Vanguard excludes China in a big international batch

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Vangard, the second largest asset manager in the world, ruled out the re -entry of the fund industry in China, even at a time when the group seeks to accelerate its global expansion until after its largest market in the United States.

Chris McCisak, President of Fayy Financial Times, told the Financial Times that the group decided to withdraw from China two years ago because of a “mismatch” between its investment offers and the demand for local investors.

“One of the important learning for us was that the investment horizon for individual investors in China is still very short,” said Mcisaac.

“Vanguard’s offer … is a great offer for people who save for years and decades. There is really a kind of incompatibility, if you will, in investment prospects, and so we finally decided that it is not logical to participate in China today.”

MCISAAC added that the director of assets “ultimately ended the circumstances that were not correct in Vanguard in China at this stage, and I do not think in the near future.”

The Group of Funds, which has $ 10, closed under management, closed its small office in Shanghai in 2023 and sold its 49 percent share in the Robo-Edviser service with Gack MA’s Group.

However, the decision to withdraw from the second largest economy in the world comes as other large funds groups continue to expand the scope of joint funds to benefit from the growing pension industry in China and the rich population increasingly.

Vanguard’s resistance also emphasizes China’s resistance to the broader challenges it faces, even the mourners of the marketing and selling investment industry in the country.

“We are always open about different markets, but there are a lot of things that should be in place,” Mcisaac said, adding that Vanguard will monitor developments to consider future opportunities.

forefront It aims to grow in other international markets that already have the presence, including the United Kingdom, Europe, Canada, Latin America and Australia. The assets of the group under management outside the United States reached $ 788 billion in 2024, an increase of more than 70 percent over a period of four years.

The asset manager, founded by the famous investor Jack Bogle five decades ago, has provided low -cost “negative” funds that follow indicators as well as traditional investment funds, selling customers through financial advisors as well as for consumers through retail investment sites.

“International business has started more and more for the total institution’s strategy and (she) becomes more part of our growth,” said Mcisaac.

The group focuses on the expansion of the pension market in Australia, with “great aspirations to break the best 10” of the country’s high retirement.

In the United Kingdom, he said that the Vanguard personal investor site, which sells directly to individuals, has collected approximately 800,000 investors and $ 37 billion in management assets.

However, Vanguard withdrew from the UK’s financial planning market just two years later in 2023.

MCISAAC said at the time “an attempt to work with my leadership team to evaluate all the different markets in which we compete and the ways we compete with.