Chinese insurer Ping An Group said on Monday that its offshore asset management unit launched its first Undertakings for Collective Investment in Transferable Securities umbrella fund to provide global investors opportunities to invest in China’s equity and fixed income markets.
The Ping An of China Asset Management Fund and its four key sub-funds, which will be managed by Ping An of China Asset Management (Hong Kong), are set to be based in Luxembourg. The funds will also apply for “mutual recognition” by Hong Kong’s Securities and Futures Commission for public offering, the company said.
The UCITS vehicle will leverage Ping An’s “systematic, quantitative and scientific investment methodologies” to provide foreign investors “a wide range of investment opportunities” in the region with “flexibility and efficiency,” the company said.
“We look forward to launching more products and services that meet global investor demands,” said Hoi Tung, a Ping An Group investment committee member and chairman and CEO of Ping An Overseas Holdings.
The sub-funds include the China A-Shares AI Multi-Factor Fund, which uses artificial intelligence to pick stocks and optimize equity portfolios and the China Green Bond Fund, which invests in the emerging green bonds markets in the region. The other sub-funds are the China High-Yield Private Strategy Bond Fund, which targets high-yield corporate bonds and debt securities, and the Emerging Market Income Fund, which invests at least 60% of its net assets in debt securities issued by government agencies and companies that have their main businesses in emerging market countries.
“Capitalizing on the geographic advantage of Hong Kong,” the company’s asset management arm “connects China with the rest of the world,” said Chi Kit Chai, head of capital markets and chief investment officer at Ping An of China Asset Management (Hong Kong).
“We are committed to help our onshore Chinese clients to invest globally and our global clients to invest in China,” Chai said, adding that the company is seeing a “strong” demand for assets based in China since the region can offer “both pickup in yields and portfolio diversification.”