Asset management firms see potential in pension funds

One month after the central regulator gave the green light to pension target securities investment funds, asset management companies have sped up their growth in the market.

Two pension target securities investment fund products from Shanghai-based Zhong Ou Asset Management and Beijing-based Manulife Teda Fund Management started to be sold to the public on Monday. Both products will adopt the fund of funds strategy, with a portfolio that consists of multiple underlying mutual funds and each of those underlying funds having an expense ratio.

The product sold by Manulife Teda Fund Management is the first target-risk fund of its kind in China. Public information shows that half of its investment will be allocated to equity assets and the other half to non-equity assets. Qualified domestic institutional investors funds and funds mutually recognized by the Hong Kong and Chinese mainland markets are also included for this product.