Ant Financial, Vanguard create JV for investment advisory services in China

Ant Financial Services, a Chinese fintech company owned by Alibaba Group, has created a joint venture (JV) with The Vanguard Group, a US asset management company to offer retail investment advisory services in China.

The joint venture will combine the technology of Ant Financial Services’ Alipay, a third-party mobile and online payment platform, with the expertise of Vanguard in investment management and advisory services. The joint venture will offer Chinese individual investors a fund investment advisory service, as approved by the China Securities Regulatory Commission (CSRC).

Eric Jing – Chairman and CEO of Ant Financial said: “Alipay is committed to making finance more inclusive for individuals and small and micro businesses through technology, and we’re partnering with financial institutions around the world to achieve this by building an open and technology-driven ecosystem.

“Combining our technology with Vanguard’s investment advisory expertise will make high-quality wealth management services simpler, smarter and more inclusive.”

Ant Financial, Vanguard create JV for investment advisory services in China. Image courtesy of Ant Financial.

The retail investment advisory services joint venture will provide tailored services for investors based on their investment goals, time horizon, and risk preferences, with minimum investments of RMB 800 (around $113) and accessible via Alipay and Ant Fortune, a wealth management platform operated by Ant Financial.

Tim Buckley – Vanguard CEO said: “Since opening our Shanghai office in 2017, we have been dedicated to bringing Vanguard’s way of investing to Chinese investors.

“This venture marries Vanguard’s time-tested investment philosophy and approach with Ant’s digital platform and technology to fundamentally change for the better how individuals in China invest.”

Ant Financial Services said that in the past, professional investment advisory services were accessible only to a few high-net-worth individuals in China.

Vanguard has $5.9 trillion worth assets under management across the world, as of 31 October 2019. Headquartered in Pennsylvania, the US asset management company offers 423 funds to 30 million plus investors in various parts of the world.