13 Aug 2007
Prudential raises its stake in China fund management joint venture
Prudential plc ("Prudential") announced today that it has increased its stake in CITIC Prudential Fund Management ("CITIC Prudential"), its joint venture with CITIC Group in China, from 33 per cent to 49 per cent.
The increase in stake has been approved by the China Securities Regulatory Commission ("CSRC"), the Ministry of Commerce and the State Administration for Industry and Commerce. Prudential and CITIC remain the primary shareholders with 49 per cent each.
Barry Stowe, chief executive of Prudential's operations in Asia, said: "We are pleased to have reached this latest milestone which underscores our continued commitment to our very successful partnership with CITIC, and the rapidly growing funds management industry in China.
"Against our objective of building a material and profitable fund management business in China, CITIC Prudential will continue to capitalize on Prudential's global investment management expertise as well as CITIC's strong distribution capabilities and excellent local market knowledge."
CITIC Prudential Fund Management was established in September 2005 and now has more than US$1.1bn in assets under management and advisory. In 2006, CITIC Prudential launched an income balanced fund and an equity fund which raised US$380 million and US$428 million respectively, within one month of the launch.
In May 2006, CITIC Prudential Fund Management also obtained approval from the CSRC to offer investment advisory services. It currently acts as investment adviser to Prudential Asset Management Hong Kong for the latter's participation in China's domestic stock market under the Qualified Foreign Institutional Investor scheme.
The company has ambitious growth plans for its current and new areas of business which include participation in the mainland's Qualified Domestic Institutional Investor scheme and pensions.
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Notes to Editor:
Prudential plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 150 years and has £256 billion in assets under management as at 30 June 2007. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.
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