The Man Alternative Risk Premia Private Overseas Securities Investment Fund has recently received approval from the Asset Management Association of China (Amac) to raise money from domestic investors, according to the regulator’s website.
The product has a quantitative multi-factor investment process. This is the firm’s second qualified domestic limited partnership (QDLP) product; the first was registered in 2016, Amac records show.
London-headquartered Man Group first established its office in China in 2012, and it was one of the first firms to be granted quota to raise funds from domestic investors to invest offshore through the QDLP scheme.
A QDLP licence allows foreign managers to raise money domestically to invest in offshore traditional and alternative investments, including overseas equity and bond funds, hedge funds and real estate, within allocated quotas.
The firm also manages two private fund management (PFM) products.
The first PFM product, the Man Hongliang No. 1 Private Fund, was launched in 2017 and invests in liquid onshore markets, focusing on listed futures, including agricultural commodities, industrial commodities, bonds, metals, energy and stock indices.
Man Group registered its second PFM product in May, 2018, FSA previously reported.
The PFM licence allows foreign fund managers to invest in a portfolio of onshore assets and permits the product’s sale to a maximum of 200 domestic qualified investors.
Man Group manages $112.7bn, with institutional investors contributing 84% of the group’s funds under management, according to the firm’s website.
FSA contacted the firm about the latest QDLP fund, but it was unable to provide more details in time for publication.
Growing competition
Separately, the UBS China Balanced Multi-asset Private Securities Investment Fund No. 1 received approval from Amac, according to the regulator’s record.
FSA contacted the firm and it was also unable to provide more details about the fund in time for publication.
However, the launch follows the approval of another PFM product last month, the UBS China Yufeng Bond Strategy No. 1 Private Security Investment Fund.
The multi-asset fund will be the fourth onshore fund launch this year, and the seventh in total, by UBS Asset Management (Shanghai), the wholly foreign owned enterprise (WFOE) of UBS Asset Management (UBS AM). It registered its first PFM in 2017, according to the regulator’s record.
UBS’s Shanghai WFOE has 32 staff and capital of $30.5m, according to Z-Ben Advisors and the firm also holds a QDLP scheme quota in mainland China.
In July this year, the firm registered the first fund of private securities funds in mainland China.
As of 9 August this year, 21 foreign firms hold a PFM licence and collectively they have launched 46 products with RMB 5.4bn ($756m) in assets, according to a statement from the Amac.
Hong-Kong based Value Parters also manages seven PFM products, which is the largest number by far.
UK-based Schroders runs six onshore funds, slightly behind UBS AM and Value Partners. The firm’s second FOF onshore product, the Schroder China Diversified Income No. 1 FOF Private Security Investment Fund received approval from the regulator last Monday.
British quant fund manager Winton Capital also runs six PFM products.
