Schroders Exits China Fund Unit, Selling Products to Neuberger Berman After $13.2 Billion Nuveen Deal
Updated
Updated · Reuters · May 15
Schroders Exits China Fund Unit, Selling Products to Neuberger Berman After $13.2 Billion Nuveen Deal
6 articles · Updated · Reuters · May 15
Schroders is shutting its wholly owned China fund management unit launched in 2023, with Neuberger Berman agreeing to take over the unit’s fund products, sources told Reuters.
The retreat follows shareholder approval last month for Schroders’ 9.9 billion-pound ($13.2 billion) sale to Nuveen, as the British manager moves away from smaller operations.
Schroders is also seeking buyers for the China unit’s licence, which would give an acquirer immediate access to operate in China’s $5.6 trillion fund market; Mirae Asset is among firms in talks, sources said.
The Shanghai-based unit managed 1.7 billion yuan ($249.9 million) at end-March, and the exit does not affect Schroders’ two other China joint ventures.
China opened the door to fully foreign-owned fund managers in 2020, and Schroders appears set to become the first global asset manager to leave after establishing such a unit.
Is Schroders' China exit a warning about market risks or just a casualty of global M&A strategy?
As China tightens financial controls, is the gold rush for foreign asset managers on the mainland already over?