Topic: Independent Wealth Managers in China: the Largest Mutual Fund Distributors
Author: InvesTAO Research
Independent wealth managers: the new rising star in China
There are three major groups of wealth managers in China, competing for a total market size of US$42T. Among the groups, Independent Wealth Managers have the built-in affinity to Internet and is one that takes the most attention recently.
Distribution: fast-growing household business, less high-end competitive
Independent wealth managers are competing for fund distribution, accounting for 32% of non-direct mutual funds sales. However, unable to fully crack the market barrier from competitors, they lack the coverage of the HNWIs and institutional clients
Investment advisory: the new growth for the wealth managers
Independent wealth managers are leveraging on FinTech and AI for their investment advisory services but are still in a hard transition from sell-side model to buy-side advisor business.
A more diversified and digital wealth management experience
• Household preference for wealth management products could increase significantly.
• Better digitization in distribution and investment advisory can be expected.