Northern Trust’s hedge fund administration business will provide local market expertise and solutions to hedge fund clients as they participate in the Shanghai Qualified Domestic Limited Partner (QDLP) programme.
This specialist fund administration capability will be offered from Northern Trust’s Beijing office.
The Shanghai QDLP programme allows foreign hedge fund managers to raise funds onshore and invest them abroad. This will contribute to the growing hedge fund industry in China, paving the way for an established alternatives industry in the country.
“Asia is an attractive market for foreign hedge funds which are attracted by the region’s large pools of capital held by institutional investors,” says Peter Sanchez, head of Northern Trust Hedge Fund Services. “Through our proven expertise in hedge fund administration and market leading technologies, we are now able to support our hedge fund clients looking to take advantage of the new possibilities for investment offered by the Shanghai QDLP programme.”
Northern Trust Hedge Fund Services provides middle office and administration services, specialising in trade processing, valuation, real-time reporting, cash management, accounting, collateral management and investor servicing.
“The Shanghai QDLP programme marks the first time any foreign financial institution is permitted to raise capital from domestic investors in China and invest these proceeds offshore and will offer attractive opportunities to international hedge funds and domestic players alike,” says Michael Wu, country manager for Northern Trust in Beijing. “We are pleased to expand our award-winning hedge fund administration capabilities in support of this pilot programme from our Beijing office.”