hub. Citi as a custodian has unparalleled experience in this field and is therefore a natural partner," said Eleanor Wan, Chief Executive Officer of BEA Union Investment.
"We are honored that BEA Union Investment has selected Citi for its inaugural OFC fund restructure," said David Russell, APAC Head of Securities Services and Hong Kong Markets Head at Citi. "We have been able to provide custody and fund services to OFC funds since their inception, and we continue to invest in our custody franchise to meet the needs of our institutional clients."
An OFC is a legal structure for Hong Kong domiciled funds with variable capital that can be used for both traditional and alternative funds. Citi has been active in the OFC space and has been providing custody and fund administration services to OFCs since the regime was launched by Hong Kong's Securities and Futures Commission in July of 2018.
With over $30 trillion1 of assets under custody and administration and the industry-leading proprietary network spanning over 60 markets, Citi Securities Services provides clients with extensive on-the ground local market expertise, innovative post-trade technologies, customized data solutions, and a wide range of custody and fund services that can be tailored to meet clients' needs.
1 As of Q2 2021. AUC/A figure separately represents gross assets for which Citi provides Global Custody and sub-custodian services via its Direct Custody and Clearing business and includes Issuer Services. Citi previously reported AUC/A numbers on a net basis, therefore discounting assets serviced by both businesses.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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