As the area of digital assets continues to grow within the wealth management sector, Raffles Assets Management (HK) receives regulatory approval to launch a fund. The firm says it meets clients' underserved needs for a professional partner to manage such assets.

Raffles Assets Management (HK) Co, part of Raffles Family Office, is launching its first digital assets fund – a sign of how this field is continuing to expand in the wealth space.

Hong Kong’s Securities and Futures Commission has approved RAMHK’s business plan for managing portfolios that invest in virtual assets, Raffles said in a statement this week. 

The fund, available in US dollars, which is only available to professional investors, is set up as an open-ended portfolio. It actively manages exposure to the most liquid cryptocurrencies. It concentrates on long-term portfolio growth via diversification, tactical flexibility and professional oversight beyond single-asset strategies such as exchange-traded funds linked to bitcoin.

“Clients have noticed the significance of digital assets in their asset allocation of wealth management but struggle to find the right manager,” William Chow, deputy group CEO of Raffles Family Office, and responsible officer for RAMHK, said.

“This fund comes at an opportune time that meets clients’ underserved needs for a professional partner to manage their crypto assets – whether they are crypto natives or traditional finance investors looking for exposure to digital assets,” Chow said. 

“The fund also reflects our long-term conviction in digital assets as an essential part of wealth portfolios,” added Chow. “We see digital assets as a strategic asset class that will play a lasting role in wealth preservation and growth.”

Raffles Family Office has dual headquarters in Hong Kong and Singapore. Last July, it appointed former RBC Wealth Management CEO for Asia, Terence Chow, as chief operating officer. This role marked the re-appointment of a dedicated COO position following Yvonne Siu’s departure in 2021. In May last year it promoted its co-founder and managing partner, Kendrick Lee, to chief executive for Singapore.

The area of digital assets is growing. In February, for example, Standard Chartered Bank in Hong Kong, Web3 organisation Animoca Brands, and tech, media and telecoms firm HKT joined forces to build a stablecoin backed by Hong Kong dollars. The organisations’ joint venture wants to apply for a licence from the Hong Kong Monetary Authority.

See this feature from 2022 which takes an overview of digital assets. The term encompasses entities such as non-fungible tokens (used in art and other collectables); tokenized stakes in physical assets such as real estate; tokens linked to investments such as private equity; and smart contracts. A common point for them is that they are based on distributed ledger technology, aka blockchain, the foundation underpinning cryptocurrencies such as bitcoin. See this article that also delves into more detail about the terminology. Also, see here and here for more analysis and commentary.

(Editor's note: We continue to track how the crypto world influences wealth mangement, both as a business and what clients invest in, and are grateful for insights. Email tom.burroughes@wealthbriefing.com)