BlackRock get a billion dollars from Chinese mutual fund investors
Just one day after the Wall Street Journal published an op-ed by hedge fund billionaire George Soros criticizing BlackRock Inc. for its enthusiastic investments in China, the firm announced its latest success: getting Chinese investors to pile into its new mutual fund.
BlackRock Inc. is the world’s largest asset manager, with just over $9 trillion under management.
On August 30, the firm launched a set of mutual funds and other investment products aimed at Chinese consumers. This was the first time a foreign-owned company has been allowed to do so, and came just a few weeks after BlackRock recommended that investors greatly increase triple their allocations in Chinese assets.
Last night, BlackRock announced that it had raised 6.7 billion yuan ($1 billion) for its first China mutual fund.
- The fund attracted more than 111,000 investors.
- The firm closed fundraising days ahead of a September 10 deadline in order to start investing sooner, according to “a person familiar with the matter” cited by Bloomberg.
- BlackRock will have to compete for “yield-hungry Chinese retail investors in a crowded industry that’s dominated by local firms,” says Bloomberg, but the current market is enjoying “one of its strongest years.”
The news came just one day after George Soros published a piece in the Wall Street Journal calling BlackRock’s China play “a tragic mistake” and “bad investment that imperils U.S. national security.”
BlackRock responded to Soros’ comments with corporate folderol: “The overwhelming majority of the assets BlackRock manages are for retirement. BlackRock’s clients around the world — including many U.S. clients — seek a broad range of investments, including in China, to achieve their retirement and other financial objectives,” a spokesperson said, according to CNBC.
