Deutsche Asset Management and Harvest Fund Management enter into Asia investment management agreement
Hong Kong, Deutsche Asset Management (Asia) Ltd (“DeAM”) and Harvest Fund Management Co Ltd (“Harvest”) today announced their co-operation to further leverage on the existing strong relationship between the firms. DeAM and Harvest Global Investments Limited (“HGI”), a newly formed entity in Hong Kong and wholly-owned by Harvest, intend to enter into an agreement on 31 July 2009. In this agreement, DeAM and its affiliates agree to sub-delegate (as of 1 September 2009, pending the required regulatory approvals) management of DWS mutual funds employing an Asian equities strategy and a Greater China equities strategy, and to transfer a number of senior managers and a sales team to HGI. DWS remains the investment manager and distributor of these mutual funds globally, and will continue to deliver world class investment performance to its clients by leveraging the manufacturing strength of its local partners.
HGI is a fully-owned subsidiary of Harvest, China’s largest Sino-Foreign JV asset management company, with over USD29bn (at 30 June 2009) in assets under management, in which DeAM has a 30% stake. Harvest is one of six China-based asset management companies approved by the CSRC to form offshore asset management operations. The establishment of HGI is a strategic move to strengthen Harvest’s international presence, building on its success in China and its relationship with Deutsche Asset Management. Harvest will focus on investing in the Greater China area and developing a broad Asian equity capability. Full operation of the platform is expected to commence in the third quarter of 2009.
In terms of the sub-delegation of certain funds, DeAM will provide operational assistance to HGI during a defined transitional period in areas including back office support, trading, and compliance. Approved by the Harvest Board, Ms. Michele Bang has been appointed to serve as HGI’s Chief Executive Officer. Bang, previously CEO of DeAM, Asia (ex-Japan), has 19 years global financial industry experience in Asia, and will be responsible for smoothly integrating the teams and establishing sound business platform for future expansion.
“This is an exciting new step in our partnership with Harvest,” said Kevin Parker, Global Head of Deutsche Asset Management. “They have had significant success in developing their business in China, and we see great potential for them to apply their expertise in Asia more broadly.”
Henry Zhao, Chief Executive Officer, Harvest Fund Management, said “This agreement takes the close cooperation between Harvest Fund Management and Deutsche Asset Management, to a new level, broadening it from China to pan Asia.”
Robert Rankin, Deutsche Bank Chief Executive, Asia Pacific said, “Harvest is a close and valued partner with whom we see tremendous further opportunity for growth. They are an example of China’s world-class capability and potential.”
About Deutsche Asset Management
With approximately USD 613 billion in assets under management globally (as of 30 March 2009), Deutsche Bank’s Asset Management division is one of the world’s leading investment management organisations, not just in size, but in quality and breadth of investment products, performance and client service. The Asset Management division provides a broad range of investment management products across the risk/return spectrum. In June 2005, Deutsche Asset Management initially became a shareholder of Harvest Fund Management Co., Ltd. with a 19.5% holding; in March 2008, it increased its stake in Harvest to 30%.
About Harvest Fund Management Co., Ltd.
Harvest was founded in 1999 in Beijing and now has over 360 employees. Harvest is 30% owned by Deutsche Asset Management and is the largest Sino JV (Dec., 2008) and the second largest fund management company in China (2008 Z-Ben Advisors) with USD29bn (as at 30 June 2009) in funds under management.
About Harvest Global Investments Ltd.
Harvest Global Investments was incorporated on 23 September 2008 subject to the approval of the CSRC. The registered capital is HKD 60 million. By Feb 2009, HGI was granted with Type 4 (Advising on Securities) and Type 9 (Asset Management) license from the SFC.
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