(Bloomberg) — From BlackRock Inc. to Vanguard Group, global asset managers have been dazzled by the promised riches of China’s $3.4 trillion mutual fund industry. However, they’re now learning just how fierce the local competition will be.
Funds backed by international firms raised $470 billion from retail investors in the first eight months of the year, less than half the $967 billion haul of their 100-plus Chinese rivals, according to data compiled by Morningstar and Bloomberg. Of the top 10 biggest funds raised this year, only two were backed by foreign companies.
Foreign companies are having to grapple with how little their size and global reputation matter in a market infamous for investors jumping from fund to fund in search of the next big thing. Domestic rivals have pressed their home-field advantage, picking up a lion’s share of almost $6 billion in fees generated in the first-half alone.