Pictet Asset Management (“Pictet AM”), the asset management arm of Geneva-based independent Pictet Group, is announcing the opening of a wholly foreign-owned enterprise (WFOE) in Shanghai.
Upon the 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.
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,” he added.
Ms. Junjie Watkins, Pictet AM’s CEO, Asia ex Japan, said, “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.”
Having an onshore presence will be complementary to Pictet AM’s overall China strategy. 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 Group , Bond Connect Group 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.
