Pacific Investment Management Company (PIMCO) has launched its first QDLP private fund targeting professional investors and high net worth individuals in China. The PIMCO Tactical Opportunities Overseas Credit Private Securities Investment Fund is a feeder fund under the Qualified Domestic Limited Partnership (QDLP) programme, which allows foreign asset managers to raise funds from institutional investors and HNWIs in China for investment overseas.

PIMCO registered with the Asset Management Association of China (AMAC) to operate as a QDLP private fund manager last November. It launched the fund in March 2021 and completed the fund filing with AMAC on April 1.

The fund is investing primarily in an offshore PIMCO master fund, the PIMCO Tactical Opportunities Master Fund, which seeks to capitalize on opportunities across global public and private credit markets.

PIMCO is partnering with several leading Chinese banks and wealth managers to distribute the fund.

China, as the world’s second largest bond market, is strategically important for PIMCO both from portfolio management and distribution perspectives, according to a company spokeswoman.

“The onshore asset management industry and regulatory landscape have been evolving rapidly in China, offering more and greater opportunities and access for global firms including PIMCO. We increasingly see value in developing an onshore presence to deepen our reach and engagement with our clients/investors, prospects, distribution partners and regulators, as well as better serving the onshore China market,” the spokeswoman says.