-China appears to have ignored the global fee squeeze
-High costs aren’t much of a consideration for investors, so long as they get a positive return
-This raises questions as to how foreign ETF managers will compete onshore

Update: Global asset management is facing a price war amid a lack of interest in actively-managed funds. This isn’t the case in China as active management continues to reign supreme. Z-Ben Advisors doesn’t believe that this will change in the foreseeable future as China remains the only market where rich fees are still acceptable; where else can an MMF charge 33bps? This means that foreign managers could have to assess their business strategy when coming onshore: China won’t conform to a cookie cutter approach.

Z-Ben Advisors believes that if Vanguard were to come onshore tomorrow with its current strategy, it would struggle. This is why: …

Full versions of our China Alerts are for clients only, if you would like more information about a subscription please contact us:
Tel: (+86 21) 6075 – 8163 Email: [email protected]