Russell Investment, Ping An terminate China joint venture

After four years of partnership, Russell Investment Management and Ping An Insurance Group have terminated their investment joint venture, sources with direct knowledge of the situation said, the latest sign of friction between foreign fund managers and their Chinese partners.

Under the agreement, Chinese insurance and financial services heavyweight Ping An will buy all of Russell's 49 per cent stake in the joint venture, while the US asset manager will continue to do business in China via a wholly owned local entity, a source in Russell said.

"Russell is still committed to the Chinese market opportunity," the source said, without disclosing financial details. "Russell still believes that the multi-manager investment market in China is poised for future growth."

A second source said that Russell was "quietly pulling out" of the partnership because it felt it had benefited Ping An more than Russell.

Russell Investment Management declined to immediately comment when contacted by email but said it would issue a statement later.

Calls to Ping An spokespersons were not answered.