(China Alert) PFMs: China’s next mutual fund managers

·Private fund managers are moving to acquire mutual fund licenses
·A fund management license opens the door to retail investors
·PFMs’ moves create a roadmap for global managers’ China strategy

Update: Private fund managers (PFMs) are now attempting to make the transition into China’s mainstream fund management industry, and their actions are giving a surprisingly good preview of the path that global asset managers will follow to run mutual funds on the Mainland. PFMs aren’t the only ones creating new, retail-friendly fund management companies: banks, trusts and IFAs, among others, are also pursuing this business. Z-Ben Advisors believes this wave of new entrants will make fundamental changes to the way sales, scale and access to retail customers are achieved in China. And we predict that they will do so quickly enough to change the distribution and product landscape foreign managers will face in three years’ time, the first opportunity our readers will likely have to open fully-fledged, 100%-owned mutual fund management companies on the Mainland.

Although PFMs began life as China’s equivalent of western hedge funds, they are now moving quickly to ……

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