Pictet Asset Management (Pictet AM), has boosted its overall China strategy with the opening of a wholly foreign-owned enterprise (WFOE) in Shanghai.
The asset management arm of Geneva-based independent Pictet Group believes that having an onshore presence will be complementary to its investment goals in the region.
Following its registration with the Asset Management Association of China (AMAC), the Shanghai WFOE will be allowed to raise funds from domestic mainland investors to invest in the firm’s offshore strategies under the Qualified Domestic Limited Partners (QDLP) programme.
Pictet AM has been investing onshore for global clients via several programmes, such as the Renminbi Qualified Foreign Institutional Investor (RQFII) programme, Shanghai-Hong Kong Stock Connect, Bond Connect and China Interbank Bond Market (CIBM) Direct Access.
The firm has been cooperating with onshore global banks under the Qualified Domestic Institutional Investor (QDII) scheme.
In July, Pictet AM launched its first northbound fund – Pictet Strategic Income under the Mutual Recognition of Funds (MRF) scheme.
Renaud de Planta, senior partner of the Pictet Group said, “The expansion into China represents a significant milestone in the 215 year history of Pictet. We are encouraged by the prospect of the country’s asset management industry, which has developed into one of the world’s biggest and fastest-growing, thanks to China’s economic strength and its rate of capital accumulation. The global macro environment is not without challenges but given the Group’s financial strength and our long-term commitment to the China market, we remain confident that now is the time for us to take this important step.”
Ms. Junjie Watkins, Pictet AM’s chief executive officer, Asia ex Japan, added, “We look forward to introducing our global expertise and product offering to onshore investors, who are increasingly receptive to diversifying their investments as market uncertainties persist. We will begin our China onshore operation with a focus on cross-border investment before gradually developing local investment capabilities.”
