Investment Funds: Hong Kong

Hong Kong Funds

Although Hong Kong has long been considered a premium asset management jurisdiction in Asia, the choice of fund vehicles until recently has been extremely limited. This has changed with the introduction of the open-ended fund company (OFC) in 2018 and the limited partnership fund in 2020. Funds can now be established in Hong Kong either in corporate form as OFCs, limited partnership funds or as previously, in the form of a unit trust.

Charltons has extensive experience advising clients on the choice of fund vehicle, the fund structure, formation and establishment of funds. Charltons also has extensive experience in advising investment managers in respect of marketing the fund, investments and exit strategies and advising on compliance with relevant Hong Kong regulatory laws. Funds that Charltons has advised on include limited partnerships, closed and open-ended fund companies and unauthorised unit trusts.

When advising on the establishment of funds, we will focus on:

• advising on the structure of the fund
• drafting the constitutional documents (such as the instrument of incorporation for the establishment of an OFC) of the fund
• drafting the offering memorandum of the fund
• drafting transaction documents such as the subscription agreement and investment management agreement
• reviewing the custodian agreement and administration agreement
• drafting any term sheets
• liaising with regulators where applicable (for example, the Securities and Futures Commission (SFC) with respect to the establishment of an OFC)
• assisting with and coordinating the appointment of other professional persons / service providers