(February 13 – 10:00 ET) – Bank of Montreal has signed an agreement with Fullgoal Fund Management Company Ltd. of China today — pledging to work together to develop China’s potential in the mutual fund industry.

Under the agreement, the partners plan to develop an asset management company that will operate in the Chinese marketplace and in selected international markets. The intention is to create and distribute mutual fund products domestically in China; to introduce Chinese mutual funds to international investors; and to make available to Chinese investors a range of mutual funds from around the world.

The Chinese currently save about 40% of disposable income, representing 21% of GDP. It is expected that in five to ten years there will be $115 billion to $225 billion in assets available for management in China. Signing the agreement is the first step along the road to selling mutual funds following China’s imminent membership to the World Trade Organization and the subsequent liberalization of the country’s financial markets.

“This alliance opportunity is an ideal fit with Bank of Montreal’s strategy of accelerating growth in the most attractive areas such as wealth management, and focusing on one of the fastest growing markets of the global financial services industry,” said William Downe, vice-chairman of BMO.

Fullgoal Fund Management Company Ltd. is one of China’s largest mutual fund companies, with just $1.5 billion in assets under management. Registered in 1999, Fullgoal is one of only 10 fund management companies established with the approval of the China Securities Regulatory Commission.
-IE Staff