Fullerton Fund Management, a Singapore-based subsidiary of Temasek Holdings with an outpost in Shanghai, has been approved to receive a private fund management licence (PFM licence) from the Asset Management Association of China.
With the PFM approval, Fullerton is now able to offer onshore investment products to institutional and high net worth investors in China, Fullerton said in a statement.
In its statement, Fullerton noted that it is the first Asian fund house to successfully register its already-existing wholly foreign-owned enterprise, or WFOE, with the AMAC as a private fund management company. It first established its China footprint in 2007, with a representative office in Shanghai, housing onshore equity analysts.
As reported here on Friday, the Shanghai-based, wholly foreign-owned enterprise of the London-headquartered, LSE-listed Man Group asset management company has also been awarded a private fund management license by the AMAC.
The awarding of the private fund management licenses comes as western asset managers seek access to the relatively-untapped Chinese market, even as Chinese authorities seek to stem the flow of Chinese wealth overseas.
Fidelity International became the first Western asset manager to recieve a PFM licence in January, and later launched a fund aimed at the onshore Chinese bond market. UBS Asset Management has also received a PFM licence, and is reported to be planning to launch a China fund later this year.
In its statement, Fullerton said it had expanded its China team to 11 from six employees last year, and that it planned further investment in its local office and to “grow the number of employees to cover investment, sales, trading, compliance and management functions”.
Fullerton reported asset under management S$17bn (US$12.7bn, £9.6bn) at the end of June. It calls itself “an Asian and emerging market specialist” that invests via equities, fixed income, multi-asset and alternatives.
Prior to its incorporation in Singapore in 2003 as a Temasek subsidiary, its investment team operated for 14 years as Temasek’s internal fund management division, managing its capital resources.
In addition to its base in Singapore and its outpost in Shanghai, Fullerton maintains offices in the UK and Japan.