The investment firm has taken advantage of the Mutual Recognition of Funds regime to sell its Hong Kong-registered fund on the other side of the border.

A Hong Kong-domiciled fund run by Schroders, the UK-listed investment house, has won the right to be sold in mainland China under the cross-border funds registration system between the Asian jurisdictions.

The Schroder Asian Asset Income Fund has been approved for sale in mainland China under the Mutual Recognition of Funds.

The fund is actively managed, holding a variety of assets. It aims to generate stable long-term income by focusing on assets that provide sustainable yields. The fund had HK$37.4 billion (around $4.97 billion) of assets under management as of 31 March 2017.

The master agent for the fund on the mainland is Bank of Communications Schroder Fund Management Co, Schroders’ Mainland China joint venture. The fund expected to be sold through foreign and local distributors, including online platforms.