By Kristy Dorsey
Scottish global fund manager Baillie Gifford is continuing its push into the world’s second-largest economy having registered its new wholly-owned China unit to manage non-retail funds.
The Edinburgh-based investment house said the move will allow it to launch private funds to Chinese investors and build a broader client base in that country. Baillie Gifford currently has about £45 billion, or approximately 17 per cent of its total assets under management, invested in more than 100 companies based in mainland China.
The investment group behind the flagship Scottish Mortgage Trust opened its Shanghai office last year, with fund manager John MacDougall transferring from Edinburgh to China to head up the operation. Amy Wang was brought in as Baillie Gifford’s head of China from a similar role at rival Aberdeen Standard Investments.
Baillie Gifford said developing a local presence in China will allow it to deepen existing relationships with companies such as Alibaba, Tencent and Pinduoduo, while also forging more academic partnerships. The investment group is currently funding research into computational biology at Shanghai’s Tsinghua University.
“We have been investing for our clients in some of the most inspiring and influential Chinese companies for decades, providing long-term capital that enables them to innovate and grow for many years,” Mr MacDougall said. “That innovation is accelerating as Chinese entrepreneurs harness technology to create new business models, products and services for millions across China, transforming entire industries.
READ MORE: Scottish fund management giant reveals major HQ move
“We are building a team based in Shanghai to provide devoted, local expertise to boost our research into these rising Chinese companies. We hope that combining knowledge from the team on the ground with broader perspective from investment teams in Edinburgh will allow us to access the opportunities with greater insight, in the search to find China’s future winners.”
Baillie Gifford Investment Management (Shanghai) is now listed as a private securities fund manager with the Asset Management Association of China, and has also received a private fund manager (PFM) licence, which allows it to invest in China’s financial markets on behalf of Chinese institutions and affluent investors. As of March 2020, 26 foreign firms had received PFM licences for businesses in China.
Ms Wang said: “This is an exciting time in China as the authorities open up the financial services industry to welcome overseas investment managers and increase opportunities in its domestic shares market.”
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