China Life AMP Asset Management officially launches

07 November 2013   Category: News, Asia, Australia, China   By Hui Ching-hoo

China Life AMP Asset Management (CLAAM), a joint venture asset management entity formed between China Life Insurance Asset Management and Australia-based AMP Capital, was officially established on Wednesday (November 6).

The official launch follows on from the JV receiving approval from the China Insurance Regulatory Commission (CIRC) in September this year.

The JV is the first Mainland insurance asset management company to participate in China’s mutual fund business following the implementation of the ‘Measures for the Pilot Program of Establishing Fund Management Companies by Insurance Institutions’ in June.

AMP Capital is a founding shareholder, holding a 15% stake in CLAAM, with the remaining balance held by China Life Asset Management. Registered capital of the JV amounts to around 588 million RMB (US$93.3 million).

AMP Capital Chief Executive International and Head of Global Clients Anthony Fasso previously told Asia Asset Management that: “There are JVs you can enter with a higher percentage but most often these are with a smaller financial sponsor. Given the sheer size of this, it’s important to note that China Life is the single largest domestic institutional investor in China. We do expect this JV to be a very, very large one; particularly as it's being sponsored by an insurance company.”

Liu Huimin, president of China Life Insurance Asset Management, has been appointed as the managing director of CLAAM. The JV will be mainly engaged in fundraising, fund distribution, and asset management.