January 12, 2011

BNY Mellon Asset Servicing Awarded Global Custody Mandate for New QDII Fund


Returning confidence in QDIIs will see rise in fund launches in 2011

SHANGHAI, 12 January 2011 — BNY Mellon Asset Servicing, the global leader in securities servicing, has been selected by China Construction Bank ("CCB") as the global custodian for the upcoming QDII fund in China to be launched by Yinhua Fund Management Company ("Yinhua"). The new Fund will be called Yinhua Anti-Inflation Theme Fund (LOF).

"With the State Administration of Foreign Exchange recently announcing it has granted quota to 87 QDII investors to invest $66.9 billion globally as of the end of September, is a clear that confidence in QDIIs is returning after being out of favour for two years," said Chong Jin Leow, head of Asia, BNY Mellon Asset Servicing. "In 2011 we expect to see a steady increase in the number of QDII launches if those already in the development process is a true indication of future trends."

BNY Mellon was awarded the very first global custody mandate for a QDII fund in 2007 and today continues to be the leader with the largest market share in this funds segment in China. BNY Mellon's Leow, adds: "China is fast becoming a major global centre with an increasingly sophisticated investment market. To help to support China's growth, BNY Mellon is investing locally in its technology to enable it to become a stronger partner to Chinese institutions, bringing its global experience to support inflation protected theme products and advise on the set up of Exchange Traded Funds (ETFs) and Fund of Funds structures, for example, to banks and asset managers in China."

Yinhua is headquartered in Beijing and has offices in Shenzhen and Shanghai. Founded in 2001, Yinhua has over RMB85 billion of assets under management as of 31 December 2010 and was one of the first companies to receive a QDII license (Qualified Domestic Institutional Investor) licence in 2007, enabling it's clients to invest in international markets.

BNY Mellon has had a presence in mainland China for over 15 years with branches in Shanghai and Beijing. BNY Mellon provides a wide variety of products and services to Chinese institutional investors including asset management, asset servicing, treasury services and depositary receipts.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $24.4 trillion in assets under custody and administration, $1.14 trillion in assets under management, services $11.6 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. Additional information is available at www.bnymellon.com.