American investment management firm, Invesco Ltd. is reportedly pursuing employee expansion in China after achieving the asset management targets two years prior to the scheduled time, in line with its mission to consolidate future growth in the expanding mutual fund market.
Andrew Lo, Head of Asia Pacific, Invesco, cited that assets managed for Chinese clientele bounced over 40% last year, reaching $112 billion on December 31, successfully surpassing the $100 billion target set by the company for 2023.
With this, the Atlanta-based firm plans to recruit a couple dozen staff this year to support various functions such as investment teams and subsequently boost its joint venture mutual fund business, which accounts for majority of assets.
Reportedly, global players in asset management are pursuing the Chinese market as authorities allow the industry to bring in foreign competition.
Last year, BlackRock Inc. emerged as the first foreign entity to fully own a mutual fund business and is now launching new products to compete with rivals like Berman, Fidelity and Neuberger, who have secured approval for similar units.
Mr. Lo mentioned that Invesco is aiming to expand its existing investment capabilities into the Chinese market as it sees new avenues into pension, ESG, cross-border investments and opportunities in continued market introduction & liberalization.
Invesco’s promising influx portraying a solid foothold in China and exchange-trade funds are primary indicators of the business status, notably amidst rising fee margin pressures anticipated throughout the first quarter.
Credible data survey displays a 27% growth in China’s mutual fund market, valuing the sector at $4 trillion as of November 30.
Moreover, despite the increasing volatility, which led to a demand drop last year, 1,960 funds were launched reporting 32% growth.
The local joint venture, dubbed Invesco Great Wall Fund Management gained mutual fund income of $27.5 billion consisting of $12.1 billion incurred after 33 new launches.
In December, Invesco and the joint venture had more than 350 full-time employees working in mainland China, which the firm intends to expand.