Financial Associated Press (Shanghai, reporter Han Li) news, since BlackRock, Fidelity Fund, the third foreign-owned wholly-owned public fund company, that is, Neuberger Berman was approved to establish on September 22. This also means that the three asset management giants of BlackRock, Fidelity and Neuberger Berman have made new progress in their public offering layout in China.
Liu Song, president of Neuberger Berman China, once said that although foreign capital can invest in China through channels such as QFII and RQFII very early, the high-quality funds that have really entered the Chinese market, such as overseas pensions, endowment funds, sovereign funds, etc., are still not large, and China has not been allocated as a bottom warehouse. In the next three to five years, it will be a more certain event for foreign investment to increase the allocation of the Chinese market.
China's capital market is gradually opening up to the outside world, and the global asset management industry giants are also accelerating their entry into the Chinese market. As of now, there are still many foreign institutions such as Fanda Fund, Schroder Fund, and UnitedBerde Fund waiting in line.
The NeubergerMann Fund was approved
According to the CSRC's approval, NeubergerMann Fund has a registered capital of 150 million yuan, the registered place is Shanghai, and the company's business scope is public securities investment fund management, fund sales, private asset management and other businesses licensed by the CSRC. The Lubermann Fund is 100% owned by Berman Investing Consultants Limited.
At the same time, the approval document also stated that the establishment of the NeubergerMann Fund will be completed within 6 months from the date of approval, the capital will be paid in full, directors and supervisors will be elected, and senior management personnel will be hired. In addition, Before obtaining the license to operate securities and futures business, NeubergerMann Fund shall not conduct business under that name; it shall issue public fund products within 6 months from the date of obtaining the license to operate securities and futures business.
The Financial Associated Press reporter noted that Neuberger Berman submitted an application for a public offering license on the same day that the foreign equity ratio restriction of fund companies was lifted in China, and blackRock also submitted a declaration at that time.
On 27 November 2020, Neuberger Berman Investing Consultants received feedback from the SFC. Within 30 working days, Luberman Investment Consultants Co., Ltd. is required to provide additional explanations and demonstrations on the statistical caliber of the global non-related ordinary account insurance asset management scale, as well as the relevant indicators of the asset management business of Luberman Group and Luberman Investment Consulting Co., Ltd. in the forefront of the world.
In addition, a commitment to Luberman Investment Advisors GmbH to fulfil its obligation to continue to replenish capital to the NeubergerMann Fund and to provide liquidity support in the event of a liquidity crisis in the LubermanIfolig Funds arises.
Behind Neuberger Berman Investment Consultants Ltd. is the veteran international asset management company Neuberger Berman (hereinafter referred to as "Neuberger Berman"). Neuberger, one of the company's founders, entered Wall Street on the eve of the Great Depression, co-founding Neuberger in 1939 with Robert Berman, and did not officially retire until 1999, when the company went public. Neuberger's 60 years at Neuberger Neuberger have been remarkable, and he is known as the father of the American mutual fund. In 2003, Lehman Brothers acquired Neuberger Berman for $2.63 billion. After lehman's bankruptcy, Neuberger Berman was delisted through an employee-initiated share acquisition program to become an independent company that continues to this day.
With offices in 25 countries and 36 cities, Neuberger Berman manages portfolios of equities, fixed income, private equity and hedge funds for institutional entities, investment advisors and individual investors worldwide. The company has 600 investment experts and more than 2,300 employees. As of the end of June this year, the company had assets under management worth $433.2 billion.
Neuberger Berman Investment Management (Shanghai) Co., Ltd. is a wholly-owned subsidiary of Neuberger Berman Group in China, established in 2016, registered as a private equity fund manager in 2017 with the Asset Management Association of China, and obtained qdlp pilot qualification in January 2018 by its subsidiary, Neuberger Berman Overseas Investment Fund Management (Shanghai) Co., Ltd.
Neuberger Berman has also repeatedly mentioned in public the promotion of the layout of the Chinese market. Liu Song, president of Neuberger Berman China, once said: "Although foreign capital can invest in China through channels such as QFII and RQFII very early on, the high-quality funds that have really entered the Chinese market, such as overseas pensions, endowment funds, sovereign funds, etc., are still not much, and China is not allocated as a bottom warehouse." In the next three to five years, it will be a more certain event for foreign investment to increase the allocation of the Chinese market. ”
Foreign-funded institutions followed
On June 11 this year, BlackRock announced that it had obtained a license from the Chinese regulator to carry out public fund business in China, and on June 18, BlackRock Fund held an opening ceremony. At present, BlackRock's first public offering product has been established. On August 6, the second wholly foreign-owned public fund, Fidelity Fund, was also approved for establishment.
The Financial Associated Press noted that in addition to BlackRock, Fidelity Fund and Neuberger Berman Fund, foreign institutions such as Fanda Fund, Schroder Fund and United Boder Fund are also under approval.
In addition, there are foreign institutions that hope to achieve the goal of 100% shareholding by increasing the proportion of shareholding. According to data from the Asset Management Association of China, as of the end of May 2021, there were 135 domestic fund management companies in China, of which 44 were Sino-foreign joint ventures and 91 were domestic companies.
In August last year, the Shanghai United Equity Exchange disclosed information showing that Shanghai International Trust Co., Ltd. (hereinafter referred to as "Shanghai Trust") listed and transferred 49% of the equity of Shanghai Investment Morgan Fund Management Co., Ltd. (hereinafter referred to as "Shanghai Investment Morgan") at a transfer price of 7 billion yuan, and the information disclosure started and ended from August 25 to September 21, 2020.
Earlier, in 2019, Shanghai Trust had listed on the Shanghai United Equity Exchange to transfer 2% of the equity of Shanghai Investment Morgan, with a transfer reserve price of 241 million yuan, a premium of 33.89% over the appraised value of 180 million yuan. In the end, JPMorgan Asset Management successfully bid for 241 million yuan for a 2% stake in Shanghai Investment Morgan held by Shanghai Trust.
However, as of now, on the official website of Shanghai Investment Morgan, the shareholder structure is still 51% held by Shanghai Trust and 49% by JPMorgan Chase.
In May 2021, Huaxin Securities transferred its 36% stake in Morgan Stanley Huaxin Fund Management Co., Ltd. through a public listing on the Shanghai Stock Exchange. After the expiry of the listing period, Morgan Stanley, as the sole intended transferee, accepted the above-mentioned equity by way of an agreement transfer for a transfer price of RMB390 million.
Earlier, in June 2019, Morgan Stanley acquired a 44% stake in the Morgan Stanley Huaxin Fund and acquired a relative controlling interest. The industry expected at the time that Morgan Stanley may seek further control of morgan Stanley Huaxin Fund.
The above situation shows that whether it is an independent application for a license or the pursuit of equity increase, the current actions of foreign giants are inconsistent. However, one thing is clear, that is, the firm determination of foreign giants to open up the Chinese market.