UBS Asset Management launches first onshore equity fund in China
- UBS Asset Management becomes the first foreign asset manager to launch an onshore equity fund for local investors in China
- The firm offers domestic investors a new way of investing in the A-share market based on its internationally tested investment processes
- The firm remains optimistic about the Chinese economy and the A-share market; sees strong long-term growth opportunities in blue-chip stocks and sector leaders
Shanghai, 20 November 2017 – UBS Asset Management ('UBS AM') today announced that UBS Asset Management (Shanghai) Limited, its wholly foreign-owned enterprise (WFOE), has launched the "UBS (CN) China Equity Private Fund Series 1". UBS Asset Management (Shanghai) Limited has completed its initial fund offering to investors and the fund is now officially established. It will start the fund registration process with the Asset Management Association of China (AMAC) soon.
UBS AM becomes the first foreign asset manager to launch an onshore equity fund in China, hard on the heels of becoming the first Qualified Domestic Limited Partner (QDLP) license-holder to receive a Private Fund Management (PFM) license in July 2017.
The fund will invest primarily in the A-share market and is available to both qualified institutional investors and high-net-worth individuals (HNWIs) based in China. Zizheng Wang, a portfolio manager at UBS Asset Management (Shanghai) Limited with more than seven years' experience in A-share investment and research, will manage the fund.
"From a long-term perspective, UBS AM sees sustainable growth in the Chinese economy and opportunities in the A-share market. Blue-chip stocks in the A-share market are fairly valued and leading companies across numerous sectors are enhancing their international competitiveness, leading to attractive investment opportunities.
This new fund will adhere to our experienced China Equity team's mature and robust growth investing philosophy and bottom-up investment process, as well as Asset Management's proprietary risk management system", said Wang.
Rene Buehlmann, Head of Asia Pacific at UBS Asset Management, added: "China is an important growth market for UBS AM and we are committed to bringing domestic clients a new range of services and offerings. Our new private fund, the first equity fund to be offered in China by a foreign manager, underscores that commitment. We aim to be a leading asset manager in China for both onshore and offshore investors."
Aries Tung, Head of Strategy and Business Development China, at UBS Asset Management, commented: "The track record of our offshore China equity investment products has given us the confidence to establish our onshore private fund. As China continues to liberalise its market, domestic investors are looking to both traditional and alternative assets for a broader investment universe and diverse opportunities.
UBS AM has a comprehensive plan to develop its business in the China market and will gradually roll out various asset classes, including fixed income and alternatives."
Notes to editors
UBS AM has been serving China investors since the 1990s and first entered the China market in 2005 through UBS SDIC Fund Management Co. Ltd., a joint venture with the State Development & Investment Corporation (SDIC), offering onshore mutual fund management and services. In 2011, UBS AM established UBS Asset Management (China) Limited as a wholly foreign-owned enterprise (WFOE) in Beijing, to provide investment management and advisory services for alternative investments.
In July 2017, UBS Asset Management was the first international manager with a Qualified Domestic Limited Partner (QDLP) quota to receive a Private Fund Management (PFM) license in China, broadening its capability to issue and manage onshore products.
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. The operational structure of the Group is comprised of our Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. UBS's strategy builds on the strengths of all of its businesses and focuses its efforts on areas in which it excels, while seeking to capitalize on the compelling growth prospects in the businesses and regions in which it operates, in order to generate attractive and sustainable returns for its shareholders. All of its businesses are capital-efficient and benefit from a strong competitive position in their targeted markets.
UBS is present in all major financial centers worldwide. It has offices in 52 countries, with about 34% of its employees working in the Americas, 34% in Switzerland, 18% in the rest of Europe, the Middle East and Africa and 14% in Asia Pacific. UBS Group AG employs approximately 61,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).