Fidelity International’s Wholly Foreign-Owned Enterprise Obtains First Private Fund Management License in China
Beijing/Shanghai, 4 January 2017: Fidelity International announces today that its wholly foreign-owned enterprise (WFOE) in Shanghai has become the first global asset manager to register with the Asset Management Association of China (AMAC) as a private fund management company.
This qualification allows Fidelity International to create onshore investment products in China for eligible Chinese institutional and high net worth investors for the first time, and is crucial to the firm’s long-term China strategy. Established in September 2015 in Shanghai, Fidelity International’s WFOE, FIL Investment Management (Shanghai) Company Limited, is the first global asset management company to be awarded the qualification.
"This is a significant milestone to facilitate our expansion in the world’s second-largest economy. Thanks to the support from the China Securities Regulatory Commission (CSRC) and AMAC, we are honoured to be the first company to receive this private fund management business qualification,” said Mark Talbot, Managing Director, Asia Pacific, Fidelity International. “We have been operating in China since 2004, offering offshore capabilities to domestic institutional clients, and retail investors through partnering with banks under the Qualified Domestic Institutional Investor (QDII1) programme. This latest development expands our capabilities to support Chinese clients’ needs to invest both onshore and offshore."
“China is crucial to our global growth strategy, and as a privately-owned company, we are able to take a long-term approach to develop the best solutions for our clients to meet their investment and retirement needs,” Mr. Talbot added.
Fidelity International has representative offices in Shanghai and Beijing, as well as an operating center in Dalian, employing a total of over 400 staff in China. Fidelity International has a quota of US$1.2 billion under the Qualified Foreign Institutional Investor (QFII2) scheme, which is one of the largest amount held by any fund manager globally. The QFII quota allows Fidelity International to invest in Chinese capital markets.
“We firmly believe a local presence in China is critical not only to understand clients’ needs, but also to actively identify investment opportunities through our global research and investment capabilities,” said Daisy Ho, Managing Director, Asia Pacific ex Japan, Fidelity International. “We are set to offer onshore investors an opportunity to capture the long-term investment opportunities in China through our WFOE private fund management company.”
1/The Qualified Domestic Institutional Investor (QDII) system allows qualified domestic institutional investors, within a certain quota approved by the regulatory authorities, to invest in the overseas securities market.
2/ The Qualified Foreign Institutional Investor (QFII) Scheme is an arrangement that allows eligible institutional investors to invest in China's capital market.
About Fidelity International
Fidelity International offers world class investment solutions and retirement expertise. We are a privately owned, independent company, with the commitment and resources to provide the investment expertise, technology and service innovation needed to help our clients achieve their financial goals. We invest USD $290 billion globally on behalf of clients in Asia Pacific, Europe, the Middle East, and South America. Our clients range from pension funds, central banks, sovereign wealth funds, large corporates, financial institutions, insurers and wealth managers to private individuals. For institutional clients, we offer tailored investment solutions design and full-service asset management outsourcing. In addition to asset management, we provide investment administration and guidance services for workplace benefit schemes, advisers and individuals in several countries, with USD $85 billion in assets under administration.. (Data as at 30 September 2016)
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Fidelity is authorised to manage or distribute private investment fund products on a private placement basis, or to provide investment management service to persons resident in the mainland China solely through its Wholly Foreign Owned Enterprise in China - FIL Investment Management (Shanghai) Company Limited. The content of this material is intended to be viewed for informational purposes only and cannot be construed as an offer or solicitation to purchase any investment fund or product of Fidelity International, or an offer or solicitation to engage the investment management services of Fidelity International. This material may not be circulated or reproduced without the written consent of Fidelity International. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited.
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