UBS Asset Management’s wholly foreign-owned enterprise, UBS Asset Management (Shanghai) Limited, has been granted a Private Fund Management (PFM) license from the Asset Management Association of China (AMAC).
The license allows the WFOE to offer onshore fixed income, equity, and multi-asset private funds to both institutional and high net worth investors in China.
“China is a key growth market for UBS Asset Management. Our goal is to be a leading asset manager in China for both onshore and offshore investors and a strong partner to Chinese clients investing overseas,” says Ulrich Koerner, President of UBS Asset Management.
“UBS Asset Management is the first international manager with a QDLP quota to receive a PFM license in China’s onshore market. Securing the license expands the breadth and depth of our domestic offering, complements our offshore capabilities and, importantly, demonstrates our continued support of China in its efforts to open its capital markets to the world,” says Rene Buehlmann, Group Managing Director, Head Asia Pacific at UBS Asset Management. “UBS Asset Management has been serving China investors since the 1990s. With the addition of the PFM license, augmented by our other platforms in China, we can provide a broad range of services to onshore and global clients. It also allows us to work more closely with subsidiaries of global firms in China to meet their domestic investment needs.”
In 2005, UBS AM entered into a joint venture with the State Development & Investment Corporation (SDIC), to form UBS SDIC Fund Management Co Ltd, which offers onshore mutual funds. In addition, in 2011, UBS Asset Management (China) Limited was established as WFOE in Beijing to provide investment management and advisory services for alternative investment.
“With the continued liberalisation of China’s economy, domestic investors can be expected to seek to diversify their investments across a broad and expanding range of traditional and alternative asset classes and geographies. UBS is well positioned to help them build portfolios which not only have the potential to generate reasonable returns but also diversify downside risk,” says Aries Tung, Managing Director, Head of Strategy and Business Development, China, at UBS Asset Management. “We are committed to establishing a market-leading private fund platform in China supported by local infrastructure, best-in-class client services, and rigorous risk management.”