It is the last frontier. China. Big fund managers have studied it and tried to build a business there. Many have faltered, but some have built a foothold. The latest to have a crack, as we say, is BNY Mellon. Good luck son, as we also say.
BNY Mellon Investment Management, which has about US$1.7 trillion under management, announced last week that it had received approval from the Shanghai Administration for Industry and Commerce, representing the final step in the incorporation of an Investment Management Wholly Foreign-Owned Enterprise (IM WFOE) in China.
The establishment of an IM WFOE will, over time, enable BNY Mellon to manufacture and distribute onshore private funds to Chinese high-net-worth and institutional investors.
According to Z-Ben, an influential Shanghai-based consultancy which specialises in funds management business in China, the first majority foreign-owned fund launch occurred only in April this year.
For the top foreign firms operating in the Chinese funds management industry, go to here.
Lindsay Wright, head of distribution and co-head of BNY Mellon, Asia Pacific, said: “BNY Mellon has operated in China since 1994. Establishing an IM WFOE will help improve connectivity with existing clients in China and is a first step in looking to establish onshore manufacturing for our investment boutiques and distribute domestic funds locally.
“China is a large and diverse market. We increasingly see Chinese investors searching for investment choice and global diversity and our multi-boutique model means we are well positioned to meet their investment needs.”
The IM WFOE has been established in the Shanghai Free Trade Zone and will be 100 per cent wholly owned by BNY Mellon Investment Management Hong Kong. The directors of the IM WFOE are Lindsay Wright and Doni Shamsuddin, co-heads of BNY Mellon, Asia Pacific; Greg Brisk, head of investment management governance; and, Emily Chan, head of risk and compliance.
Greg Bright is publisher of Investor Strategy News (Australia)