Aug 02, 2013
Singapore, July 30th 2013 - Standard Chartered Bank China has announced the official launch of its domestic mutual funds on 29 July 2013 in Shanghai, making it one of the first foreign banks to sell domestic mutual funds in the Mainland. The Bank will select funds with track records of high performance, managed by selective domestic fund companies at the initial stage of cooperation, covering all types of mutual funds in the market, comprised of stocks, combination, bonds and currencies.
Currently the Bank cooperates with top tier domestic fund management companies including China Asset Management, E Fond, China Southern, Bosera Asset Management, Guangfa Fund Management, China Universal Asset Management, and Bank of Communications Schroder Fund.
Commenting on the launch, Alexis Calla, Global Head, Advisory & Investment said, "This is a great development for our customers. Our teams in China and Singapore have been working very hard at making this happen. With the addition of domestic mutual funds, we will now be able to expand our recommendations and offer solutions to our customers involving both domestic and international investment solutions. We have been analysing and recommending investments in the major Chinese asset classes to our customers outside of China for many years; we will now be able to bring this expertise to our wealth management customers in China. This is a major step forward in helping us be our customers' trusted partner."
As early as 2008, the Bank began to prepare for domestic fund sales through close communication with many leading fund management companies reaching preliminary agreements in 2009 with China Asset Management, Guangfa Fund, Bank of Communications Schroder Fund, Bosera, and Fortune SG Fund, amongst others. Building on the Bank's rich experience on funds from its headquarters and other markets, a special team was set up for long term research on the selection of funds.
Chan Tuck Keong, Head of Onshore Funds added, "This development has been a long time in the making. We have completed our due diligence on few leading fund houses in China and, we believe that we have fund houses that both have the right mentality towards the asset management business and also have a product offering that of superior quality to other providers in the market."
While the Bank's Global Investment Council currently has a Neutral short term weighting to the China equity market, it still believes that an allocation to Chinese equities is critical in the context of a diversified portfolio, especially for local investors. The Bank's view is that China's growth is going to exceed Developed markets for many years to come and over the long term, this will benefit corporate earnings and thus shareholders.
Re-disseminated by The Asian Banker