By Svea Herbst-Bayliss and Jonathan Stempel
NEW YORK (Reuters) - Bank of New York Mellon Corp (BK.N: Quote, Profile, Research, Stock Buzz), one of the world's biggest asset managers, wants to manage more money for Chinese investors as part of its push to generate half of its revenue outside the United States, its chief executive said.
"We are not huge in China today but certainly over longer term we want to be," Chief Executive Robert Kelly said at the Reuters Finance Summit in New York on Tuesday.
Like other U.S. money managers, Bank of New York Mellon is pushing into China now that its government has allowed foreign asset managers to oversee investments.
Kelly also sees a chance to win business from servicing, or providing back-office services to institutional clients. The bank estimates its $21 trillion of assets under custody is one-seventh of the $140 trillion worldwide. Assets under management total $1.1 trillion, among the top 10 worldwide.
"I think the opportunity is huge, over the long term, in China, given the size of the workforce, the growth in GDP (gross domestic product), the size of the savings rate, as well as the investment pools that are being created," he said.
Kelly became chief executive of Bank of New York Mellon in July, when Bank of New York Co completed its $18.3 billion merger with Mellon Financial Corp, which he had led. Thomas Renyi, who ran Bank of New York, became chairman.
Bank of New York Mellon may be a step ahead of rivals. Last month it attracted $4 billion into the Southern Global Enhanced Balanced Fund, after receiving $8 billion of interest, Kelly said.
The product is the first overseas stock fund launched under China's Qualified Domestic Institutional Investor scheme, which is partly aimed at curbing gains in China's yuan <CNY=>. Bank of New York said it subadvises the fund on behalf of China Southern Fund Management Co. Continued...
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