CHINA - UBS and the State Development Investment Corporation (SDIC) are set to launch a new funds management company in China as part of a push to become a leading asset manager in the region.
Subject to approval by the China Securities Regulatory Commission (CRSC), the two firms will form a funds management firm through the purchase by UBS of a 49% stake in Shenzhen-based China Dragon Fund Management Co. Ltd.
China Dragon, currently 100%-owned by SDIC, manages RMB3.2bn (e292.8m) mutual fund assets. The partnership would mark the first venture utilising the new maximum 49% foreign partner-holding in a Chinese fund management company.
The partners propose using the existing China Dragon platform to launch new mutual funds and, as regulations permit, pursue “discretionary investment management mandates”.
Commenting on the partnership, John Fraser, chair and CEO of UBS Global Asset Management said: “China is a key strategic market for all of UBS. This is an important step in our strategy to build a major presence in China’s asset management industry as market liberalisation continues.”
Mr Hongxiang SHI, SDIC’s vice president and chair of SDIC Hongtai, said: “China’s fund management industry is growing rapidly and investors are becoming increasingly sophisticated. Our partnership with an international institution of UBS’s stature will serve to introduce international best practices to the joint venture.
“SDIC is confident that working together with UBS, the joint venture will quickly become on of the leading asset management companies in China.”
China Dragon will be restructured through the partnership between SDIC Hongtai Trust & Investment Co. Ltd – a wholly owned subsidiary of SDIC – and UBS.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers