Fidelity International’s wholly foreign-owned enterprise (WFOE) in China, FIL Fund Management (China), completed fundraising for its first fixed income mutual fund product on 21 November.
The fund attracted RMB 5bn ($705m) from investors, including several financial institutions, according to Fidelity. The fund will invest in treasury bonds and some high-quality corporate bonds. Bank of Jiangsu provided custodian services.
“We are delighted to have completed the fundraising earlier than expected and with excellent results,” said Helen Huang, managing director, China, Fidelity International, said in a statement.
“The product has attracted strong interest from financial institutions, which recognises the confidence of Fidelity International’s brand heritage and research expertise among the most sophisticated investors in the market.”
The fund was mainly distributed through institutional investors, according to a Fidelity International spokesperson.
Fidelity International remains focused on building a successful business in China for the long term, leveraging the firm’s global and local expertise to support the growing investment needs of Chinese investors, said the US asset manager.
The asset manager entered the China market in 2004 and it now has three offices in Shanghai, Dalian and Beijing, employing over 1,900 staff.
In 2015, it set up a WFOE in Shanghai and two years later it became the first global asset manager to register with the Asset Management Association of China as a private fund management company
In late 2022, Fidelity International received final approval from the China Securities Regulatory Commission’s to operate a mutual fund business in mainland China.
Earlier this year, it launched its first mutual fund to retail investors in China. The IPO for the fund raised RMB 1.08bn for more than 27,000 investors.
“Looking ahead, we have a robust product pipeline for 2024 that covers equities, fixed income and multi-asset strategies. We will continue to expand our product set to provide Chinese investors with diversified investment solutions and services powered by our global and local expertise,” Huang added.