Posted inNewsSingapore

Singapore’s APS AM in PFM fund push

The firm now manages five onshore products in the mainland.

Singapore-headquartered APS Asset Management’s Shanghai-based wholly foreign-owned enterprise (WFOE) yesterday received regulatory approval from the Asset Management Association of China (AMAC) to launch the APS Shiying No 2 Private Security Investment Fund, according to the association’s records.

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.

In total, APS AM now manages five PFM products. Another product received a greenlight by the AMAC earlier this year, while the remaining three were approved in 2019.

The move follows after APS AM announced earlier this year that it will be liquidating its Asia-focused funds and only manage China-related strategies.

“We decided after much deliberation and discussion that going forward, we would focus solely on China,” the firm said in a statement at the time.

The firm has been managing China-focused strategies for nearly two decades. For example, it launched its first China A-share strategy to offshore investors in 2004, according to the statement.

According to the firm’s website, APS AM now offers long-only and selected long/short strategies focusing on the Greater China markets, including mainland China, Hong Kong, Taiwan and ADRs.

More PFM licence holders

Foreign asset managers have continued to be active in pursuing PFM licences. The latest one to receive the qualification was Seoul-based Hanwha Asset Management’s WFOE in Tianjin, which received its licence on Friday.

This year alone, eight other firms received the qualification, including Income PartnersRussell InvestmentsSchroder AdveqBEA Union InvestmentPower Corporation of CanadaParis-based Metori Capital Management, Edinburgh-based Baillie Gifford and Singapore-headquartered iFast Group.

Among all foreign managers with the PFM qualification, UBS Asset Management has the most number of PFM products with 16 funds, followed by Hong Kong-based Value Partners, which has 11 PFM funds, according to AMAC.

In total, around 30 foreign asset managers have been granted PFM licences, with at least 90 PFM products having been approved by the AMAC, according to its records.

Part of the Mark Allen Group.