French financial group Societe Generale is establishing a joint venture fund management company with Fortune Trust & Investment and it soon hopes to launch its first fund, the Financial Times said. Fortune SGAM Fund Management's proposed umbrella-style fund would comprise three sub-funds, one based on equities, one based on bonds and one a balance of the two. The company intends to raise Yn3bn after marketing begins.
Societe Generale paid 4m for its 33 per cent stake in the joint venture, the maximum stake allowed under the regulations governing China's accession to the World Trade Organisation. It will look to raise its stake to 49 per cent when the rules allowed. Fortune is a unit of Baosteel of Shanghai, China's biggest steel maker, which has been expanding its presence in the financial sector.