Posted inBusiness moves

Baillie Gifford obtains QDLP license

Just after it set up its private fund management business last year.

Edinburgh-headquartered Baillie Gifford’s Shanghai-based wholly foreign-owned enterprise (WFOE) has received a qualified domestic limited partnership (QDLP) licence from the Asset Management Association of China (AMAC) on Monday, according to the association’s records.

Launched in 2013, the QDLP scheme allows licensed foreign asset managers to raise renminbi-denominated sums from qualified individual and institutions in China, with assigned quotas, to invest in offshore traditional and alternative investments. 

The firm’s QDLP WFOE was established in November last year, with registered capital of RMB 5m ($775,000), AMAC records show.

FSA sought more information from the firm, but it declined to comment about which offshore strategies it plans to offer as well as if it has received quotas.

The firm also runs a private fund management (PFM) business in the mainland. In November last year, it received regulatory approval to launch its first onshore product, the Baillie Gifford Zhiyuan Private Securities Investment Fund Phase 1, after obtaining a PFM license in September.

At the time, Baillie Gifford relocated three of its staff to Shanghai from Edinburgh to deepen existing relationships with Chinese companies. It has also been recruiting local staff for roles in operations, investment research, trading, compliance, business development and marketing.

Having a PFM licence enables foreign firms to offer locally domiciled private funds investing in the onshore market to qualified investors.

Other firms have also received the QDLP qualification last year, including Pimco Investment ManagementFranklin Templeton and UBP.

As of April last year, there were 28 foreign managers holding the licence offering at least 40 QDLP funds in China, according to a pervious Fleishman Hillard report.

Meanwhile, firms that are expected to launch QDLP products include Neuberger BermanOaktree CapitalEastspring InvestmentsAllianz Global Investors and UBP.

Part of the Mark Allen Group.