UBS launches onshore equity fund for local investors in China
UBS Asset Management (Shanghai) a wholly foreign-owned enterprise (WFOE) in China of UBS Asset Management, has become what it says is the first foreign asset manager to launch an onshore equity fund for local investors living on the mainland.
The launch of UBS’s new fund, formally known as UBS (CN) China Equity Private Fund Series 1, comes four months after its Shangha-based subsidiary was awarded a private fund management license by Asset Management Association of China (AMAC).
The new fund will invest primarily in the A-share market in China, and is available to both qualified institutional investors and high-net-worth individuals based in China, UBS said in a statement.
The fund will be managed by Zizheng Wang, portfolio manager at UBS Asset Management (Shanghai), who comes to the role with more than seven years’ experience in A-share investment and research, according to UBS. He said the fund would use a “bottom-up investment process” while adhering to the asset manager’s “mature and robust growth investing philosophy”.
Rene Buehlmann, head of Asia Pacific at UBS Asset Management, added: “China is an important growth market for UBS AM, and we are committed to bringing domestic clients a new range of services and offerings.”
UBS is the latest in a growing number of European and other non-Mainland Chinese asset managers to launch mainland operations that target Chinese clients rather than Chinese investments on behalf of non-Chinese investors. As reported, both Singapore’s Fullerton Fund Management and the London-based Man Group announced in September that their respective organisations had been approved to receive a private fund management licence from the AMAC, while Atlanta-based Invesco announced its receipt of a PFM earlier this month.
A number of other assset managers, including Vanguard, AXA Investment Managers and Neuberger Berman have also established WFOEs in China this year.