13th Aug 2007 09:00
Prudential PLC13 August 2007 Embargo: 09.00 Monday 13 August 2007 PRUDENTIAL RAISES ITS STAKE IN CHINA FUND MANAGEMENT JOINT VENTURE Prudential plc ("Prudential") announced today that it has increased its stake inCITIC Prudential Fund Management ("CITIC Prudential"), its joint venture withCITIC Group in China, from 33 per cent to 49 per cent. The increase in stake has been approved by the China Securities RegulatoryCommission ("CSRC"), the Ministry of Commerce and the State Administration forIndustry and Commerce. Prudential and CITIC remain the primary shareholders with49 per cent each. Barry Stowe, chief executive of Prudential's operations in Asia, said: "We arepleased to have reached this latest milestone which underscores our continuedcommitment to our very successful partnership with CITIC, and the rapidlygrowing funds management industry in China. "Against our objective of building a material and profitable fund managementbusiness in China, CITIC Prudential will continue to capitalize on Prudential'sglobal investment management expertise as well as CITIC's strong distributioncapabilities and excellent local market knowledge." CITIC Prudential Fund Management was established in September 2005 and now hasmore than US$1.1bn in assets under management and advisory. In 2006, CITICPrudential launched an income balanced fund and an equity fund which raisedUS$380 million and US$428 million respectively, within one month of the launch. In May 2006, CITIC Prudential Fund Management also obtained approval from theCSRC to offer investment advisory services. It currently acts as investmentadviser to Prudential Asset Management Hong Kong for the latter's participationin China's domestic stock market under the Qualified Foreign InstitutionalInvestor scheme. The company has ambitious growth plans for its current and new areas of businesswhich include participation in the mainland's Qualified Domestic InstitutionalInvestor scheme and pensions. ENDS Enquiries: Media Investors/AnalystsCarole Butcher +44 20 7548 2466 James Matthews +44 20 7548 3561William Baldwin-Charles +44 20 7548 3719 Marina Novis +44 20 7548 3511 Notes to Editor: About Prudential Prudential plc is a company incorporated and with its principal place ofbusiness in England, and its affiliated companies constitute one of the world'sleading financial services groups. It provides insurance and financial servicesdirectly and through its subsidiaries and affiliates throughout the world. Ithas been in existence for over 150 years and has £256 billion in assets undermanagement as at 30 June 2007. Prudential plc is not affiliated in any mannerwith Prudential Financial, Inc, a company whose principal place of business isin the United States of America. Forward-Looking Statements This statement may contain certain "forward-looking statements" with respect tocertain of Prudential's plans and its current goals and expectations relating toits future financial condition, performance, results, strategy and objectives.Statements containing the words "believes", "intends", "expects", "plans", "seeks" and "anticipates", and words of similar meaning, are forward-looking. Bytheir nature, all forward-looking statements involve risk and uncertaintybecause they relate to future events and circumstances which are beyondPrudential's control including among other things, UK domestic and globaleconomic and business conditions, market related risks such as fluctuations ininterest rates and exchange rates, and the performance of financial marketsgenerally; the policies and actions of regulatory authorities, the impact ofcompetition, inflation, and deflation; experience in particular with regard tomortality and morbidity trends, lapse rates and policy renewal rates; thetiming, impact and other uncertainties of future acquisitions or combinationswithin relevant industries; and the impact of changes in capital, solvency oraccounting standards, and tax and other legislation and regulations in thejurisdictions in which Prudential and its affiliates operate. This may forexample result in changes to assumptions used for determining results ofoperations or re-estimations of reserves for future policy benefits. As aresult, Prudential's actual future financial condition, performance and resultsmay differ materially from the plans, goals, and expectations set forth inPrudential's forward-looking statements. Prudential undertakes no obligation toupdate the forward-looking statements contained in this statement or any otherforward-looking statements it may make. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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