JP Morgan Asset Management (JPMAM) has clinched the number one position alongside BlackRock in the latest bi-annual China “power ranking” report by Broadridge Financial Solutions.
The asset manager was ranked second in the last report published in November last year, while BlackRock now tops the chart for the fourth time in a row.
JPMAM’s score was lifted by a jump in its local operations score. The asset manager officially won approval from the Chinese securities regulator to acquire the remaining 51% stake in its fund joint venture, China International Fund Management, in January this year.
“Its move provides a comprehensive asset management business, including mutual funds, segregated accounts, QDII and QDLP, as well as a recognised brand and an extensive distribution network,” the report said.
Meanwhile, BlackRock, the first foreign asset manager to establish a wholly-owned fund management company in China, has a slightly lower overall power score compared with JPMAM due to a decline in its assets under management.
“The inflection point experienced by global asset managers in China demonstrates their continuous commitment to the country. The growing importance of FMCs in the Chinese wealth and asset management industry cannot be ignored and these firms are seizing opportunities presented by the changing landscape,” said Yoon Ng, Broadridge’s principal for global asset management advisory.
UBS Global Asset Management maintained its third place position with a moderate decline in its overall score, while Schroders and Invesco swapped places to grab fourth and fifth place respectively.
As China has opened up its asset and wealth management industry to foreign players, other asset managers have also made significant progress.
Fidelity and Allianz Global Investors remain sixth and seventh on the chart respectively, while the former improved its score as it benefited from the launch of its first retail fund in April.
Manulife Investment Management and Morgan Stanley Investment Management jumped six and nine spots respectively to enter the top 10 for the first time after both companies obtained full control of their fund joint ventures.
“China will be a pivotal play for any global manager with ambitions to stay within the top 50 asset managers. Growth models for global managers in China differ – from an all-access model to remote operations, but the fully-owned FMC model will increasingly be the top choice for global managers serious in growing their onshore business,” said Ng.
