Posted inChina

UBS AM adds MRF in China business strategy

On top of its JV, PFM and QDLP businesses.

UBS Asset Management has filed applications with the China Securities Regulatory Commission (CSRC) to sell three of its Hong Kong-domiciled products in the mainland via the Hong Kong-China Mutual Recognition of Funds (MRF) scheme, according to the regulator’s records.

The products are the China High Yield Bond (USD) Fund, the China Opportunity Equity (USD) Fund, and the Systematic Allocation Portfolio Medium Classic (USD) Fund.

This is the first time that UBS AM filed applications to join the MRF scheme, CSRC records show.

The MRF between mainland China and Hong Kong is a scheme jointly launched by the CSRC and Hong Kong’s Securities and Futures Commission (SFC) in July 2015. Under the scheme, eligible mainland and Hong Kong funds can be distributed in each other’s markets.

“The MRF is an important channel where it opens up long-term opportunities for us to access mainland Chinese investors,” a spokeswoman for the firm told FSA.

Without elaborating, she added that UBS AM has plans to apply more products under the MRF scheme.

The firm has another Hong Kong-domiciled fund, the Credit Income Opportunity Fund, which was launched in February last year, according to data from FE Fundinfo.

BEA Union Investment also recently filed applications for two fixed income funds under the MRF. When approved, the firm will have four products distributed under the MRF scheme.

Seven other funds are still awaiting regulatory approval, which include funds managed by Gao Teng  Global Asset Management, China Asset Management, Fidelity, E Fund ManagementIncome Partners and BOCHK Asset Management, CSRC records show.


The move into the MRF will expand UBS AM’s reach in China.

Currently, the firm already caters qualified domestic investors (HNWIs and institutions) with onshore and offshore strategies via its private fund management (PFM) and qualified domestic limited partnership (QDLP) businesses, respectively.

The firm has around 17 PFM funds in China and one QDLP product, according to records from the Asset Management Association of China (AMAC).

UBS AM also offers public funds to retail investors in China via its mutual fund management joint venture, UBS SDIC Fund Management, in which UBS has a 49% stake.

Part of the Mark Allen Group.