Open-ended fund companies

The Open-ended Fund Company (OFC) is a modern investment fund structure launched in Hong Kong in 2018.

It was designed to strengthen the city status as a premier global asset management hub by offering a flexible, corporate-structured vehicle for funds of all strategies

Open-ended fund companies

The Open-ended Fund Company (OFC) is a modern investment fund structure launched in Hong Kong in 2018.

It was designed to strengthen the city status as a premier global asset management hub by offering a flexible, corporate-structured vehicle for funds of all strategies

Overview

An investment fund established in corporate form with limited liability and variable share capital in Hong Kong.

As the primary regulator, the SFC processes registrations and oversees OFCs.

The Companies Registry (CR) is responsible for the incorporation and corporate filings of OFCs.

OFCs, whether publicly or privately offered, are required to be registered by the SFC. Same as other publicly offered funds, publicly offered OFCs are also required to obtain prior authorization from the SFC, unless an exemption applies.

An OFC can determine its subscription and redemption frequency and impose restrictions subject to clear disclosure.

Source: www.sfc.hk

Key Features

Corporate Structure: an OFC is an incorporated legal entity registered in Hong Kong. This provides a familiar framework for managers and investors, featuring limited liability for shareholders.

Open-ended Nature: unlike a typical company, an OFC can create and cancel shares on demand to meet investor subscriptions and redemptions. This allows the fund capital to flexibly grow or shrink based on market interest.

Cost-savings over offshore structure: no duplication of service providers or fees

Umbrella structure with segregation: an OFC can be established as an umbrella fund with multiple sub-funds. Each sub-fund can pursue a different investment strategy, and its assets and liabilities are legally ring-fenced from other sub-funds within the same umbrella.

Robust regulatory oversight: an OFC must be managed by an SFC-licensed investment manager. Its assets must be held by a qualified independent custodian.

OFC structure

Source: www.sfc.hk

Disclaimer

The information contained on this website is for general informational purposes only and does not constitute, nor should it be construed as, an offer, solicitation, invitation, or recommendation to the public. This website is not intended to promote or market any Open-ended Fund Company (OFC) to the public in Hong Kong or elsewhere.

The content does not constitute investment, legal, tax, or other professional advice. Users are advised to consult their own professional advisors before making any investment or financial decisions. The inclusion of contact details and general information about OFCs registered with the Securities and Futures Commission (SFC) does not imply endorsement or approval by the SFC or any other regulatory authority. No representation or warranty is made regarding the accuracy, completeness, or timeliness of the information provided.

By accessing this website, you acknowledge and agree that the information provided is for reference purposes only and should not be relied upon for making investment or financial decisions. No offers or solicitations are made through this website to the public or any individual.

No material contained on this website may be modified, copied, transmitted, distributed, and/or reproduced without the prior written consent of Qiao Group OFC. We reserve the right to take legal action against any party for any loss or damages resulting from the modification, copying, transmission, distribution, and/or reproduction of any material contained on this website.