At least four foreign fund houses were given the regulatory nod to either take full control of an existing joint venture or set up a fully-owned mutual fund business since the start of 2023.
Global asset managers have tried to step up their presence in China for years. Those efforts gathered speed recently after Manulife and Fidelity won regulatory approval to operate wholly-owned onshore businesses.
Official implementation framework announced this month expands investible universe for China’s private pension scheme, allowing more products and fund managers a slice of the trillion-dollar market.
The French fund house will cut poorly performing and overlapping funds and focus on products close to client preferences, as it aims to build Asia AUM, said the group deputy CIO.
Asian fund investors may continue to pay fund fees that are higher than other parts of the world as the region's commission culture is unlikely to change.
China's money market fund may see slower fund flows, as regulator releases new rules on mutual funds' liquidity management.
Money market products account for 51% of China's mutual fund assets, and Tianhong's Yu'e Bao makes up nearly a third of MMF assets. Analysts are worried about concentration risk.
China's investment industry is set to continue its rapid expansion, as institutions increasingly outsource investments to both mandates and mutual funds, says rating agency Fitch.
Studies have shown returns for some low-volatility ETFs have not delivered against similar funds. Jessica Cutrera has urged investors to do their homework on smart-beta products.
Mutual fund assets under management are declining as a proportion of household financial assets in Asia. This indicates a worrying lack of understanding of these products, say market participants.
The Indian regulator found excessive churning of funds managed by the bank in a complainant's portfolio, but said no further action would be taken as a settlement had been reached.
Shenzhen Capital aims to put out its first mutual fund by the year-end. CEO Sun Dong-Sheng says private equity firms have an advantage over traditional managers due to their industry expertise.