Value Partners Group Ltd., an independent, Hong Kong-listed money management firm that established an extensive footprint in Greater China in recent years, is looking to plant its flag next in the U.S.
“In 2015, we will explore opportunities to establish our presence in the U.S.,” in part by leveraging Value Partners' strategic relationship with Affiliated Managers Group Inc., a Boston-based holding company that invests in asset management firms, said Timothy Tse, Value Partners CEO, in an e-mailed response to questions.
In November 2009, AMG announced it had taken a 5% stake in Value Partners and forged a “strategic partnership,” with an agreement “to work together on joint product development and strategic distribution opportunities.” Value Partners' latest annual report for its fiscal year ended Dec. 31, 2013 showed AMG holding a 7.81% stake.
Mr. Tse said this year, Value Partners will look to “strengthen our connection with AMG and local partners,” while considering “an on-the-ground team to facilitate client service functions” in the U.S.
One leading analyst of Asia's asset management industry predicts that move could pay off for a firm well placed to benefit as China's domestic A-shares market begins to move from an off-benchmark bet to a centerpiece of global emerging markets indexes in coming years.
Value Partners has enjoyed some success on the back of a fairly attractive package of institutional qualities, including a “stable team, pretty good performance and strong alignment of interests,” as the firm's portfolio managers invest alongside clients, said Peter Alexander, founder and principal of Z-Ben Advisors, a Shanghai consultant focused on investment-related opportunities in the Greater China region.
But they could do even better by “upping their profile a little ... hiring people to really go out and attack European and U.S. markets,” he said.
The firm — which added offices in Singapore in 2014, Beijing in 2013, Taipei in 2011 and Shanghai in 2009 — reported assets under management at the end of November of US$12.6 billion, up from US$10.5 billion at the end of 2013 and US$8.1 billion at the end of 2012.