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Interviews with CEOs of leading chinese asset managers

To many foreign fund managers, China presents many great opportunities, at the same time, many challenges. How do we view these opportunities and challenges? Deloitte China IMAA team is delighted to share with you the insights from the CEOs of two leading mutual fund managers—China Merchants Fund, and ABC-CA Fund Management Company, a joint venture of Agricultural Bank of China and Amundi Asset Management. In addition, we are grateful that Dr. Kai-Fu Lee, a world renowned scholar and investor in AI and high tech, as the founder of incubator Sinovation Ventures, shares his outlook for investment opportunities in China. We hope you find these interviews intriguing, and that these insights help to put things into perspective for you.

Executive Summary

1. Please tell us about your observation of how COVID-19 and the current regulatory and economic environment are changing the fund industry?

The mutual fund industry has not only experienced challenges in this sudden public health crisis, but also faces rare development opportunities. Firstly, the pandemic strengthens fund managers’ experimentation with online sales and poses a greater test on our IT ability. Since the outbreak, fund managers made full use of digital distribution methods such as WeChat, SMS, online roadshows, and other social media, to keep connected with investors. We have benefited from our previous investment in IT and did not suffer any disruption from the pandemic. Secondly, the fund industry is going through a phase wherein “the winner takes it all”. A fund manager should focus on the cultivation of the core competences in investment and research, striving for better customer experience, and creating a top market brand to survive in the face of competition. Currently, we are experiencing a global economic environment characterized by low interest rates, low growth and a general overvaluation of assets. These factors make it difficult for fund managers to post sustainable returns

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Performance magazine issue 33, September 2020

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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