The China Life AMP Money Market Fund invests in a range of short-term investments such as liquid short-term bonds and cash deposits on behalf of both retail and institutional customers. The minimum investment for investors is RMB1,000. The fund raised RMB11.9 billion (A$2.2 billion) from its initial public offering period earlier this month, highlighting the opportunity in the Chinese market.

AMP Capital Chief Executive Officer Stephen Dunne said: “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 joint venture 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 assets under management in the mutual fund industry in China reached A$0.8 trillion in 2013, according to the Asset Management Association of China, and is expected to grow at 15 per cent per annum to reach A$1.6 trillion in 2017.

AMP Capital holds a 15 per cent stake in the joint venture while China Life Asset Management Company Limited holds the rest. It is China Life’s first joint venture in mainland China with a foreign partner in funds management.

China Life AMP Asset Management Company Limited will offer 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 funds management company in mainland China.

AMP and China Life Insurance (Group) Company, China’s largest insurer, have had a formal relationship for nearly eight years and signed a Memorandum of Understanding for Strategic Cooperation in August 2009.

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AMP to offer investors in China access to investment solutions

AMP Capital is to establish a funds management company in China with China Life Asset Management Company, a subsidiary of China Life Insurance (Group) Company, China’s largest insurance group, institutional investor and corporate pension manager.

China Life AMP Asset Management Company Limited will offer retail and institutional investors in China access to leading investment solutions initially in domestic listed equities and fixed income.

AMP Capital will be a founding shareholder holding a 15 per cent stake in China Life AMP Asset Management Company Limited with the balance to be held by China Life Asset Management Company. The joint venture has received regulatory approval from the China Insurance Regulatory Commission (CIRC), and is subject to regulatory approval by the China Securities Regulatory Commission (CSRC).

China Life AMP Asset Management Company Limited will be China Life’s first joint venture in mainland China with a foreign partner in funds management.

AMP Capital and China Life Asset Management Company are the first to take advantage of new regulations which came into effect 21 June 2013, allowing insurance companies in China to establish funds management companies offering public mutual funds to retail and institutional investors.

The sweeping new reforms are expected to provide investors easier access through new distribution channels and drive more innovative investment solutions to meet the evolving needs of Chinese customers in this rapidly growing savings market.

The rapid growth of wealth management in China presents significant opportunities for funds management companies. Total assets under management in China’s mutual fund industry is expected to reach A$0.8 trillion in 2013 growing at 15 per cent per annum to reach almost A$1.5 trillion in 2017¹ .

AMP Chief Executive Officer Craig Dunn said China is an important part of AMP’s growth strategy which is focused on expanding internationally through its funds management business AMP Capital.

“A funds management joint venture in China is a strategically significant move for AMP, giving us direct access to the world’s second largest and fastest growing major economy ² ,” Mr Dunn said.

“Both China Life and AMP share a common heritage of being among the most well-known and respected financial services brands in our home markets.

“The funds management joint venture represents the commercialisation of our Memorandum of Understanding (MOU) with China Life and is the ideal balance of our mutual strengths and capabilities,” Mr Dunn said.

AMP Capital has developed a reputation for delivering high quality investment solutions for global pension funds, institutional investors and retail investors with expertise in key asset classes such as real estate, infrastructure, equities and fixed income.

AMP Capital Chief Executive Officer Stephen Dunne said: “China Life Asset Management Company brings a strong brand and leading market position, significant distribution capability and a deep understanding of customer needs in a dynamic market to the joint venture. While AMP Capital has extensive expertise in product development, risk management, governance expertise and investment and research which will be shared with the joint venture.

“Having an on-the-ground presence is vital to building a sustainable position as an onshore player and together China Life Asset Management Company and AMP Capital have the combined capability to succeed. We’re really excited about being part of the rapid growth of funds management in China,” Mr Dunne concluded.

With this joint venture AMP Capital now has significant institutional and retail reach in three of the world’s largest savings and pension markets – Australia, China and Japan.

AMP has had a presence in China since 1997 and AMP and China Life have had a formal relationship for nearly eight years.

The relationship became a closer, deeper relationship in 2006 when the two companies cooperated in Qualified Foreign Institutional Investor (QFII) investments and subsequently when China Life and AMP entered into the MOU for Strategic Cooperation in late 2009 which encompassed areas for partnership in funds management and pensions.

Since the signing of the MOU, both AMP Capital and China Life have been actively exploring mutual cooperation in a number of areas while exchanging investment expertise and experience.

– See more at: http://media.amp.com.au/phoenix.zhtml?c=219073&p=irol-newsArticle&ID=1851093&highlight=#sthash.d17lpAIc.dpuf

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