MILAN, Sep 21 (Class Editori) — The list of asset managers and insurers targeting China’s rich asset management market is getting longer, and the market is becoming increasingly open to foreign investors even though some significant constraints remain compared to international European and US markets.
In China, assets under management amount to about 17 trillion euros: more than 14 trillion euros in individuals’ savings are in bank deposits and the assets of China’s mutual fund industry are worth about 3.5 trillion euros.
In this framework, Julius Baer made its latest move this morning, before the start of stock exchange trading, announcing the acquisition of a stake in Grow. Established in June 2021 in Shanghai, Grow is a China-based domestic asset management company founded and led by a team of senior investment professionals with a long track record.
The Swiss Group’s mission is to be a next-generation asset management company with a global profile but focusing on China. “The collaboration between Grow and Julius Baer will undoubtedly create value for these clients and will support our growth plans for this important market,” David Shick, Head of Greater China at Julius Baer, commented.
William Ma, Global CIO of Grow, added, “We are honored to welcome one of the world's most prestigious wealth management firms as a strategic investor. This agreement with Julius Baer reflects their trust in us and is a testament to our best asset management capabilities and access to our onshore Chinese network. I believe there are significant untapped opportunities for us in onshore China”.
Julius Baer does not give exact figures for this acquisition merely describing it as a double-digit equity investment of 1 million US dollars by Julius Baer. The two partners will jointly establish a distribution network so that Grow’s domestic clients will have access to selected Julius Baer offerings through the ‘Qualified Domestic Limited Partnership’ formula and Julius Baer’s global clients will have access to local investment expertise and resources.
At the end of last April, Zurich-based Julius Baer —130 years of history behind it, with activities in asset management through investment funds and private banking— boasted 457 billion Swiss francs in funds under management.
Last May, Azimut had obtained the same ‘Qualified Domestic Limited Partnership’ license. The Group chaired by Pietro Giuliani, Generali and Eurizon are the only three Italian asset management giants to have a presence in China. The first one was the Trieste-based company. From 2021, China has given the option of acquiring a majority stake in the joint ventures.
(Source:Class Editori)
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