1、 Western XX FMCBusiness Plan(2004-2007) to be further discussed(Confidential) 1ContentContent1、Profile of Western XX Asset Management Co.,Ltd. 2、Organizational Structure 3、Business Development Strategies 4、Roadmap 5、Assumptions and Forecast 6、Sales Breakdown in 200521、 Profile of Western XX Asset Ma
2、nagement Co.,Ltd. 3Registered Capital and Share StructureRegisteredCapital:RMB100millionRegisteredPlace:PudongDistrict,Shanghai,ChinaProposedShareStructure:WesternSecuritiesCo.,Ltd.RMB40millionOtherforeignsponsorRMB33millionShaanxiInvestmentGroupCo.,Ltd.RMB27million4Business ScopeFund management and
3、 investment advisory business in China as permitted by the applicable law. (incl. promotion, sale,issuance and management of investment funds)Other asset management business permitted by the applicable law.5Vision, Philosophy and StrategyVisionOne of the leaders in the great China wealth management
4、PhiloshophyInvestors benefits are everythingStrategyBrand, Service and Product all in one 6Business GoalGrow the JV into one of the top 5 FMCs in China, in the following three categories: Profitability Fund Performance Total AUM Professionalism 72、Organizational Structure8FMCs Organization Chart (at
5、 the beginning)CEO(1)CMO(1)CIO(1)CEO/COO(1)Sales& CustomerService(5)Marketing&Productdevelopment (3)Head of Compliance(1)R&D(5)Fund Manager(2)BODChairman(1)Trader(2)FundAccount-ing&TA(3)IT(2)Admin&HR(2)Auditing&Compliance(2)32 persons in the 1st year(proposed)9FMCs Organizational Chart (in 3 years )
6、 Customer Service Dept.CMOCIOCOOFund Manage-ment Dept.Fund dealing Dept.R&DDept.CEOTA IT Dept.HR&Admin. Dept.FundSales Dept.Marketing Dept.Strategy researchFinance engineer-ingIndustry& Company researchCentraldealing roomCall centerFundAccount-ingMarket-ing &Productdevelop-mentDirect saleAgency sale
7、OASystemmaintain-enceComplianceofficeAuditing&Supervis-ingInfo.disclosureHead of Compliance10 Structure of GovernanceBoard of directorsQualification examination and compensationcommitteeCEOThe shareholders meetingBoard of supervisorsThe compliance committeeHead of Compliance11 Structure of Business
8、OperationCEOInvestment decision committeeRisk control committeeFund appraisal groupCMOCIOCOOHead of Compliance123、Business Development Strategies13Adding long-term value DistributionChannelsClients baseLocal market acknowledgement22 branches, strategic cooperation with ICBC, CCB etc.700，000 individu
9、al clients, main institutional clients exceed 400 Excellent performance record, good reputation , Strong government support, Opportunities from the development of western China ProfessionalismInternational experienceProductdevelopmentInternational standard in FM. & research Organizational Know How;I
10、nternational management teamFund product innovation& importation14Outsourcing Value-addedbusinessMarket SegmentationProduct DesignPromotion/Fund DistributionResearch and DevelopmentFund Transaction/ Investment ManagementRisk Control/ Performance evaluation Non value- addedbusinessComplianceHR/ Admin
11、istration IT MaintenanceCustomer ServiceTA/ Fund accountingInternal AuditOutsourcing to the reliable third-party15Market SegmentationMarket analysis Market volume 182 billion units in 2003 Growth rate Aver. annual growth rate 50% New opportunities QFII,National Security Funds asset allocation Deregu
12、lation in fund issuance procedureCustomer segmentationInstitutional v.s. Individual clients 40%v.s.60%(estimate) Internal sales package A.M. clients transfer into funds holders 16 Customer Needs AnlysisReturnSafetyLiquidationGovernmentOrganizationLowHighMediumInsurance CompanyHighMediumLowState-owne
13、d EnterpriseLowHighMediumPrivate-owned EnterpriseMediumHighHighWealthy InvestorHighMediumLowOrdinary Investor LowHighLow17Identifying the needs of domestic customers Institutional clients : Fixed income,low risk,cash flow management Individuals clients : Growth,Small and middle cap,active management
14、Fee Structure varies according to client base Institutional clients: Low subscription and redemption feeIndividuals clients: Varies according to the period of holdingDeciding on distribution channels, depending on target groupsInstitutional clients : Direct sales/custodian bank recommendationIndivid
15、uals clients : Agency sales via banks, securities houses etc.Customer Segmentation 18Product StrategyPresent fund products Equity,bond,balance,hybrid,index, money market,guaranty etc.Competition products Deposit, fund biding insurance, asset management, trust, underground fund etc.Development plan M
16、eet the needs of main clients group Product frame Based on capital market environment Image/Brand19High Risk LowEquity Fund Low Return HighProduct FrameFund Type20Distrubution Distribution methodsDirect sales to main institutional clients Agency sales through agency banks, securities firms, China Unionpay etc.E-business through website and call centerDistribution channelsPresent channels banks, securities firms,internet etc.Channels selection 3-4 commercial banks,10 sec. firmsIncentive scheme fr
