Foreign asset managers remain confident in the Chinese market.
On May 20, Schroders Fund Management announced that it has submitted an application to the China Securities Regulatory Commission (CSRC) to change the registration of several of its public securities investment funds. The plan is to transfer the fund management responsibilities of the Schroder Hengxiang Bond Securities Investment Fund (Schroder Hengxiang), the Schroder China Momentum Equity Securities Investment Fund (Schroder China Momentum), and the Schroder Tianyuan Pure Bond Securities Investment Fund (Schroder Tianyuan) from Schroders Fund Management to Neuberger Berman Fund Management.
Concurrently, Neuberger Berman Fund Management issued an indicative announcement stating that, should the proposal to change the fund manager be approved by the respective fund unitholders' meetings, it will also take on some of the core investment personnel associated with these funds. Both parties have expressed their commitment to ensuring a smooth transition and prioritizing the interests of fund unitholders.
**Based on Group Strategic Transformation**
According to the statement from Schroders Fund Management, the changes to these products are contingent upon completing the fund registration change and obtaining approval from the relevant fund unitholders' meetings. Schroders Fund Management will work closely with all related parties to smoothly conduct the unitholders' meetings and subsequent procedures, ensuring a stable transition in the change of fund manager and safeguarding the legitimate rights and interests of fund unitholders.
Wind data shows that as of the end of the first quarter of this year, the assets under management for Schroder Hengxiang, Schroder China Momentum, and Schroder Tianyuan were approximately 347 million yuan, 777 million yuan, and 503 million yuan, respectively.
This change in fund manager is understood to be part of a strategic adjustment by the Schroders Group. Since 2025, the Schroders Group has initiated a three-year global business streamlining and transformation aimed at maintaining business focus and enhancing operational efficiency to better serve client needs. To date, the group has closed asset management operations in Brazil and Indonesia, real estate investment business in Munich, sold its private credit business in Australia, and restructured its Korean operations, with a renewed focus on the private markets.
Within this context, and as part of the Schroders Group's global strategic adjustment—while maintaining its overall China strategy and continuing to conduct various asset management businesses in mainland China, including public fund management—the group plans to wind down Schroders Fund Management and increase its involvement in the management of Bank of Communications Schroder Fund Management.
As a leading global asset management company, the Schroders Group has been operating in mainland China for over 30 years and is a significant participant and contributor to the two-way opening of China's financial markets. Currently, the group provides a wide range of investment solutions through several licensed entities in China, covering private market investment tools, public market funds, bank wealth management products, and fund management products. It actively promotes and participates in relevant business and cooperation under two-way cross-border investment mechanisms.
**Neuberger Berman to Assume Related Business**
The entity set to assume the management of these funds is Neuberger Berman Fund Management.
On May 20, Neuberger Berman Fund Management published an indicative announcement on its official website regarding the proposed assumption of management for certain public securities investment funds from Schroders Fund Management. The announcement stated that the company will work closely with relevant parties to smoothly complete subsequent work, fully ensuring the continuity and stability of fund investment operations and safeguarding the legitimate rights and interests of fund unitholders.
Neuberger Berman Fund Management is part of the Neuberger Berman Group. Founded in 1939, the group has always adhered to the principle of pursuing long-term, stable investment returns. Its drive is rooted in deep fundamental research, a continuous pursuit of investment insights, a client-centric culture of innovation, and a free-flowing internal communication structure.
After entering the Chinese market in 2008, the Neuberger Berman Group actively seized opportunities presented by financial opening-up, steadily establishing a comprehensive asset management service system covering public and private fund management, Qualified Domestic Limited Partner (QDLP) programs, and other areas, continuously deepening its presence in China.
In 2021, Neuberger Berman Fund Management became one of the first wholly foreign-owned public fund management companies approved for establishment in China under the Neuberger Berman Group. The following year, it became the second newly established wholly foreign-owned public fund manager to officially commence operations. In 2023, Neuberger Berman Fund Management launched multiple bond, hybrid, and equity funds, with its public fund management scale exceeding 10 billion yuan within a year. In 2025, the company successively issued various thematic and sustainable development-focused funds. As of the end of the first quarter this year, its latest public fund management scale was approximately 14.47 billion yuan.
Neuberger Berman Fund Management indicated that assuming the management of these funds is based on the Neuberger Berman Group's continued positive outlook on the long-term development prospects of China's capital markets and represents a strategic move to deepen its business布局 in China.
**Vast Opportunities in the Chinese Market**
Since the removal of foreign ownership limits in public fund management in 2020, several foreign institutions have established wholly foreign-owned public fund companies in China, and some Sino-foreign joint venture fund managers have converted to wholly foreign-owned entities. This marks a new phase of comprehensive opening in China's public fund industry, providing broad development space for foreign institutions while also driving the overall development of the sector.
How are foreign institutions that have actively布局 faring?
Wind data shows there are currently nine wholly foreign-owned public fund management companies in the industry. Six were newly established after the ownership limit was lifted in 2020, while the other three were converted from Sino-foreign joint ventures. These are JPMorgan Fund Management, Manulife TEDA Fund Management, Morgan Stanley Fund Management, Neuberger Berman Fund Management, BlackRock Fund Management, Fidelity Fund Management, Schroders Fund Management, Allianz Global Investors Fund Management, and AllianceBernstein Fund Management.
As of the end of the first quarter this year, the combined assets under management of these nine wholly foreign-owned public fund managers exceeded 410 billion yuan. Among them, JPMorgan Fund Management manages over 230 billion yuan, Manulife TEDA Fund Management manages over 110 billion yuan, and three others have scales exceeding 10 billion yuan.
Foreign public fund managers remain confident in the Chinese market. Looking ahead, Neuberger Berman Fund Management stated that the company has the confidence and capability to succeed in China's asset management business. It aims to fulfill its fiduciary duty with professional expertise, deepen its commitment to the Chinese market with a long-term perspective, help investors achieve long-term wealth growth, and contribute to the high-quality development of the capital market.
Regarding future布局, the Schroders Group expressed its commitment to maintaining long-term investment and firm confidence in the Chinese market. The Chinese market holds vast opportunities, and the Schroders Group remains steadfastly committed to the long-term development and success of the Chinese market. It will continue to deepen its presence in China, providing diversified investment solutions and product services for Chinese investors across a broad asset management market encompassing both public and private funds. The Schroders Group will continue to invest in client relationship building and maintain stable, efficient collaboration with international and domestic partners to achieve the outcomes clients expect, both now and in the long term.
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