Latest news with #FidelityInternational
Bloomberg
13 hours ago
- Business
- Bloomberg
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago.
Business Times
2 days ago
- Business
- Business Times
Fidelity, BlackRock target Chinese demand for offshore funds
[HONG KONG] Fidelity International is poised to offer products that attract mainland investors chasing higher returns from overseas funds, according to sources familiar with the matter. The global asset manager is considering seeking approval for products under the decade-old Mutual Recognition of Funds scheme, said the sources, who asked not to be identified because the matter is private. It also plans to partner with its Chinese mutual fund company for domestic distribution, the sources added. BlackRock is making similar plans, said another source. A spokesperson for Fidelity International said the company is exploring 'a number of opportunities across asset classes' for the Mutual Recognition of Funds (MRF) programme. BlackRock did not respond to requests for comment. The moves come as Chinese investors poured tens of billions of US dollars into Hong Kong-based funds after regulators raised their contribution cap from 50 to 80 per cent in January. Started in 2015, the MRF allows cross-border fund investments between mainland China and Hong Kong. Mainland investors, who have consistently contributed more than Hong Kong buyers, are increasingly drawn to overseas opportunities due to deflationary risks and low bank deposit rates at home. Despite a pickup in private-sector sentiment earlier this year – fuelled by Deepseek's momentum and the easing of policy crackdowns – concerns over the country's long-term growth linger. In just one month, they poured 96.4 billion yuan (S$17.2 billion) into Hong Kong funds, lifting accumulated flows to nearly half of the 300 billion yuan quota. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The interest rate gap between China and the US is a key driver for demand in the products, said Rex Lo, managing director at BEA Union Investment, which has four products in the programme. US President Donald Trump's 'Liberation Day' tariffs 'created some noise' in global markets, but mainland investors still want offshore assets, he said. Two BEA Union Investment products in the programme saw assets surge more than 200 per cent as at May to US$450 million from US$202 million in December of 2024, thanks to strong flows from mainland investors. The firm declined to break down detailed contributions between Hong Kong and mainland investors. Although the funds are intended for both retail and institutional investors, onshore financial institutions – such as insurers and wealth managers – have been more successful in securing allocations, said the sources. Such an imbalance could draw regulatory scrutiny, they added, as the scheme was originally designed to meet retail buyer demand. 'The strong sales earlier in the year makes the programme attractive for many foreign companies,' said Ivan Shi, director at consultancy Z-Ben Advisors, who added that yuan devaluation pressure could slow down product approvals. However, mainland investors scaled back in April. They net sold some 22 billion yuan worth of assets from Hong Kong funds, according to the latest data available from the State Administration of Foreign Exchange on May 31. 'The sentiment was surrounded by tariff-driven concerns,' Marco Tang, deputy CEO for Amundi Hong Kong, said when describing the reason for the shift in April. Tang said Amundi has seen a 40 per cent increase of net inflows from two exiting funds in the programme as at March, following the relaxation of rules. The firm submitted another two funds to qualify for the scheme in October, and seeks to start selling those by mid-2025. Growth bottlenecks JPMorgan Asset Management, which runs seven of the roughly 40 products in the programme, saw mainland investors quickly snap up two bond funds in January, prompting the company to close subscriptions. In addition to regulatory approvals, companies are facing another bottleneck. Currently, only about half of the quota for Hong Kong-based funds has been used, because they are struggling to find enough buyers from the city to contribute at least 20 per cent of money for a product in the programme. Competition for the fund industry is fierce in Hong Kong, where investors have many choices, a reason why it's been hard to attract local retail interest, said BEA Union Investment's Lo. Fidelity International is likely to use existing funds already offered under the Hong Kong pension programme, as re-purposing them would be faster than building new ones large enough to meet qualification requirements, the sources familiar said. Fidelity is planning to start with fixed-income strategies, one of the sources said. The revised programme also allows companies to appoint fund managers who live outside of Hong Kong, benefiting global firms which usually have much larger teams in Europe and the US. Mainland investors have access to three other offshore investment programmes. Wealth Management Connect is limited to residents of Guangdong province – home to about 120 million people. The other two, the Qualified Domestic Institutional Investor (QDII) and Qualified Domestic Limited Partner (QDLP) programmes, have not received fresh quota approvals in the past year. China's top currency regulator said this week it is planning to lift cap flows for QDII. BLOOMBERG
Yahoo
2 days ago
- Business
- Yahoo
Fidelity, BlackRock Target Chinese Demand for Offshore Funds
(Bloomberg) -- Fidelity International is poised to offer products that attract mainland investors chasing higher returns from overseas funds, according to people familiar with the matter. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads How E-Scooters Conquered (Most of) Europe Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports The global asset manager is considering seeking approval for products under the decade-old Mutual Recognition of Funds scheme, said the people, who asked not to be identified because the matter is private. It also plans to partner with its Chinese mutual fund company for domestic distribution, the people added. BlackRock Inc. is making similar plans, said another person. A spokesperson for Fidelity International said the company is exploring 'a number of opportunities across asset classes' for the Mutual Recognition of Funds program. BlackRock didn't respond to requests for comment. The moves come as Chinese investors poured tens of billions of dollars into Hong Kong-based funds after regulators raised their contribution cap from 50% to 80% in January. Started in 2015, the MRF allows cross-border fund investments between mainland China and Hong Kong. Mainland investors, who have consistently contributed more than Hong Kong buyers, are increasingly drawn to overseas opportunities due to deflationary risks and low bank deposit rates at home. Despite a pickup in private-sector sentiment earlier this year — fueled by Deepseek's momentum and the easing of policy crackdowns — concerns over the country's long-term growth linger. In just one month, they poured 96.4 billion yuan ($13 billion) into Hong Kong funds, lifting accumulated flows to nearly half of the 300 billion yuan quota. The interest rate gap between China and the US is a key driver for demand in the products, said Rex Lo, managing director at BEA Union Investment, which has four products in the program. US President Donald Trump's 'Liberation Day' tariffs 'created some noise' in global markets, but mainland investors still want offshore assets, he said. Two BEA Union Investment products in the program saw assets surge more than 200% as of May to $450 million from the $202 million in December of 2024, thanks to strong flows from mainland investors. The firm declined to break down detailed contributions between Hong Kong and mainland investors. Although the funds are intended for both retail and institutional investors, onshore financial institutions — such as insurers and wealth managers — have been more successful in securing allocations, said the people. Such imbalance could draw regulatory scrutiny, they added, as the scheme was originally designed to meet retail buyer demand. 'The strong sales earlier in the year makes the program attractive for many foreign companies,' said Ivan Shi, director at consultancy Z-Ben Advisors, who added that yuan devaluation pressure could slow down product approvals. However, mainland investors scaled back in April. They net sold some 22 billion yuan worth of assets from Hong Kong funds, according to the latest data available from the State Administration of Foreign Exchange on May 31. 'The sentiment was surrounded by tariff-driven concerns,' Marco Tang, deputy CEO for Amundi Hong Kong, said when describing the reason for the shift in April. Tang said Amundi has seen a 40% increase of net inflows from two exiting funds in the program as of March, following the relaxation of rules. The firm submitted another two funds to qualify for the scheme in October, and seeks to start selling those by mid-2025. Growth Bottlenecks JPMorgan Asset Management, which runs seven of the roughly 40 products in the program, saw mainland investors quickly snap up two bond funds in January, prompting the company to close subscriptions. In addition to regulatory approvals, companies are facing another bottleneck. Currently only about half of the quota for Hong Kong-based funds has been used, because they are struggling to find enough buyers from the city to contribute at least 20% of money for a product in the program. Competition for the fund industry is fierce in Hong Kong, where investors have many choices, a reason why it's been hard to attract local retail interest, said BEA Union Investment's Lo. Fidelity International is likely to use existing funds already offered under the Hong Kong pension program, as re-purposing them would be faster than building new ones large enough to meet qualification requirements, the people familiar said. Fidelity is planning to start with fixed-income strategies, one of the people said. The revised program also allows companies to appoint fund managers who live outside of Hong Kong, benefiting global firms which usually have much larger teams in Europe and the US. Mainland investors have access to three other offshore investment programs. Wealth Management Connect is limited to residents of Guangdong province — home to about 120 million people. The other two, the Qualified Domestic Institutional Investor (QDII) and Qualified Domestic Limited Partner (QDLP) programs, have not received fresh quota approvals in the past year. China's top currency regulator said this week it is planning to lift cap flows for QDII. --With assistance from Zhang Dingmin. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P.
Bloomberg
2 days ago
- Business
- Bloomberg
Fidelity, BlackRock Target Chinese Demand for Offshore Funds
Fidelity International is poised to offer products that attract mainland investors chasing higher returns from overseas funds, according to people familiar with the matter. The global asset manager is considering seeking approval for products under the decade-old Mutual Recognition of Funds scheme, said the people, who asked not to be identified because the matter is private. It also plans to partner with its Chinese mutual fund company for domestic distribution, the people added. BlackRock Inc. is making similar plans, said another person.
Straits Times
6 days ago
- Business
- Straits Times
Me & My Money: Early start in investing compounded into financial confidence
SINGAPORE – Finance professional Paul Chong got a head start in investing before even stepping into the workforce. His parents gave him $10,000 for investment in his final year of university, which he put into a portfolio of stocks. His prudent upbringing shaped his financial values – he was also brought up to never spend more than what he had. Fresh out of school in 2007, he started his investment management career with Fidelity International in Hong Kong, where he worked as an investment analyst for five years focusing on fundamental research in the Asia ex-Japan region. He then worked as a portfolio manager of Eastspring Investment's global emerging markets equity team before moving on to head the Greater China equity strategy at the same company. In mid-2024, Mr Chong, 43, with his 18 years of investment management experience, then co-founded investment management firm Bonham Investments. Bonham Investments, which Mr Chong does portfolio management for as well, helps its clients preserve and grow their capital over the long term through the funds that it offers. 'Our key differentiation is that our founders invest more than 80 per cent of their net worth into the funds that we manage to ensure that we have strong alignment of interest with our clients and significant skin in the game in the funds that we manage,' he said. Mr Chong holds a bachelor's degree in business management, majoring in finance from Singapore Management University. He is married with two sons aged eight and four. His wife, 36, works as an account manager. Q: Do you invest in anything? If yes, what do you invest in and why? I mostly invest my money in the stock market. Over the past 18 years, I have consistently invested over 80 per cent of my net worth in a portfolio of 15 to 30 stocks. I tend to put all my eggs into one basket and watch the basket very closely. The volatility is manageable but inevitable given it's a portfolio of stocks. However, if I had a long runway I tend to believe that volatility is not a risk, but permanent capital loss from picking the wrong stock is. The portfolio has been compounding at close to 15 per cent per annum over the past 18 years. What was a small portfolio 18 years ago has snowballed into the Bonham Asia Fund that I manage today. Q: What's your biggest or most valuable asset right now? My investment in the Bonham Asia Fund is by far the biggest asset I have right now. Q: What's your approach to growing your money? I am a firm believer of compounding, largely influenced by the books I read on Warren Buffett. I even made a trip to Omaha in 2024 before starting my own firm Bonham Investments. My journey in investment began quite early when I was in my final year of university when my parents 'seeded' me $10,000 to invest Q: Did you collect anything when you were younger? I have always enjoyed red wine but it was during the Covid-19 pandemic that I started buying red wine in larger quantities, thinking that I could sell them if I don't drink them. I bought mostly highly rated red wine at reasonable prices, which is quite similar to my investment style. Unfortunately, I ended up consuming most of them and selling a very limited number of them. I have over 100 bottles of wine at home at any point of time. Q: What has been your biggest financial mistake? I was in the thick of the bull market when I joined Fidelity fresh out of school in 2007. My first assignment as a young analyst was to cover the small capitalisation companies in Asia. Many of the companies that I looked at were trading at elevated valuations without much differentiation in the quality of the business. There was this small cement company that I really liked, and I pitched to a few portfolio managers to invest in it. When the Global Financial Crisis (GFC) came, the share price of this company corrected 50 per cent within a short period of time. It was then I was able to fully appreciate what Warren Buffett always says: 'Only when the tide goes out do you discover who has been swimming naked.' I believe we lost a few million US dollars for our clients in the funds. Since then, I have learnt the importance of deep fundamental research and investing with a margin of safety to avoid large capital loss Q: What has been your best financial decision? I was fortunate to learn from many experienced investors in Fidelity, not just in Asia but globally. One incident was particularly vivid. In the midst of pessimism during the GFC, an experienced and successful portfolio manager from our London office came to the Hong Kong office to share his experience in handling crisis, and the investment opportunities that could arise in a crisis. Many of the investors, myself included, went back to the drawing board to pick out high-quality companies with strong balance sheets and competitive advantages that could emerge stronger from a crisis. We eventually made a few hundred million US dollars for our clients on just one stock. It was also then that the contrarian investor in me started to develop Q: Money wise, what were your growing-up years like? I grew up in a middle-income family. My parents have always been prudent on finances. My siblings and I are instilled the value from a very young age not to spend more than what we have. Although I have never run into deficit, I do not have much savings before I started working. A good night out with my buddies or a good meal with my girlfriend could then easily deplete 30 per cent of my savings. I was only able to save substantially more after I started working, most of which would be channelled into investments as cash does not generate much interest, or even worse, the value could be eroded by inflation. Now, my family of four stays in a freehold three-bedroom apartment in the East, which we bought three years ago. I am driving a Kia Sorento, which is more of a family car. We switched to this car when my younger son was born and just before the COE supply was expected to tighten. I do not have much affiliation with cars, as I see them only as a mode of transportation. That said, I did have a dream of driving a convertible when I was younger, which I managed to fulfil when I was working in Hong Kong, where the cost of owning a car is much lower. Q. What was your first job? My first job was a research associate with Fidelity in Hong Kong. I was extremely fortunate because Fidelity only hired two fresh graduates in Asia, and apparently they received thousands of applications. Q. Did you do any part-time jobs? During my army and university days, I worked part-time as a tutor, table tennis coach, and umpire during my free time to cover some of my expenses. Q. What would you do if you suddenly had a windfall of $1 million? I would invest the money in the Bonham Asia Fund and let it compound. I don't think the windfall would change my lifestyle nor my spending habits. Right now, I am more focused on building the track record of the fund and generating the returns for my clients. Q. If you suddenly only had $100 to your name, what would you do with it? I would still invest the money in the stock market because I think one should always stay invested, regardless of the size. However, the amount is really not much in the bigger scheme of things. I will probably have to update my CV and start looking for a job in the asset management industry, where I have developed my skill set and network over the past 18 years. 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