A long-term look at Chinese asset management
Setting trends in China has led Southern Asset Management to sustained growth and new opportunities
Today, there are more than 140 mutual fund companies in China, and the number continues to grow. In this highly competitive market, only companies that provide sustained value over the years can garner the trust and favor of investors.
Founded in 1998, Southern Asset Management was among the first batch of standardized fund management companies in China. At the end of June 2020, total assets under management of the Shenzhen-based firm reached Rmb1.3 trillion; the size of its mutual funds exceeded Rmb700 billion and its number of clients rose to 130 million. The cumulative dividends paid to those clients amounted to more than Rmb124.1 billion.
In the development of China's mutual fund industry, Southern Asset Management played a leading role as an innovator and trendsetter, and its scale has always ranked within the top tier. The ‘secret’ of that long-term success sounds very simple: putting clients at the center of the company and sticking to the principle of investing for the long-term, for value as well as responsible investment. In China's rapidly changing market, this means adhering to the firm’s investment philosophy and refraining from pursuing short-term performance and quick profits, in order to fulfill the long-term interests of clients.
Southern Asset Management’s confidence comes from its strength in investment capabilities. The firm employs hundreds of experienced investment professionals, who explore market trends in search of the most robust investment opportunities, through in-depth research on macroeconomics, industries and company listings. Southern Asset Management identifies as a pioneer in the market, attracting top talents and allowing them to thrive within the firm.
At the end of June 2020, Southern Asset Management's mutual funds exceeded Rmb700 billion.
Southern Asset Management not only serves millions of individual investors, it also provides asset management services to many institutional investors. The firm has become an investment manager for the National Social Security Fund of China since 2002, and subsequently obtained the qualification to manage investment for Chinese Enterprise Annuity Funds in 2005. In 2016, Southern Asset Management was among the first group of companies to qualify as an asset manager for National Basic Pension Insurance Funds in China.
At the same time, the firm has established cooperation with many renowned investment institutions around the globe, including sovereign wealth funds, foundations, commercial banks, insurance companies, investment banks and other asset management firms.
The global partnerships not only attest to the investment capability of Southern Asset Management in the Chinese market, but also prove that the firm’s investment standards are in line with the global ones.
For example, the firm has fully integrated international ESG principles into its corporate governance and investment management activities. In June 2018, Southern Asset Management officially became a signatory of the United Nations Responsible Investment Principles (UNPRI); at the end of 2019, the firm launched its first ESG-themed equity fund.
The firm’s commitment and recent achievements in ESG have been well received by the market and media. Indeed, in June 2020, Southern won the ‘Best in Sustainable Investment’ award in Asiamoney’s 2020 China Green Finance Awards – another recognition in a success story that continues to grow.