Funds News
- Fortis fund venture obtains QDII nod
Date: 27-Aug-2007 Sources: (Shenzhen Daily)
FORTIS' China fund management joint venture said Friday it had won the government's approval to help clients invest abroad under the Qualified Domestic Institutional Investor (QDII) program.
Fortis Haitong Investment Management Co. still needs to apply to the foreign exchange regulator for an investment quota before it can use its QDII license to launch a fund product.
Tian Rencan, chief executive of the Shanghai-based fund venture, declined to estimate how much money the company would raise through its first QDII fund product, but said market demand for such products was huge on the mainland.
'We want to help mainland investors to diversify their investment risks and we believe there is huge demand for such wealth management services,'Tian said at a media briefing. 'As an investor, you should never put all your eggs in one basket.'
Several fund houses, including Harvest Fund Management Co. and China International Fund Management Co., have obtained such licenses.
Harvest Fund is 20 percent-owned by Deutsche Bank AG while China International is a joint venture between JP Morgan and the Shanghai Municipal Government.
Last month, China International said it aimed to raise about US$1 billion for its first QDII fund product, which was awaiting final approval and expected to invest in Asian stock markets.
However, so far only one fund management company, Huaan, has launched a QDII product since the government adopted the program last year to encourage capital outflows and broaden investment alternatives for local investors.
The government has granted QDII investment quotas of about US$15 billion for 20 banks, US$5.2 billion for insurance companies and US$500 million for Huaan.
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