Top executives of Merrill Lynch Investment Managers (MLIM), one of the world's largest managers of financial assets, foresees optimistic prospects for its joint venture (JV) in this emerging funds market, though holding only a small stake.

By joining hands with BOC International China Limited (BOCICL) and BOC International Holdings (BOCIH), MLIM obtained 16.5 per cent of the Bank of China International Investment Managers (BOCIIM) the fund management company set up here in June, reported China Daily on Wednesday.

BOCIIM recently launched a China Opportunities fund, its first product which has brought the internationally popular but new-to-China concept of thematic investing to the Chinese fund market.

"We are very keen to work with such a strong dominant partner and we have no desire to take control, unlike other foreign investors," said David Graham, managing director responsible for MLIM's business in Europe, the Middle East, Africa and the Asia-Pacific region.

Graham said in an exclusive interview the investor is very positive about the long-term return from the JV, supported by the combination of strong brands, managing talents and a market which is increasingly ordered and deregulated.

He revealed that MLIM has no desire to increase its shares in the JV or to establish other partnerships in China, showing its strong confidence rather than caution in its impact on the profitable future of the new body.

According to regulations of the Chinese Securities Regulatory Commission, foreign investors may hold up to 33 per cent of JVs.

The fund product BOCIIM is promoting seems to be borrowing MLIM's idea and experience in operating opportunities funds which cover Europe, Japan and the United States.

Graham said "globalization, industrialization, increasing consu-mer capacity, enterprise regrouping, reform and rising private enterprises in China" are the selling points of the new product which aims at individual investors and selective institutions as well as even qualified foreign investment institutions.

Source: China Daily