Bank of China (BoC) is planning to come up with a fund of funds to invest in hedge funds – reported The Financial Times. The fund is expected to be offered through its Geneva-based private banking operation, Bank of China Suisse.
The proposal, which is in the early stages and yet to receive regulatory approval from Swiss authorities, comes at a time when the fund of funds industry, majorly based in Switzerland, is witnessing tough time. According to Hedge Fund Intelligence, a provider of hedge fund industry data, the industry has contracted more than 40% over the last one and half years.
However, on the contrary, investors and sovereign wealth funds of China have increasingly shown interest in investing in private equity funds and hedge funds. Reportedly, China Investment Corporation, a sovereign wealth fund, is said to be looking at investments in both single-manager funds along with a core investment in fund of funds vehicles. Similarly, BoC’s platform is also expected to be marketed to wealthy investors, reported the news paper.
