BNY Mellon Western Fund posts $3.1 million loss
30 July 2014
Category: News, Asia, China, Global, USA
By Hui Ching-hoo
BNY Mellon Western Fund Management, the former Mainland China asset management joint venture (JV) between BNY Mellon and Western Securities, succumbed to a loss of 19.39 million RMB (US$3.1 million) in the first half, according to a statement to the Shenzhen Stock Exchange.
The firm has suffered consecutive deficits since its inception in July 2010, with an accumulated loss of around 162 million RMB. Total AUM of its four mutual funds amounted to just 330 million RMB and the firm was ranked 77 out of 83 asset managers in China.
The long-standing dismal performance led BNY Mellon to divest from the JV in May, selling its entire 49% stake in the firm to Shanghai Leadbank Asset Management.
Separately, Western Securities recorded a realised profit of 7.49 million RMB for its in-house asset management business for the first half, against a loss of 1.29 million RMB in the corresponding period a year earlier. Western Securities said the growth was mainly due to a rise in launches of dedicated asset management plans.