Edinburgh-headquartered Baillie Gifford has officially opened its office in Shanghai after receiving its private fund management (PFM) licence earlier this month, according to a statement from the firm.
A PFM licence enables foreign entities to develop and sell funds investing in onshore assets to domestic qualified investors, which include institutional and high net worth individuals.
“Being registered as a PFM allows us to build a client base of Chinese investors who share our belief that taking a long-term approach, investing over five to 10 years or more, will support the growth of Chinese companies and produce strong, consistent investment returns,” Amy Wang, head of China and general manager of the firm’s wholly foreign-owned enterprise (WFOE), said in the statement.
Wang was hired last year to build the team in Shanghai and develop client relationships. She was from Aberdeen Standard Investments, where she was head of China and the general manager for the WFOE for two years.
At ASI, Wang built the China team and was responsible for obtaining the firm’s PFM and QDLP licences and the launching of two onshore funds.
Betty Mao has replaced Wang as ASI’s head of China and general manager for its WFOE, according to a Hong Kong-based spokeswoman of the firm. Mao was previously the firm’s head of operations in Shanghai.
Team expansion
Until recently, Baillie Gifford’s global investment teams have all been based in Edinburgh. But with its new China business, it has relocated three of its staff to Shanghai to deepen existing relationships with Chinese companies.
Investment manager John MacDougall, who joined Baillie Gifford in 2000 and has been a partner since 2016, has relocated to Shanghai and assumed the role of chairman and chief strategy officer for the China business, according to the statement.
Linda Lin, who grew up in Chongqing, has returned to China as head of investment research after spending six years with Baillie Gifford in Edinburgh. In addition, investment manager Rio Tu, who was originally from Hubei province, was also relocated to Shanghai after spending five years in the firm’s headquarters.
Baillie Gifford has also been recruiting local people for roles in operations, investment research, trading, compliance, business development and marketing, according to the statement.
“We have been investing for our clients in some of the most inspiring and influential Chinese companies for decades, providing long-term capital that enables them to innovate and grow for many years,” MacDougall said.
“That innovation is accelerating as Chinese entrepreneurs harness technology to create new business models, products and services. We are building a team based in Shanghai to provide devoted, local expertise to boost our research into these rising companies,” he added.
The firm launched its first China Fund in 2008 for global investors and has invested in at least 100 companies based in the mainland, according to the statement. The firm manages around £45bn ($57.19bn) in Chinese assets, accounting for 17% of its total AUM.
It added that the firm has built relationships with owners at Alibaba, Ant Group, Meituan, NIO, Pinduoduo, Ping An Good Doctor, Tal Education and Tencent – providing funding to some of these companies when they were still private.
