On January 18th, BlackRock Think Tank released its investment outlook for 2024. It is pointed out that the situation has undergone structural changes this year, and the US economy is in a trend of slowing growth, facing higher inflation and interest rate levels, as well as a significant increase in debt levels. In the new macro environment, "consistency" in investment is no longer effective, and more flexible investment policies may lead buy and hold strategies by a much greater margin.
Earlier, asset management giant BlackRock announced a series of personnel appointments in the Asia Pacific region. On January 13th, BlackRock announced the appointment of Susan Chan as the head of the Asia Pacific region, while Andrew Landman and Hiroyuki Shimizu were appointed as deputy heads of the Asia Pacific region. This appointment will take effect immediately. Subsequently, on January 15th, BlackRock announced its executive structure for the China region: appointing Fan Hua as the head of BlackRock China and Zhang Pengjun as the general manager of BlackRock Jianxin Wealth Management. This appointment will officially take effect after regulatory approval.
It is worth noting that BlackRock also poached former National Fund Manager Wang Dengfeng. According to the news, Wang Dengfeng, the fund manager of Tianhong Yu'ebao who has been managing "Yu'ebao" for 10 years, has joined BlackRock Jianxin Wealth Management and is proposed to serve as the Chief Fixed Income Investment Officer. This appointment will take effect after regulatory approval.
Fan Hua's appointment as the new head of BlackRock China
On January 13th, BlackRock announced two personnel appointments for the Asia Pacific region. Appoint Chen Huilan as the Asia Pacific Regional Manager, based in Hong Kong, China. Former Asia Pacific Regional Manager Rachel Lord will be transferred to London as the International Business Manager of BlackRock. Meanwhile, Andrew Landman and Hiroyuki Shimizu were appointed as Deputy Directors for the Asia Pacific region. The above appointment will take effect immediately.
According to the data, Chen Huilan has over 30 years of experience in the financial services and asset management industry, and has held leadership positions in capital markets, trading, investment, and customer business. After joining BlackRock in 2013, she served as the Head of Capital Markets and Products for iShares Asus Asia Pacific, as well as the Head of ETF and Index Business. At the same time, she has also led BlackRock's onshore business development in China and served as a member of BlackRock's highest decision-making organization, the Global Executive Committee. After this appointment takes effect, she will serve as the Deputy Head of BlackRock Asia Pacific, Head of Greater China, and Head of the Asia Pacific Trading, Liquidity, and Lending Team.
On January 15th, BlackRock announced Fan Hua as the head of the China region, replacing Tang Xiaodong who resigned in June 2023. After six months, BlackRock finally welcomed a new head of the China region.
According to the information, Fan Hua graduated with a bachelor's degree from Peking University and a doctoral degree from the School of Finance at Columbia University in the United States. She has over 25 years of experience in the investment industry and has served as the Director of Asset Allocation, Bond and Absolute Returns at CIC; Head of Global Risk Modeling at Goldman Sachs; Chief Investment Officer of CMB Wealth Management, etc. Later in 2022, he joined BlackRock Credit Management as the General Manager of BlackRock Credit Management. During her tenure, she vigorously developed fixed income products and increased the company's scale to nearly 15 billion yuan. She played an important leadership role in the company's business expansion and the enhancement of the strength of the executive team.
After this appointment takes effect, Fan Hua will be responsible for overseeing BlackRock's main business in China, including BlackRock Fund Management Co., Ltd. (hereinafter referred to as "BlackRock Fund"), BlackRock Jianxin Wealth Management, and QDLP business from domestic fundraising to overseas markets.
In the same press release, BlackRock also announced the appointment of Zhang Pengjun as the General Manager of BlackRock Jianxin Wealth Management. Previously, Zhang Pengjun was the Deputy General Manager of BlackRock Fund. On July 1, 2023, BlackRock Fund announced that Zhang Pengjun had resigned from the position of Deputy General Manager due to internal work arrangements. Half a year later, Zhang Pengjun took over Fan Hua as the General Manager of BlackRock Wealth Management's subsidiary.
According to public information, Zhang Pengjun is a licensed Financial Analyst (CFA) with a Master's degree in Business Administration from the Rothmann School of Management at the University of Toronto and a Master's degree in Economics from Northeastern University of Finance and Economics. Previously, he served as the Chief Operating Officer of the Investment Banking Department at UBS Securities Limited, Vice President of Wealth Lyon Securities Limited, Senior Director of Zhonghong Life Insurance Co., Ltd., Senior Financial Manager at Imperial Commercial Bank of Canada, Strategic Analyst on the Board of Directors of Fuguo Fund Management Co., Ltd. (Shanghai), and Head of the Business Department of Shenyin Wanguo Securities Co., Ltd. (Dalian). Subsequently, he joined BlackRock as the General Manager, Legal Representative, and Chief Operating Officer of BlackRock Investment Management (Shanghai) Co., Ltd. He also served as the General Manager, Legal Representative, Chief Operating Officer, and Compliance Risk Officer of BlackRock Overseas Investment Fund Management (Shanghai) Co., Ltd. He also served as the Deputy General Manager, Chief Operating Officer, and Chief Information Officer of BlackRock Fund.
BlackRock stated in the announcement that Zhang Pengjun has been a core member of BlackRock China's leadership team for the past 8 years, currently leading and supporting BlackRock's overall domestic business management and operations team, and serving as the chief liaison for cooperation with China Construction Bank.
Regarding this appointment, Chen Huilan, the head of BlackRock Asia Pacific, said, "BlackRock's related businesses are led by some of the best leaders in the industry, who bring customers profound market insights and industry expertise. The appointment of Fan Hua and Zhang Pengjun is crucial for us to seek sustained business growth, and we are committed to becoming China's leading global asset management company."
Former "Yu'ebao" fund manager joining
It is worth noting that according to media reports, Wang Dengfeng, a fund manager who had managed "Yu'ebao" for 10 years and had 745 million holders at its peak, has joined BlackRock Credit Management since leaving in September last year and is planning to serve as the Chief Fixed Income Investment Officer. It is understood that this appointment will officially take effect after regulatory approval.
According to the data, Wang Dengfeng was the first fund manager of Tianhong Yu'ebao Money Market Fund, with a management time of 10 years. And this fund is the largest public fund product in the entire market. According to the fund's third quarter report data, as of the end of last year's third quarter, the latest scale was 663.995 billion yuan. From May 29, 2013 to June 9, 2021, Wang Dengfeng was responsible for managing Tianhong Yu'ebao separately, with a return of 29.67% during his tenure. Subsequently, the fund was jointly managed by multiple fund managers.
The joining of Wang Dengfeng this time is expected to inject a shot of adrenaline into BlackRock's fixed income business.
In fact, as the first foreign-owned public offering in China, the returns of products under BlackRock Fund are not very good. According to Tiantian Fund Network, BlackRock Fund was established on September 10, 2020. As of the end of 2023, its seven funds (calculated by combining A/C shares) have a total size of 8.679 billion yuan.
Among these 7 public funds, there are 5 hybrid funds and 2 bond funds. Among them, only BlackRock Anrui has been holding positive returns since its establishment for 30 days, and this product has been established for less than a month. All other products have fallen below their net value since their establishment. The largest decline was in BlackRock China's New Horizon Hybrid, with its AC products falling 44.55% and 45.20% respectively since its establishment on January 18th.
For foreign monks like BlackRock who are laying out their presence in the Chinese market, localization is a daunting challenge.
Lin Jiayi, General Manager of Xuanjia Fund, analyzed to a reporter from Huaxia Times that it is extremely difficult for foreign institutions to enter a new market and localize. The localization cost of a company, its strategic alignment, and its understanding of the local economic and financial cycles are all crucial.
"Generally speaking, foreign-funded institutions have advanced management models, mature investment strategies, and strict compliance risk control systems, with prominent advantages in professional capabilities. However, at the same time, their disadvantages are also obvious: on the one hand, foreign-funded institutions are not familiar with local market channels, making it difficult to raise funds; on the other hand, copying the overseas investment research model can easily lead to the phenomenon of 'not adapting to local conditions', resulting in the loss of effectiveness of the strategy." Yao Xusheng, a wealth management partner of PaiPaiPai Network, emphasized to a reporter from Huaxia Times.
Foreign institutions need to make efforts in multiple aspects to open up the Chinese market. Yao Xusheng stated that in terms of internal investment and research, foreign institutions cannot simply copy overseas models and experiences, but should make adjustments based on the market environment in China; In addition, it is necessary to actively study the development laws of the Chinese market and develop more competitive localization strategies; At the same time, it is necessary to establish diversified cooperative relationships with various licensed financial institutions, open up channels, and enhance the ability to raise funds.
Lin Jiayi believes that foreign-funded institutions should not only reduce costs, but also improve efficiency in localization, strengthen incentives for core localized employees, and research and iterate effective strategies suitable for the Chinese market and the current cycle.