Selena Li

HONG KONG (Reuters – Abrdn, a British wealth manager is searching for a partner to expand its reach into China. The chairman of abrdn said that the company could be joining a growing group of global financial companies looking to gain a larger share of China’s market.

A collection of foreign names, such as BlackRock (NYSE) and Amundi. Schroders BNP Paribas, UBS and LON have made progress towards creating majority-owned wealth management ventures. This is a move that has been allowed by Beijing since 2019.

Douglas Flint (chairman of the Edinburgh-based fund management firm), created through a merger between asset managers. Standard Life Aberdeen 2017 (LON)

Many firms have begun to enter the market through foreign majority ownership partnerships with Chinese institutions. He said that it was something he would be looking into, and that it is definitely something Reuters will pay attention to.

China’s wealth management market grew 7.8% to 27.9 trillion Yuan ($4.4 Trillion) in September 2017. China’s banks are the most prominent distributors of third-party and proprietary wealth products.

Flint stated that China has become a more attractive market to people who want to use resources because of the changes in regulations.

Abrdn is among the foreign fund managers who established a China-owned unit for investment management in 2016. This unit can only be used by professional investors. The company also holds a half-share in an insurance agency in China, which was established in 2003.

Morningstar data shows that global abrdn mutual funds and exchange-traded funds – most of them actively managed portfolios – still have difficulty retaining assets with an estimated $10.7 billion outflow in the first three quarters 2021.

Flint explained that 18 months ago, Stephen Bird, a former Citi banker, assumed the position of abrdn chief executive officer.

Traditional asset managers have tried to expand their influence on the client-facing wealth section of developed markets, despite increasing fees and rising passive investment.

He said that passive continues to grow even in an environment where active managers have had difficulty proving the benefits of active management.

As traditional asset managers look to grow their customers through online platforms, abrdn bought an investment platform interactive investor in December 2013. It was worth 1.49 billion Pounds (or $1.98 Billion).

Flint feels that the unit is the most important element of abdrn’s presence in direct-to-consumer markets, where service providers need to get closer to younger investors.

($1=6.3740 )