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AMP Capital enters China funds management space with China Life JV

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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 Life is 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 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 AUD0.8trn in 2013 growing at 15 per cent per annum to reach almost AUD1.5trn in 2017.
 
AMP chief executive officer Craig Dunn (pictured) says 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," says Dunn. "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.”
 
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.
 
In 2006 the two companies cooperated in Qualified Foreign Institutional Investor (QFII) investments and subsequently 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.

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