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Man Group quant arm nabs QFII license

In China, the London-headquartered firm manages two PFM and two QDLP products.

Man AHL, Man Group’s quantitative investment business, has received a qualified foreign institutional investor (QFII) license in China, according to a statement from the firm. Having a QFII licence enables offshore firms to invest in China’s onshore markets.

The licence will allow Man AHL, which manages $36.4bn in global assets, to have greater access to China’s domestic markets, complementing other existing inbound routes such as the Stock Connect and the China Interbank Bond Market access, the firm said.

The move comes after China made enhancements to the QFII and RQFII (denominated in renminbi) schemes. In June, Chinese regulators abolished the quota restrictions in both programmes. Qualified foreign investors only need to go through a registration-based process to transfer money into the country.

Chinese authorities will also combine the QFII and RQFII schemes into one unified programme in November. The combined inbound scheme will not only simplify the application process but also expand its investment scope, which will include private investment funds, bond repurchase agreements, financial and commodity futures and options.

FSA sought more information from Man Group, including whether or not it has plans of launching an offshore China A-share strategy, but it was not able to provide more details in time for publication.

In China, Man AHL began to advise onshore portfolios in 2014 and launched its first private fund management (PFM) strategy in 2017, managed by Shanghai-based investment professionals, according to the statement.

In total, Man Group in China has two PFM funds and two qualified domestic limited partnership (QDLP) offerings. QDLP funds provide domestic qualified investors exposure to offshore traditional and alternative investments.

Globally, Man Group manages $108.3bn in client assets, according to the statement.

Part of the Mark Allen Group.