Pictet Asset Management (Pictet AM) said today that its wholly foreign-owned enterprise (WFOE), Pictet Private Fund Management (Shanghai) Limited, has launched its second qualified domestic limited partnership (QDLP) product for qualified investors.
The Shanghai-based QDLP programme allows global asset managers to raise funds from domestic investors in China to invest in overseas traditional and alternative assets.
The product, named the Pictet Global Sustainable Credit No.1 Private Securities Fund, has received approval from the Asset Management Association of China (AMAC).
The fund, classified as an SFDR Article 9 fund, is a global investment-grade credit strategy. It focuses on investing in corporate bonds issued by companies with strong financial and sustainability credentials, predominantly in the US and Europe, including but not limited to ESG-labelled bonds, according to a statement by the Swiss asset manager.
Pictet AM’s global sustainable credit investment team comprises seasoned specialists and the core investment managers have an average of 24 years of experience in credit investing.
Junjie Watkins (pictured), chief executive officer, Asia ex Japan, at Pictet AM said: “The launch of Pictet AM’s second onshore private fund in China reflects our unwavering commitment to delivering established global strategies with long track record and extensive expertise to Chinese investors.”
“As interest rate curves are expected to normalise and global economic growth to moderate, high-quality developed credit continues to be a solid asset class to investors seeking investments with relatively low volatility and robust long-term returns,”
Pictet AM first opened its Shanghai WFOE in September 2020, successfully registered as a QDLP Manager with AMAC in August 2021 and announced the launch of the first QDLP product in September 2021.
Pictet AM also taps China onshore investors for offshore investments via several cross-border investment programmes, including the mutual recognition of funds (MRF) scheme between mainland China and Hong Kong, cross-boundary wealth management connect (WMC), and qualified domestic institutional investor (QDII), in addition to the QDLP programme.
In 2020, Pictet AM launched its first northbound fund under the MRF scheme – a global dynamic multi-asset strategy. In 2021, the firm participated in the WMC, in collaboration with various partners, to offer domestic Chinese investors its Hong Kong-domiciled strategies.
