BlackRock won approval from Hong Kong regulators to launch a series of Hong Kong-domiciled, locally managed funds for retail and institutional investors, confirmed Kevin Hardy, BlackRock's Asia-Pacific head of beta strategies.
According to a BlackRock news release Thursday, three index funds — the BlackRock Hong Kong Equity Index fund, the BlackRock China Equity Index fund and the BlackRock Asia ex-Japan Equity Index fund — are the first to be approved for the BlackRock Premier Funds series.
Those funds are tied to the FTSE Mandatory Provident Fund index benchmark series. In a telephone interview, Mr. Hardy said the funds will allow BlackRock to tap into Hong Kong's fast-growing MPF platform, as well as the corporate defined benefit and defined contribution plans that likewise favor those benchmarks.
Longer term, BlackRock plans to build an extensive array of passive and active funds to meet the needs of Hong Kong-based investors, he said.
The move to launch BlackRock's first locally domiciled fund series in the Asia-Pacific region follows a year of consultations with clients and prospects, and reflects BlackRock's goal of being “locally relevant” in the markets in which it competes, said Mr. Hardy.