CMB Wealth Management (CMBWM) and JP Morgan Asset Management (JPMAM) have started marketing a target date fund.
The Zhao Zhi Wu You Target 2035 Fund is the first collaborative product between CMBWM and JPMAM after their expanded strategic partnership, which saw JPMAM take a 10% stake of CNY2.67bn (£300m, $410m, €344m) in the Shenzhen-based wealth manager in March 2021.
The fund will invest in “comprehensive and diversified global assets”, and it is the first target date fund adopting a “glide path” design in China’s bank wealth management space, according to the firms.
Target-date funds — also known as a life-cycle products — are mutual funds or ETFs structured to grow assets in a way that is optimised for a specific time frame. The structuring of these funds addresses an investor’s capital needs at some future date, and typically, investors will use a target date fund to apply to their onset of retirement.
Details
“The target-date fund launch is designed to serve the growing need of onshore retail investors for long-term retirement investing, which has been a strategic growth area in the onshore market,” a JPMAM spokeswoman told our sister publication Fund Selector Asia.
Their asset allocation is usually designed to gradually shift – or take a glide path — to a more conservative profile to minimise risk when the target date approaches. The CMBWM fund can invest in equities, fixed income, commodities and derivatives, according to its prospectus.
JPMAM’s joint venture, China International Fund Management (CIFM), acts as the investment adviser for the product, which will be open for subscription to the public from 30 March to 6 April. China Merchants Bank will distribute the fund.
The annual management fee is 0.45% and the subscription fee is 1.5%, said the spokeswoman.
It is the second collaborative product since China Merchants Bank (CMB), CMBWM and JPMAM first formed a strategic partnership in 2019. The first product was a China income strategy, launched last year.
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