China’s NCSSF hands 2 billion RMB mandate to CIC Trust
23 January 2013
By Hui Ching-hoo
China’s National Council for Social Security Fund (NCSSF) has reportedly given China Construction Bank Trust (CIC Trust) a 2 billion RMB (US$317 million) mandate to invest in an affordable housing project in Hunan province, according to a report from China Securities Journal on Tuesday (January 22).
Citing market sources, local media reported that the NCSSF is looking to diversify its outsourcing from traditional asset managers to various financial entities, including insurance firms and trusts. The pension fund is holding talks with insurance asset management firm Taikang Asset Management and China Resources Trust in regard to the outsourcing of its pension portfolio management.
A CIC Trust spokesperson said the outsourcing is expected to help the company build up its reputation while strengthening its investment capability.
The NCSSF currently has 18 delegated asset managers and four custodian banks, which includes the 12 foreign fund managers the pension appointed last July to oversee its 13 mandates.
The NCSSF has raised its exposure to properties, infrastructure and power projects. The fund invested 1 billion RMB in an affordable housing project in Jiangsu province last July and invested 2 billion RMB, for a 5.32% stake, in state-owned power company China Guodin last December.
More News >
Discuss: China’s NCSSF hands 2 billion RMB mandate to CIC Trust