DST Global Solutions prepares its China fund management clients for RQFII scheme

Shanghai and Hong Kong – 12 June 2012

Leading provider of investment management software technology and services adds new functions to help clients adapt to requirements specific to RMB Qualified Foreign Institutional Investor (RQFII) regulations.

DST Global Solutions, a market-leading provider of software technology and services to the investment management industry, is helping its Chinese asset management clients prepare for participation in the recently launched RQFII scheme.

DST Global Solutions has been operating in China since 2003, servicing some of the largest and most respected names in the Chinese fund management industry. Through its flagship and award-winning asset servicing solution HiPortfolio®, DST Global Solutions is helping its clients to stay ahead of the industry and adapt to new investment, operational and regulatory initiatives.

Last December, China launched a RQFII pilot scheme to accelerate RMB internationalisation and further facilitate the backflow of RMB. The RQFII guidelines were released in late 2011, with an initial investment quota of 20 billion RMB allocated to nine Chinese asset managers and 12 securities brokerages. In April 2012, China expanded its RQFII scheme by increasing the investment quota to 70 billion RMB.

Geoff Harries, Global Head of Asset Servicing, DST Global Solutions said, “With the launch of the RQFII scheme, our clients in the fund management industry require a solution that is designed to work in global markets as well as help them meet the requirements of the Chinese fund management industry. As a client-responsive organisation, DST Global Solutions is always on the lookout for upcoming changes in the industry and through its HiPortfolio solution has the flexibility to support our clients as they expand into RQFII products.”

A member of senior management at a major Chinese asset management firm using HiPortfolio said, "We have been using HiPortfolio since 2004 and have been impressed with the depth of its functionality and its ability to handle all our requirements including recording, valuation, accounting and reporting. DST Global Solutions has long been committed to China as evidenced by the way they have responded to our needs and the regular enhancements made to HiPortfolio over the years. We have been offering trustee services for RQFII products since earlier this year and are delighted that HiPortfolio has the adaptability to support this development."

HiPortfolio is a market leading and complete asset servicing and fund accounting solution delivering trade and investment cycle functionality in an integrated environment. DST Global Solutions continues to invest in the development of HiPortfolio to address the unique requirements of the Chinese market, including the ability to support a wide range of Chinese investment instruments, and more recently, the capability to process renminbi denominated funds outside of China.

DST Global Solutions works with clients to combine industry experience, software skills and integration know-how to create the solutions that deliver value where needed. In the nine years that the company has been operating in China, it has carried out more than 50 client projects within the fund management industry. During this period, DST Global Solutions’ award winning HiPortfolio has grown to process in excess of 60% of insurance asset management activity in China.

Phil Hogan, Managing Director – Asia Pacific, DST Global Solutions said, “China is a strategic market for us. Its financial markets are fast-changing in a relatively strict regulatory environment, making it quite challenging for solution providers. We understand the market and our clients’ requirements, and will continue to monitor changing regulatory and market practices, whilst drawing upon our overseas experience and ensuring our solutions meet the requirements of the China market.”

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