China

Schroders receives permission to form Schroder BOCOM Wealth Management in Mainland China

Schroder Investment Management Limited has received regulatory permission to establish Schroder Bank of Communications Wealth Management Co., Ltd. (“Schroder BOCOM Wealth Management”) in Shanghai with BOCOM Wealth Management Co., Ltd (“BOCOM Wealth Management”).

The proposed entity is the third wealth management joint venture partnership having received such regulatory permission, and the latest collaboration between Schroders and Bank of Communications (“BOCOM”) since the establishment of BOCOM Schroder Fund Management Co., Ltd in 2005.

Schroder BOCOM Wealth Management will be majority owned by Schroder Investment Management Limited with a 51% stake in the company, while BOCOM Wealth Management will hold 49% of shares.

 

Peter Harrison, Schroders Group Chief Executive Officer, commented: Schroders has long been committed to the Chinese market. We opened our first office in 1994 in Shanghai and have ever since been focused on developing our footprint in this exciting and dynamic country. The Chinese market represents a significant opportunity for Schroders, entailing the world’s second and third largest equity and bond markets respectively. As a result of our focus on China, we have been able to support both overseas investors looking to diversify into China and Chinese institutions keen to invest in the rest of the world. And, thanks to our partnership with BOCOM, this announcement today marks another key milestone in our continued growth in the region.”

 

Lieven Debruyne, Schroders Global Head of Distribution, commented: “Today’s announcement further demonstrates how our strategic partnership with BOCOM continues to grow and develop. We look forward to being able to support savers in China with innovative investment products which will serve as an alternative to more traditionally focused wealth management offerings which are typically available. Our partnership with BOCOM dates back to 2005. The two firms have gained valuable experience and trust in its partnership of over 15 years with our mutual confidence and understanding transcending both businesses.  “This partnership has until now enabled us to support the asset management needs of investors on the mainland and we are now well placed to grow our onshore wealth management proposition.”

 

Schroders is a global investment and wealth manager with 216 years of investment experience. It employs more than 5,000 staff globally, including 750 investment professionals located in 35 financial centres around the world. It has deep capability of investing in equities, multi-assets, fixed income, and private assets, as well as in offering relevant investment solutions.

Schroders’ global investment capability, distribution network and client servicing resources complement those of BOCOM Wealth Management, creating a strong synergy between the two businesses.

The next phase will be for Schroders and BOCOM Wealth Management to work closely together to set up Schroder BOCOM Wealth Management, further details on this will be announced in due course.