Joint ventures vie for local investors
JPMorgan Fleming Asset Management?s Sino-foreign joint venture is set to launch its first open-ended fund. Last month, the joint venture was given approval from the China Securities Regulatory Commission for the launch. This approval also marked the official founding of the global asset manager?s joint venture with Shanghai International Trust and Investment Company, called China International Fund Management.
Everbright-Prumerica, a joint venture between Everbright Securities and US-based Prumerica Financial, is also set to launch its first open-ended fund, although details are yet to be released. These two joint ventures will be the ninth and tenth such set-ups to launch open-ended funds. Four further managers have received approval to launch new products and in June five new funds completed their fund raising.
China International Fund Management hopes to list the fund in August. The CIFM China Advantage fund will invest around 30% to 80% in China A shares, 20% to 50% in the China bond market and 0% to 20% in cash. Peter Alexander, founder of independent consultancy Z-Ben Advisors, says: ?If the markets continue to show weakness ? and adding that the summer season is a difficult time to raise funds ? I would hazard a guess that they should raise between Rmb1 billion and Rmb3 billion [$360 million]?.