Published by Fund Selector Asia – 21st Jan 2019
Only a handful of foreign managers have launched multiple products in China’s private fund market.
Fidelity’s Shanghai-based wholly foreign-owned enterprise (WFOE) has launched the China Bond Advantage No.1 Private Fund in the mainland last week, according to records from the Asset Management Association of China (Amac).
The firm’s WFOE is registered as a private fund manager (PFM) with the Amac, which enables the firm to offer onshore funds to China’s qualified investors.
The new product adds to three products that the firm previously launched in the mainland, the latest being an equity fund that was rolled out in January last year. The other two funds are bond funds, which are managed by portfolio manager Freddy Wong.
Fidelity is the pioneer in adopting the investment management WFOE structure to enter China’s domestic asset management industry. It was among the first batch of foreign firms to establish a WFOE in Shanghai in 2015 and was also the first foreign manager to obtain a PFM licence from the AMAC in 2017. The firm has around 30 staff in China, with the majority being investment professionals.
In terms of fund launches, Fidelity and Value Partners have rolled out the most number of funds under the PFM route, with each having four products.
As of end-October, at least 15 foreign managers have PFM licences in China, but only four firms have launched more than one onshore product. They include UBS Asset Management and Man Group, according to AMAC data.
