Fidelity International has launched two new private funds in China for high-net-worth-individuals and institutional investors via its wholly foreign-owned enterprise.
The initiative includes the company’s first ever A-Share private equity fund, Fidelity China Equity No. 1 Private Fund, alongside a fixed income fund that builds on the firm’s existing offering. The launch comes after the US asset management giant launched its first fixed income fund for Chinese HNWIs in May last year.
Fidelity said: “The equity fund is its first onshore equity fund in China, since obtaining the private fund management qualification from the Asset Management Association of China in January 2017.”
It will primarily invest in China’s A-share market, and be managed by the company’s Shanghai-based equities portfolio manager, Lynda Zhou. According to Zhou, A-shares will be included in MSCI indices in June 2018, attracting more attention from global investors.
Zhou said that rising participation of foreign institutional investors will drive the market going forward: “China’s domestic A-share market is the second largest stock market in the world with a vast array of stock picking opportunities.
“We are using a long-term fundamental investment approach to identify unrecognised investment value within the A-share market,” she explained.
Fidelity owns three private funds in China, and manages assets worth $411bn for clients in Asia, Europe, the Middle East and South America.
Fidelity International is headquartered in London and manages £72.7bn in assets under administration as of 30 September 2017.