BNY Mellon has been appointed as global custodian by Industrial and Commercial Bank of China (ICBC) for a new qualified domestic institutional investors (QDII) fund in China launched by Harvest Fund Management.
Harvest Fund Management was the first joint venture to obtain a QDII license in 2007, while BNY Mellon was awarded the first global custody mandate for a QDII fund the same year. The Harvest Gold Fund, the custodians latest QDII mandate, was launched in July.
“With prevailing challenging global markets, exposure to commodities is in demand around the world, especially to gold which has been reaching record highs,” says Chong Jin Leow, head of Asia for BNY Mellon Asset Servicing. Chong notes that the number of QDII funds has grown by 50% in the first seven months of this year.
Asset managers are rolling out a greater range of innovative products, which is not only terrific news for investors who want greater returns and more choice, but a positive move forward for the development of the mutual fund market in China, Chong continues. We expect the number of QDII funds approved by the regulator to potentially double by the close of 2011.”
(CG)