PCC subsidiary gains private fund management license in China

Power Corporation of Canada’s (PCC) wholly foreign-owned enterprise, Power Sagard (Shanghai) Investment Management (PSSIM) has reportedly been approved to receive a private fund management (PFM) license from the Asset Management Association of China (AMAC).

By receiving a PFM license, PSSIM will be allowed to develop and sell funds investing in onshore assets to domestic qualified investors, according to an article by International Adviser. The umbrella of ‘domestic qualified investors’ includes both HNWIs and institutional investors.

PSSIM was reportedly established in Q2 2019. PCC also operates in the Chinese market through Power Pacific Investment Management (PPIM), a Shanghai and Montreal based investment boutique owned by the firm, according to the Power Pacific website. PSSIM is said to boast USD6 million of registered capital.

PPIM operates out of, and is registered in Ontario and Quebec in Canada, with a research team based in Shanghai, that the firm notes is not registered, licensed or otherwise qualified in China. PPIM was reportedly the first Canadian institution to be granted a Qualified Foreign Institutional Investor license in China, which it gained in 2005.

In total, there are said to be at least 26 PFM licence holders who have been approved to operate in the jurisdiction, alongside PSSIM, said the International Adviser article. These include UBS Asset Management, which itself boasts 16 PFM products, followed by Value Partners, with 11 PFM funds.

Furthermore, firms such as BEA Union Investment, Schroder Adveq, Russel Investments and Income Partners have also gained PFM licenses from the China regulator.