SEI (Nasdaq: SEIC), a leading global provider of outsourced asset management, investment processing and investment operations solutions, today announced its initial expansion into mainland China through the establishment of an investment advisory agreement with its first client, Yinhua Fund Management Co., Limited (Yinhua) in Beijing, China.
SEI will be instrumental in working with Yinhua in launching its Qualified Domestic Institutional Investment (QDII)* Fund in the People's Republic of China. The deal marks SEI's first client in mainland China, one of the fastest-growing asset management markets worldwide.
Through the agreement, Yinhua will utilise SEI's investment management services, a key component of its Global Wealth Services solution. The Global Wealth Services solution offers a comprehensive suite of services designed to help wealth management organisations capitalise on their strategic objectives of growth, risk and expense reduction and reallocation of resources toward client facing activities.
Through the investment management services offering, Yinhua will leverage SEI's experience as one of the world's premier providers of a Manager-of-Managers programme. This programme employs a rigorous process to evaluate, select, monitor and administer the best global managers in every geography and asset class. The agreement will enable Yinhua to efficiently and effectively implement investment management solutions that are consistent with the clients' investment objectives. SEI will also provide Yinhua with training, fund distribution services and support to assist them in successfully marketing and gathering assets in the Fund.
SEI currently manages more than US$197 billion in assets worldwide for institutions, banks and wealthy families.
Commenting, Joseph P. Ujobai, Executive Vice President, Global Private Banking at SEI, said: "China holds great opportunity for us and we are pleased to be partnering with Yinhua for such a significant business venture. We look forward to working with Yinhua to create a differentiated offering that will help them meet clients' needs and grow their business. This relationship also reflects our growing global presence and is a key step in our strategy to expand SEI's footprint in Asia."
Bill Cassidy, Managing Director, SEI Investments (Asia) Ltd., said: "QDII is a very important program for both the mainland China asset management Industry and for mainland Chinese Investors. Within the context of QDII, this partnership will give investors an opportunity to diversify their equity holdings with top asset managers across multiple global markets. With the recent market volatility, we believe that over time, investors will be looking for experienced hands to help them find investment opportunities not otherwise available and this unique partnership gives them that choice."
Dr. Wang Lixin, Chief Executive Officer, Yinhua Fund Management Co., Limited, said: "We are glad to have partnered with SEI in the launch of this QDII Fund. SEI's capabilities in manager research and oversight, coupled with their expertise in creating strategies in line with our investment objectives, were key drivers for their selection. By working together we can create a differentiated QDII offering that will provide Chinese investors with a world-class investment solution and access to global markets."
*QDII - In People's Republic of China, QDII allows investors to invest in foreign securities markets via certain fund management institutions, commercial banks, securities companies and other asset management institutions via securities offerings which have been approved by the designated Regulator