Schroders’ investment management wholly-foreign owned enterprise (IM WFOE) has launched three onshore funds in China, according to a statement from the firm.
They are the Schroder PFM China Equity Alpha Youxun No.1, the PFM China Credit Bond No. 1 and the PFM China Macro Bond No. 1 funds.
In total, the firm now manages four onshore products in China. It first launched an equity fund – the PFM China Total Return Zhihui No. 1 Fund – at the beginning of 2018.
The launch of the new products follows the appointment Shanghai-based fund manager Shan Kun in July last year, who is focused on onshore Chinese government and policy bank bonds.
In total, the firm’s IM WFOE employs 30 people, which include equity, fixed income and multi-asset teams, according to the statement.
Schroders now joins the likes of Fidelity and Value Partners, which have so far launched the most number of onshore funds in the mainland. Like Schroders, the two firms each manage four products in China. Only a few firms have launched more than one product, including UBS Asset Management and Man Group.
In total, there are around 18 foreign firms with a private fund management (PFM) licence, which enables them to launch onshore products to qualified investors, which include institutions and high net worth individuals. Of the 18, 14 have launched at least 30 onshore funds for qualified investors.
Besides its PFM business, Schroders also has a joint venture fund management firm with Bank of Communications, BOCOM Schroders. Last year, it also launched an Asia-themed multi-asset income fund in China via the Hong Kong-China Mutual Recognition of Fund (MRF) scheme, according to the statement.
Digital capabilities
Separately, the firm noted that it has also enhanced its digital capabilities in China to engage more with investors.
Apart from making its products available on online fund platforms, Schroders set up social media accounts on WeChat and on Cai Fu Hao, which is Ant Fortune’s online fund supermarket, to provide users with investor education, according to the statement.
Schroders also partnered with Ant Fortune to launch its InvestIQ test, a digital tool that analyses a user’s investment personality, which should help them to make more informed investment decisions.
Outside of China, Schroders partnered with Citibank last month to launch the tool for the bank’s wealth management clients in Singapore, Malaysia, United Arab Emirates, the UK, Thailand, Indonesia, Philippines and Poland, according to a separate statement. The tool will be gradually rolled out in more Asian markets in the second half of 2019.
