The ability of foreign asset managers to take 100% foreign ownership of China-based subsidiaries and expand has not gone smoothly.
It may be too soon to assess the likely effect of the Wuhan coronavirus outbreak, but investors are taking risk off the table in the short term while they hope for a swift recovery.
Online sales of funds in China are disrupting the dominance of commercial bank distribution but the latest tie-up between two giant firms has limited scope, say some analysts.
A lack of scale in Singapore and the problems of trying to sell funds with no distribution costs or adviser commissions are seen as key reasons for Vanguard closing the office.
Passive fund houses are likely to wait for direct access to China’s mutual fund market, but this entails risks, says a report to be released today by Standard Chartered and Z-Ben Advisors.
With actively managed funds falling woefully short of their targets, passive products have the chance to finally overcome the reticence of Asian investors. Regulatory changes could help.
Ontario Teachers seeks Asia head; Vanguard shuffles leadership; Fidelity promotes Daisy Ho; Jupiter hires for EM debt; MBK Partners loses Kung; State Street names alts chief; RBC ITS brings in Kriesel; Credit Suisse replaces Thai wealth head; Henderson, Janus name bond chief.
The head of the $3.8 trillion fund house, Bill McNabb, outlines the opportunities the firm is considering on the mainland and elsewhere in Asia.
Britain’s EU exit may raise the cost of fund distribution in the region, force foreign asset managers to rethink European strategies and threaten the possibility of a China-UK Stock Connect.
The US fund house has been handed the largest single RQFII quota to add A-share exposure to its emerging market funds, despite China’s volatile equity market.
China's National Council for Social Security Fund has tapped international markets amid fears over capital outflow due to RMB devaluation. More mandates could be on the way.
Market participants may be overlooking the importance of US asset manager Vanguard's move to steadily increase China A-share exposure in its emerging-market products.