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NB to launch onshore China fund

Neuberger Berman's wholly-owned foreign enterprise (WFOE) in Shanghai has obtained a private fund management (PFM) licence from the Asset Management Association of China and has six months to launch a product.
View of the splendid night view of downtown Shanghai.

The licence allows the firm to launch onshore fund products to China’s qualified investors, which include domestic institutions and high net worth individuals.

Because it received licence approval, NB is now facing a six-month deadline for offering a fund in the market. A Hong Kong-based spokeswoman for the firm said it would be a fixed income fund.

The firm has hired Peter Ru this month as a Shanghai-based senior portfolio manager. He will be responsible for developing China fixed income capabilities, according to a statement from the firm.

In July, NB announced that it hired Yu Bin in May and four research analysts for its China equity capabilities, according to a separate announcement. Yu and the analysts all come from Cloudridge Capital, an investment management firm he founded in 2014.

Yu’s team, which is based in Hong Kong and Beijing, will continue to manage their Cloudridge private fund strategy, according to the statement.

More PFM licences

NB joins the slowly growing number of WFOEs that have obtained PFM licences. The latest firms to receive the licence are Invesco and Value Partners, both announced last week. Other fund managers that have the licence are Fullerton Fund Management, Man Investments, Fidelity International and UBS Asset Management.

There are now seven firms out of the 22 IM WFOEs that have obtained a PFM licence. Miao Hui, a senior analyst at Cerulli Associates, said in a report that the registration process for obtaining the licence will be smoother for managers now compared to last year, given the number of successful cases.

Only Fidelity has launched a product in China. It plans to roll out a second fund later this year.

UBS Asset Management is expected to make an announcement of its fund launch soon, René Buehlmann, the firm’s Asia-Pacific head and global head for wholesale client coverage, said in a media briefing yesterday.

Part of the Mark Allen Group.