The US asset management giant decided earlier this year to shutter businesses in China and exit the advisory venture, one step closer to a complete retreat from the world’s second-largest economy where it once saw significant potential. By contrast, global competitors including BlackRock Inc. and Fidelity International Ltd. have been boosting their onshore presence with fully owned fund units betting on the nation’s economic growth and pension reform.
Vanguard Group Inc. unloaded its 49% stake in a robo-advisory joint venture with Jack Ma-backed Ant Group Co., accelerating its exit from China’s 29 trillion yuan ($5.44 trillion) mutual fund market.
Vanguard sold its minority stake to Ant, but will provide support until the end of the year to smooth the transition for clients, the Malvern, Pennsylvania-based company said in a statement Tuesday to Bloomberg News. Ant didn’t respond to an emailed query outside business hours. The price wasn’t disclosed.
