Deutsche Bank’s Asset Management division has increased its stake in leading China funds management company, Harvest Fund Management Co. Ltd, to 30% ownership, for an undisclosed price.
The stake increase has received formal approval from the China Securities Regulatory Commission (CSRC).
Deutsche Bank’s Asset Management division acquired its initial 19.5% shareholding in Harvest Fund Management Co. Ltd in March 2005 – creating the largest foreign joint venture fund management company in China.
“This further investment is testament to the success of our partnership with Harvest, and also Deutsche Bank’s commitment to growing its business in one of the world’s most dynamic markets,” says Colin Grassie, CEO, Deutsche Bank, Asia Pacific.
“Ours is more than a financial partnership with Harvest – it’s a true strategic relationship with both organisations successfully leveraging the strengths of each respective firm. For example, we have established a global talent exchange program between our organisations. We have also worked closely together on investment management co-operation, including the first stock-oriented QDII fund issued by a joint venture fund firm which utilises the global investment experience of its foreign investor,” adds Ed Peter, head of Deutsche Asset Management, Asia Pacific and MENA.
With over RMB 252 billion of assets under management as of 31 December 2007, Harvest Fund Management was ranked #3 by total market share in the Chinese asset management industry and the #1 Sino-foreign fund manager.
The product range includes a lineup of mutual funds and asset management businesses, including 2 close-ended funds, 13 open-ended funds, several social security funds and corporate pension fund accounts. Harvest employs 309 staff, including investment, research and market service teams.
Deutsche Bank commenced business in China in 1872 and became locally incorporated in China in January 2008. The bank participates strongly in the country in cross border investment banking; sales and trading activity; transaction banking and trade services; private wealth management; and private and business banking through retail branches in Shanghai and Beijing. Deutsche Bank also has a 9.9% shareholding in Huaxia Bank.