Schroders launches 1st private fund on Chinese mainland

British asset management company Schroders Plc has launched its first private fund in the Chinese mainland, which will primarily invest in the A-share market, the company said on Wednesday.

The fund's launch came after Schroders received the qualification of private securities investment fund manager status from the Asset Management Association of China last December, as Chinese regulators have granted foreign asset managers greater access to the mainland's financial market.

The fund will be managed by Schroder Investment Management (Shanghai) Ltd, a wholly foreign-owned enterprise in China.

The development reflected Schroders' effort of creating investment strategies that serve the investment needs of high-net-worth individuals and institutional investors on the mainland, the company said.

“The launch of our first domestic private fund marks a major milestone in Schroder’s presence in the Chinese mainland. This is a solid demonstration of our years of dedication to the market, from providing relevant investment solutions for local investors to nurturing a strong team of local research and investment talent," said Lieven Debruyne, CEO of Schroders Asia, in a press release.

"We remain as committed as ever in developing insights and relevant investment solutions to address the needs of Chinese mainland investors, and look to accelerate our business development this year and beyond to further broaden our footprint,” Debruyne said.

Schroders' first mainland private fund is managed by Jack Lee, the company's head of China A-share research, with a supporting team consisting of 23 on-the-ground fund managers and analysts across China, who on average have 15 years of investment experience, according to the company.

“On-the-ground expertise is essential when investing in China A-shares," said David Guo, head of Chinese Business at Schroders. "We have invested heavily in our research resources over the years, and are committed to expanding our professional research capabilities in China."