BNY Mellon Asset Management is to sub-advise China Southern Fund Management on a $4 billion Qualified Domestic Institutional Investor (QDII) fund. The fund has received a total of $8 billion in subscriptions from Chinese investors.
BNY Mellon Asset Management claims to be the first non-domestic asset manager to receive approval to advise on such a mandate. In addition, China Southern has appointed BNY Mellon Asset Servicing as the global custodian to the QDII mandate.
The QDII programme enables Chinese investors to access foreign fund management capabilities. China Southern is a domestic Chinese asset management company and was amongst the first Chinese asset management companies to be authorised to develop and market QDII products.
“We are pleased with the success of our first asset management venture in China,” says Ronald P. O’Hanley, president and chief executive officer of BNY Mellon Asset Management. “This launch is to date the largest with which we have been involved and we are looking forward to continuing the development of our Chinese business.”
Jon Little, vice chairman of BNY Mellon Asset Management, says demand exceeded expectations. “It is a fabulous result, with 2007 proving to be another successful year for us in the Asia-Pacific marketplace,” he asys.
Several BNY Mellon Asset Management investment subsidiaries will act as sub-advisors to China Southern, whose goal is to achieve global equity exposure with alpha generated from asset allocation, stock selection, and long only fund selection.