China’s trust companies have for the first time overtaken retail funds in terms of assets under management (AUM), according to a recent KPMG report.
KPMG’s inaugural Mainland China Trust Survey for 2011 contains the detailed financial information, inclusive of product information, for 56 of the 65 registered trust companies in China. Trust companies are among the more unique financial institutions in light of the dual role they play in China as a wealth management institution and a source of debt financing.
Key Highlights:
- China’s trust companies have for the first time overtaken retail funds in terms of AUM. The survey finds that 2010 was the best year for trust companies since their relicensing in 2007.
- Trusts experienced unprecedented growth rates in profits, while AUM for some companies doubled, and in other cases, tripled from 2009 to 2010. Retail fund management companies generated AUM totalling USD 400 billion for 2010, whereas China’s trust funds saw AUM totalling USD 480b for the same time period.
- Trusts have seen unprecedented success in the last 12 months is because as they continue to target a prosperous segment of the market – high net-worth individuals and institutional investors.
- A noticeable trend in the last 16 months has been the increasing diversity of their product offerings which now include arbitrage funds, sunshine funds (privately managed equity funds), infrastructure funds and real estate funds to name a few.
To download the full report, click on the PDF attachment.