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Neuberger Berman readies another onshore fund

Onshore fund launches continue, with NB receiving approval for its fifth local fund for sale via the private fund management (PFM) channel.

The New York-based asset manager recently has been authorised for the Neuberger Berman Quantitative Select No 1 Private Security Investment Fund, according to Asset Management Association of China (Amac).

The product was registered with the Amac on 19 December last year and the firm now manages five PFM products, with four of them authorised in 2019, Amac records show. The firm’s first onshore product was registered in 2018 and is managed by Shanghai-based Peter Ru, FSA previously reported.

A PFM licence allows foreign managers to develop and sell funds investing in onshore assets to domestic qualified investors.

NB’s wholly foreign-owned enterprise (WFOE) in Shanghai was registered with the Amac in 2017, according to its records.

The WFOE 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 activity increasing

There are around two dozen foreign PFM licence holders that have launched 63 onshore funds as of 3 January this year, according to Amac records.

Among them, UBS Asset Management had the most PFM products 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.

Nomura Asset Management, UBS AM and Fullerton Fund Management received approval from the Amac for their onshore funds, in December last year.

Moreover, earlier in November, UBS AM, Value Partners and Winton Capital were all authorised for new PFM products.

In the same month, Barings also debuted its first PFM product, the China A-share Private Securities Investment Fund No 1, joining the growing onshore competition, FSA previously reported.

Furthermore, 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.

Part of the Mark Allen Group.