Value Partners has partnered with Beijing-headquartered China Foreign Economy Trade Trust Company (FOTIC) to launch a private fund to qualified investors in the mainland.
Value Partners’s wholly foreign-owned enterprise (WFOE) in Shanghai received regulatory approval last week to launch the Foreign Trade Trust – Value Partners Shanghai Hong Kong Shenzhen Securities Investment Collective Capital Trust Fund via Value Partners’ private fund management (PFM) licence, records from the Asset Management Association of China (AMAC) show.
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.
FOTIC is an asset and wealth management firm wholly-owned by Sinochem Group, according to the firm’s website. In 2011, FOTIC launched Wuxing Wealth, which is the firm’s wealth management brand that provides asset allocation services for HNWIs in China.
AMAC records show that Value Partners will act as an advisor for the new PFM strategy.
FSA sought more information from Value Partners, but the firm declined to provide more details.
The move comes after Value Partners obtained an investment advisory qualification from the AMAC in February last year, which enables firms to offer investment advisory services on issued private fund products to securities and futures firms, banks, insurers, trusts and wealth management companies.
Other foreign managers that have partnered with domestic companies to act in an advisory capacity include APS Asset Management (which also partnered with Fotic), Neuberger Berman and Winton Capital.
Other foreign PFM licence holders that hold the advisory qualification include UBS AM, Aberdeen Standard Investments, Blackrock, Bridgewater Associates, Fullerton Fund Management and Mirae Asset Global Investments, AMAC records show.
In total, Value Partners manages 12 PFM products.
AZIMUT, MIRAE ASSET
Milan-based Azimut Group and Korea’s Mirae Asset Global Investments also received AMAC approval last week to roll out PFM funds.
Azimut will be launching the Anzhongxin Mix No 5 Private Security Investment Fund, which will be the firm’s seventh PFM fund.
Meanwhile, the Korean firm will be rolling out the Mirae Asset China Benefit Stable No 1 Private Securities Investment Fund – the firm’s fourth PFM product.
In total, there are around 30 foreign asset managers holding PFM licences managing at least 110 products in China.