Schroders has submitted applications to China’s securities regulator to transfer three mutual funds to Neuberger Berman, a statement from the British asset manager’s Chinese funds business said on Wednesday.
Reuters reported last week that Schroders plans to withdraw from its Chinese funds business and had reached a deal to sell its products to U.S. asset manager Neuberger.
The transfer of management of the three funds is part of a three-year transformation plan launched by Schroders in 2025 to better serve client needs, Shanghai-headquartered Schroders Fund Management (China) said in the statement.
Schroders will continue its long-term investment in the Chinese market with “firm confidence and unchanged overall China strategy”, the statement said.
Schroders obtained Chinese regulatory approval to set up the wholly owned mutual fund unit in January 2023 as Beijing accelerated the opening of its financial sector to foreign companies. The business managed 1.7 billion yuan ($249.94 million) in mutual fund assets at the end of March, its latest reports showed, a tiny fraction of the parent company’s $1.1 trillion in global assets.
Schroders’ withdrawal will not affect operation of the company’s two other joint ventures in China, Reuters reported, citing people with knowledge of the matter.
($1 = 6.8017 Chinese yuan renminbi)
Reuters
