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Fidelity completes fundraising for debut China product

Fidelity is following in the footsteps of other asset managers like BlackRock and Neuberger Berman in launching its first mutual fund in mainland China.
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Fidelity International has completed the initial fundraising period for its first mutual fund product in mainland China.

The product is the Fidelity Pedigree 6-Month Holding Period Equity Fund, which is managed by Lynda Zhou. It raised Rmb1.08bn ($156m) from more than 27,000 investors during its IPO, making it the third largest IPO among equity funds launched in China since the start of the year.

The fund was distributed through a range of partners including Bank of China, Citic Securities, Ant Fortune and Eastmoney Tiantian.

“The successful launch of our first retail fund marks another important milestone for Fidelity International’s China business,” said Rajeev Mittal, managing director for Asia Pacific ex-Japan at Fidelity.

“Looking ahead, we have a strong product pipeline for 2023 and beyond, with a fixed income product due to launch in the coming months. We will continue to leverage the best of Fidelity International’s extensive global and local experience and capabilities.”

The move by Fidelity comes as a number of global asset managers are launching retail funds in mainland China for the first time. Last month, Neuberger Berman raised Rmb4.1bn for its debut fixed-income fund.

BlackRock was the first out of the gates by some stretch and raised Rmb6.7bn for its first mutual fund in mainland China in 2021.

Part of the Mark Allen Group.