Pictet's global multi-asset fund triples to $5 billion on China inflows

By Summer Zhen

HONG KONG, Sept ‌15 (Reuters) - A global ​multi-asset fund ​managed by Swiss asset manager Pictet has seen its size tripling to more than $5 billion this year, helped by Chinese investors' rush into overseas assets, including ‌alternatives and products offering exposure to AI supply chains.

The growth comes after ⁠Beijing tightened scrutiny of offshore investing through unlicensed brokerage accounts earlier this year, bolstering demand for foreign funds sold ‌via legal, cross-border channels.

The Hong Kong-domiciled ‌Pictet Strategic Income Fund has seen its assets under management (AUM) swell to $5.1 billion from $1.6 billion at the beginning of the year, according to the firm.

About 60% of the fund's ​AUM came from mainland Chinese retail market through the Mutual Recognition of Funds (MRF) scheme, Freeman Tsang, head of intermediaries for Asia ex-Japan at Pictet Asset Management, told Reuters.

The MRF ⁠scheme is a cross-border investment channel as part of which qualified Hong Kong funds are allowed to sell their products on ​the mainland.

"Deposit yield at home has been coming down, while the AI sector has been performing quite well since the launch of ChatGPT, (and) ​you have this growth feature emerging globally," Tsang said.

China ‌announced a major crackdown on cross-border investment through "illegal" cross-border securities in May and said the action was aimed at channel outbound investments via legal ⁠channels and protect investors.

Qualified Domestic Institutional Investor (QDII) programme is a key channel for Chinese investors to buy overseas assets.

But due to the tighter regulatory quota for the QDII programme, foreign managers are increasingly looking ⁠to newer channels such as MRF and Wealth Management Connect to capture strong mainland demand.

The Pictet Strategic Income ​Fund led the mainland net inflows via MRF channel for the first half this year among 34 funds tracked by Morningstar, attracting HK$16.3 billion ($2.08 billion).

An August fund newsletter showed its top 10 holdings include U.S. ‌Treasuries and gold, as well as U.S. tech giants Amazon, Alphabet and Nvidia. The fund is up 17% for the first eight months, ‌following a 18% gain in 2025.

Tsang said he expects MRF to become a mainstream channel like QDII ⁠as it strengthens the fund sector ‌ties between Hong Kong and ​mainland China. Pictet plans to apply for two additional MRF funds, he said.

($1 = 7.8439 Hong Kong dollars)

(Reporting by Summer Zhen; Editing by Sumeet Chatterjee and ‌Lincoln Feast.)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wall St opens lower as oil, bond yields mover higher
• Tigrayan leaders say new war with Ethiopian government has begun, as fighting erupts
• Dramatic eviction of 87-year-old Madrid tenant spotlights Spain's housing crisis