Schroders received Chinese regulatory permission to form a majority-owned wealth management venture with a unit of Bank of Communications (Bocom). Schroders applied to set up a wholly-owned mutual fund business in China, where the government fully opened up its giant financial sector to foreign companies last year. Chinese market represents a significant opportunity for Schroders, entailing the world’s second and third largest equity and bond markets respectively. Schroders is setting up too many platforms in China, potentially diluting its resources to run its local businesses. Schroeder already owns a mutual fund venture with Bocom and operates a private fund business in the country.
New wealth management venture, based in Shanghai, will be 51 per cent controlled by Schroder Investment Management, and 49 per cent owned by Bocom Wealth Management. The third wealth management venture in China. Amundi partnered with Bank of China, while BlackRock and Temasek Holdings are setting up a similar venture with China Construction Bank. Marketing is what really matters. And this is what’s being overlooked by a very myopic, large group of global managers.