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Pictet Fund Triples to $5B on China AI Craze
15 Sep
Summary
- Pictet fund assets surged to $5.1 billion from $1.6 billion.
- 60% of fund assets came from mainland China via MRF scheme.
- Fund gained 17% this year, following an 18% gain in 2025.
The Pictet Strategic Income Fund has experienced remarkable growth, with its assets under management tripling to over $5.1 billion as of 2026-09-15T06:40:25+00:00. This expansion is largely attributed to mainland Chinese investors increasing their allocation to overseas assets, including alternative investments and those with exposure to artificial intelligence supply chains.
Approximately 60% of the fund's substantial assets now originate from mainland China's retail market. This influx is facilitated by the Mutual Recognition of Funds (MRF) scheme, a cross-border investment channel that allows qualified Hong Kong funds to be sold in mainland China. This channel has become increasingly attractive as domestic deposit yields decline.
Recent regulatory actions by Beijing have tightened scrutiny on offshore investing through unlicensed channels, thereby boosting demand for legally sanctioned foreign funds. The Pictet Strategic Income Fund led net inflows via the MRF scheme in the first half of 2026, attracting HK$16.3 billion ($2.08 billion).
With a year-to-date gain of 17%, following an 18% rise in 2025, the fund's top holdings include U.S. Treasuries, gold, and major U.S. tech companies. Pictet anticipates the MRF scheme will evolve into a mainstream investment pathway, akin to the Qualified Domestic Institutional Investor (QDII) program.
