The New York-based asset manager has registered the Galaxy Capital – Neuberger Berman Xinhuai No 1 Collective Asset Management Plan Fund, according to Asset Management Association of China (Amac).
Neuberger Berman will introduce the fund using its advisory licence in collaboration with mainland firm Galaxy Capital.
An advisory licence enables a foreign manager to advise domestic fund management firms and distributors on specific investment products.
Acting as the asset manger, Galaxy Capital said in a statement that the fund was established on 8 January this year.
NB now manages six products via its private fund management (PFM) licence, which permits foreign managers to develop and sell funds investing in onshore assets to domestic investors. Four of the firm’s funds were authorised in 2019, Amac records show.
Last month, the firm registered the Neuberger Berman Quantitative Select No 1 Private Security Investment Fund, FSA reported earlier.
NB’s WFOE structure in Shanghai was registered with the Amac in 2017, according to its records. It has 25 staff and registered capital of $2m, according to Z-Ben Advisors.
FSA contacted the firm for more information, but it was unable to provide more details in time for publication.
Onshore competitors
There are around two dozen foreign PFM licence holders that have launched 64 onshore funds as of 16 January this year, according to Amac records.
Among them, UBS Asset Management leads the pack with nine, followed by Value Partners which manages eight funds and British quant fund manager Winton Capital which runs seven onshore products, Amac records show.
Hong Kong-based BEA Union Investment’s WFOE in Shenzhen received PFM licence from the Amac earlier this month. The firm now has six months to launch an onshore fund.
QDLP
Separately, Neuberger Berman also has one qualified domestic limited partnership (QDLP) product, the Overseas Equity Investment No 1 Private Fund, which was registered with the Amac in 2018, the record shows.
The QDLP programme allows foreign managers to raise money in China, with assigned quotas, to invest in offshore traditional and alternative investments, including overseas equity and bond funds, hedge funds and property.
Most recently, Singapore-based Eastspring Investments and Allianz Global Investors have been approved for QDLP products.
China has been cautious about issuing QDLP quota because the programme takes money offshore and capital outflows could impact the value of the RMB.
