BNY Mellon Asset Servicing, a global leader in securities servicing, was appointed by the Industrial and Commercial Bank of China Limited as Overseas Custodian for its record-breaking Qualified Domestic Institutional Investor (QDII) fund in China, further strengthening its ties in China.
This mandate was won in partnership with BNY Mellon Asset Management, which was appointed to provide sub-advisory services in relation to China Southern’s QDII fund mandated by China Southern Fund Management Co. Ltd (China Southern). China Southern’s QDII fund launched at a capped $4 billion in assets having received $6.5 billion in subscriptions from Chinese investors.
The QDII programme enables Chinese investors to access foreign fund management capabilities. China Southern, the first regulated fund management company in China, was among the first Chinese asset management companies to be authorized to develop and market QDII products. A leading selection of BNY Mellon Asset Management investment subsidiaries are the sub-advisors to China Southern on this mandate, which gives global equity exposure with alpha generated from asset allocation, stock selection and long only fund selection.
“BNY Mellon Asset Servicing is the leading global custodian and fund administrator to QDII funds in China,” says Zhou Yueqiu, general manager of the Asset Custody Department at ICBC. “We selected BNY Mellon Asset Servicing as overseas custodian to ensure that QDII funds would receive the highest standards of efficiency and capability.”
Chong Jin Leow, head of Asia at BNY Mellon Asset Servicing, says, “We are extremely pleased to support the continued development of the QDII market in China. Our partnership with China Southern and ICBC to bring their highly successful QDII product to market highlights the time, effort and support we are dedicating to this important market segment.”
Other custodians are also providing overseas custody services for QDII products. Last week it was announced that Brown Brother Harriman will serve as an overseas custodian for a QDII scheme. ABN AMRO Mellon and Northern Trust also have agreements with Chinese banks.