China Life AMP Asset Management launches first China mutual fund
23 January 2014
Category: News, Asia, China
By Hui Ching-hoo
China Life AMP Asset Management, a joint venture between AMP Capital and China Life Asset Management, has launched its inaugural mutual fund – the China Life AMP Money Market Fund.
The fund raised 11.9 billion RMB (US$1.89 billion) during its IPO period earlier this month. The minimum investment for investors is 1,000 RMB.
Anthony Fasso, CEO, international, at AMP Capital Investors, tells Asia Asset Management that the mutual fund mainly invests in a range of short-term investments such as certificate deposits and cash. “We leverage on our partner’s expertise in fixed income and their strong on-the-ground resources. The JV decides to launch the money market fund in a bid to take advantage of the country’s growing wealth as well as favourable interest rate conditions,”
Mr. Fasso also discloses the JV has a number of other products in the pipeline for this year, which will be revealed in due course.
AMP Capital Chief Executive Officer Stephen Dunne, adds: “The launch of China Life AMP Asset Management late last year represented a great step forward for AMP Capital in Asia, one of our key markets. I’m delighted that through the dedication of the joint venture team, we’ve been able to bring the China Life AMP Money Market Fund to Chinese investors just months after the JV was incorporated. This shows the commitment both organisations have to making it a success.
“The China Life AMP Money Market Fund analyses macroeconomic factors, monetary policy and credit supply to make a judgement on the trend of the yield curve while taking into consideration liquidity and the risk profile of different instruments. It will appeal to investors who are looking for both yield and liquidity.
We are very pleased with the level of support we’ve seen and look forward to providing Chinese domestic investors with additional investment products down the track.”
The rapid growth of wealth management in China presents significant opportunities for funds management. Total AUM in the mutual fund industry in China reached US$704 billion in 2013, according to the Asset Management Association of China, and is expected to grow at 15% per annum to reach US$1.408 trillion by 2017.
AMP Capital holds a 15% stake in the JV while China Life Asset Management owns the rest. It is China Life’s first joint venture in mainland China with a foreign fund management partner.
China Life AMP Asset Management offers retail and institutional investors in China access to leading investment solutions, initially in domestic listed equities and fixed income, and benefits from being the most highly capitalised fund management company in mainland China. AMP and China Life Insurance (Group), China’s largest insurer, have enjoyed a formal relationship for nearly eight years and signed a Memorandum of Understanding for strategic cooperation in August 2009.