UBS to launch China’s first foreign fund of funds
Jul 16, 2019 (China Knowledge) - UBS Asset Management unit has announced to launch the first Foreign Fund of Funds (FOF) in mainland China. The FOF will invest in selected hedge funds to defuse systemic risks and enhance returns. The fund has been submitted to the Asset Management Association of China for filing.
China's securities regulator on Friday gave approval for UBS Group to hold the majority stake in its securities joint venture. The company has become the first foreign-funded brokerage approved by the securities regulator since the rules on foreign investment in brokerages were implemented, according to the CSRC.
The UBS FOF will use core and tactical investment strategies, which aims to achieve long-term capital appreciation, to deal with the volatile mainland stock market. UBS is anticipating future demand in China's asset management market. The launch also shows the company's research, execution and distribution capabilities in China, said Raymond Yin, the firm's head of the Asia Pacific and China.
The Zurich-headquartered firm received a private fund management license in China back in July 2017 and launched its first onshore equity fund. “Growing our China business is a key element of our strategy. The further opening up of China's financial sector represents great opportunities for our wealth management, investment bank, and asset management businesses,” UBS Chief Executive Sergio Ermotti said in a statement.
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