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Benefiting mainly from its improved retail brand perception, JP Morgan Asset Management has widened its lead in the latest China Power Ranking by Broadridge. In addition to reinforcing the firm's long-standing brand recognition in China, the US manager's wholly owned fund unit has also leveraged its global investment expertise with multiple QDII launches.

BlackRock, on the other hand, dropped one spot due primarily to the decline in its institutional branding score based on Broadridge's latest Fund Buyer Focus survey. Though the sudden leadership departure had an impact on the firm's overall brand and business expansion, its wealth JV, BlackRock CCB, demonstrated promising growth, with its AUM nearly doubling during H1 2023.

UBS Global Asset Management, still in the process of consolidating the Credit Suisse acquisition, has maintained its ranking as the drop in its branding scores was offset by other positive developments, such as higher China AUM (combining both its fund JVs).

Yoon Ng, Broadridge's Principal, APAC Asset Management Advisory, commented, "Notably, global managers are stepping up efforts to grow relationships with China's largest banks, a key factor to achieve success in the country."

In addition to the strategic partnership between JPM-China Merchant Bank, UBS recently secured a comprehensive asset and wealth management agreement with ICBC, covering key areas such as product development, distribution, client coverage, and research. Amundi also signed an MOU with BOC in June 2023 to enhance their strategic cooperation.

Yoon continued, "the top-10 ranked managers have stayed relatively stable, but seven of them have either already established a wholly owned FMC (Fund Management Company) or secured a retail fund license, and many have rolled out onshore funds, which has put pressure on UBS and Invesco in future China Power Rankings."

10th-ranked Amundi is reportedly in the final stages of preparing its application to set up a new wholly owned FMC in China. Further, the French asset manager has recently signed an MOU in Paris with its wealth JV partner Bank of China, emphasizing strategic cooperation in the cross-border business, overseas asset management, ESG, fintech, and supporting their wealth JV, Amundi BOC. Meanwhile, Manulife Investment Management and Morgan Stanley Investment Management are tied at 8th spot, both with slightly improved scores. Notably, Morgan Stanley's China FMC received its first QDII quota of US$120m in July this year.

Bryan Liu, Broadridge's Associate Director added, "Although stable on the Top 10, next-tier firms are facing intensified competition, as both Principal Financial and Warburg Pincus have leaped into the top 20 for the first time."

After rising 11 spots from its previous China Power Ranking spot, thanks to a minority stake acquisition in CCB Pension, Principal Financial jumped again by 6 spots to 15th. Apart from its private equity JV in Beijing, Principal Real Asset Investments, the US manager has recently obtained QDLP approval and set up Principal Private Management in Shanghai, underscoring its commitment to its China fund business. All these moves have helped Principal Financial improve scores across most categories.

Warburg Pincus made the biggest jump in the rankings, climbing nine spots to 18th spot, after securing regulatory approval to buy a 23.3% stake in Zhong Ou AM. Warburg Pincus now owns two fund JVs in China, a rare distinction it currently shares with UBS.