Posted inChina

NB to roll out offshore strategy in China

This will be the third QDLP fund that the firm is launching in the mainland.

Neuberger Berman is preparing to launch its third qualified domestic limited partnership (QDLP) fund in China, records from the Asset Management Association of China (AMAC) show.

The firm’s Shanghai-based wholly foreign-owned subsidiary received approval from the association to roll out the Neuberger Berman Overseas Equity Investment No 3 Private Fund.

The QDLP scheme allows foreign managers to raise money in China from qualified investors (HNWIs and institutions), with assigned quotas, to invest in offshore traditional and alternative investments, including overseas equity and bond funds, hedge funds and property.

The latest approval comes after the firm received a greenlight in October to launch its second QDLP product. The firm rolled out its first offshore strategy in 2018, AMAC records show.

FSA sought more information from NB, but it declined to provide more details about the new strategy, as well as how much quotas it has.

On top of its QDLP business, the firm also runs a  private fund management (PFM) business in the mainland. In total, it manages seven PFM product, the most recent one being the China Resources SZITIC Trust – Neuberger Berman China Equity No 1 Collective Capital Trust Plan Fund, which was approved in June last year.

A PFM licence enables foreign entities to develop and sell funds investing in onshore assets to domestic qualified investors, which include institutional and high net worth investors.

Besides China’s private market, the firm is also targeting China’s massive RMB 19.9trn ($3.1trn) public mutual fund industry. In April last year, the firm filed an application with the China Securities Regulatory Commission (CSRC) to apply for a mutual fund license. CSRC record shows that it is still awaiting regulatory approval.

Part of the Mark Allen Group.