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Baillie Gifford debuts onshore fund in China

Singapore's APS AM is also launching more PFM funds in the mainland.

Baillie Gifford’s wholly foreign-owned enterprise (WFOE) in Shanghai has received regulatory approval last week to launch a private fund management (PFM) product in the mainland, according to records from the Asset Management Association of China (AMAC).

The Baillie Gifford Zhiyuan Private Securities Investment Fund Phase 1 will be the firm’s first PFM fund. The Edinburg-headquartered firm is one of the newer entrants in China’s PFM market, after receiving its PFM licence in September.

A PFM licence enables foreign entities to develop and sell onshore funds investing in the domestic market to qualified investors in the mainland, which include institutional and high net worth individuals.

FSA sought more information from the firm, it declined to comment.

“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 WFOE, said previously in a statement.

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.

APS Asset Management

Separately, Singapore-headquartered APS Asset Management’s WFOE in Shanghai also received regulatory approval to launch the APS Growth No 1 Private Securities Investment Fund, according to AMAC.

The firm has been active in launching PFM funds in the mainland. This year alone, it received AMAC approval to launch three other PFM products. In total, it manages seven onshore funds.

APS AM announced earlier this year that it will be liquidating its Asia-focused funds and only manage China-related strategies.

“We decided after much deliberation and discussion that going forward, we would focus solely on China,” the firm said in a statement at the time.

In total, around 30 foreign asset managers have been granted PFM licences, with almost 100 PFM products having been approved by the AMAC, its records show.

Part of the Mark Allen Group.