Lion Global Investors to target European investors

The €20bn Singapore based asset management group Lion Global Investors has launched two Ucits III compliant funds on BNP Paribas’ Luxembourg platform in order to better access the European investment market.

Lion Global is hoping European investors will be attracted to Asian high-yield assets. It wants to grow its cross-border fund distribution across Asia and other regions to maximise assets, drive economies of scale and grow its asset management business.

LGI has chosen the Ucits label for its distribution strategy to obtain efficient market entry while ensuring their funds remain compliant with regulations in multiple jurisdictions.

The Ucits funds, Asian High Yield Bond Fund and Asian Local Currency Bond Fund, are bond funds structured as Luxembourg Sicavs. According to Lion Global, the launch of these funds is part of the company’s strategic growth plan to gain an international foothold outside of the Asia-Pacific market although. The funds will also be marketed in Asia where the Ucits brand is widely recognised.

The two Ucits funds aim to generate total returns over the medium to long term through active portfolio management and a combined top-down and bottom-up investment strategy driven by fundamental, technical and valuation analysis.

Kong Siew Cheong, chief marketing officer at Lion Global Investors said the company is “seeing strong appetite for Asian bonds in Europe and North Asia. In harvesting this global interest, it’s a logical and timely step for us to offer Luxembourg-domiciled Sicav funds for global investors to capitalise on Asia’s growth.”

The Asian High Yield Bond Fund is to be managed by Veronica Ng, Lion Global’s team leader for Asian credits who has 26 years of financial services experience. The Asian Local Currency Bond Fund is to be managed by Goh San San, Lion Global’s team leader for Asian local funds who has 17 years of investment experience.

Both the Asian High Yield Bond and Asian Local Currency Bond funds are available to retail and institutional investors. The minimum investment for Class A shares is SG$1,000 or $1,000.

“BNP Paribas has a truly unique Ucits capability that will help us build our business in new markets,” said Gerard Lee, chief executive of Lion Global Investors.

According to Lawrence Au, head of Asia Pacific at BNP Paribas Securities Services, “the market is changing and Asia-based asset managers require a completely integrated international solution to capture new sources of flow from Europe and across Asia.”

Lion Global is 70% owned by Great Eastern Holdings (Great Eastern) and 30% owned by Orient Holdings, a wholly-owned subsidiary of the Oversea-Chinese Banking Corporation (OCBC Bank). Its clients include government and government-linked corporations, public and private companies, charitable organisations and individual investors.

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