CIMB-Principal Asset Management Bhd, the first asset management company in Malaysia to have received the Renminbi Qualified Foreign Institutional Investor (RQFII) licence in March 2017, was recently awarded an additional quota of RMB1 billion (approximately USD150 million) by the China State Administration of Foreign Exchange.<\/p>\n
The RQFII licence allows investors to gain direct access to the China A-Shares market, otherwise accessible to only China on-shore investors.<\/p>\n
The initial quota of RMB600 million (approximately USD100 million) was fully utilised just after two months through the CIMB-Principal China Direct Opportunities Fund launched in March 2018.<\/p>\n
The Fund is an equity growth fund that aims to provide capital appreciation over the medium to long-term and will invest a minimum of 70 per cent of its net asset value (NAV) in China A-Shares focusing mainly on small and mid-cap companies with good growth potential, while the remaining 30 per cent of its NAV will be invested in liquid assets.<\/p>\n
\u201cAchieving our target fund size of USD100 million just after two months speaks volumes of investors\u2019 bullish long-term view of China\u2019s growth story.<\/p>\n
\u201cIn response to the overwhelming demand for our maiden China-focused Fund, we are pleased to provide investors with this golden opportunity \u2013 through the additional RQFII quota of RMB1 billion \u2013 to benefit from the growth prospects of China\u2019s \u2018new\u2019 economy and the world\u2019s second largest equity market.<\/p>\n
\u201cThe visibility of China A-Shares has also been greatly enhanced following its inclusion in the MSCI global indices on June 1,\u201d said CIMB-Principal chief executive officer, Munirah Khairuddin<\/p>\n
Munirah added, the RMB1 billion additional quota awarded to CIMB-Principal provides them with a strong advantage to strengthen our customer value proposition, while cementing their leadership position in the asset management industry, both in Malaysia and regionally.<\/p>\n
Speaking from CIMB Bank\u2019s viewpoint as the distributor of the Fund, Gary Yong, Regional Head of Wealth Management, CIMB Bank Bhd said:, \u201cWe achieved RM200 million (approximately USD50 million) in sales during the IOP of the Fund, our highest sales volume year-to-date.<\/p>\n
\u201cThis is a testament of not only CIMB\u2019s strong distribution network of 269 branches nation-wide and capabilities in offering relevant financial solutions that meet the demands of today\u2019s investors, but also the solid growth prospects of the Fund.\u201d<\/p>\n
The benchmark for the Fund is Shanghai Shenzhen CSI 500 Index, one of the fastest growing segments in China\u2019s economy. It provides exposure to small and medium companies of the new
economy which may have potential to be global players.<\/p>\n
The Fund is co-managed by CCB Principal Asset Management Co. Ltd. (\u201cCCB Principal\u201d), one of China\u2019s fastest growing asset management companies and backed by China Construction Bank, US-based Principal Financial Group, and China Huadian Capital Holdings Company Limited. As at March 2018, CCB Principal recorded USD220 billion of assets under management.<\/p>\n
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CIMB-Principal Asset Management Bhd, the first asset management company in Malaysia to have received the Renminbi Qualified Foreign Institutional Investor (RQFII) licence in March 2017, was recently awarded an additional quota of RMB1 billion (approximately USD150 million) by the China State Administration of Foreign Exchange. The RQFII licence allows investors to gain direct access to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[],"class_list":["post-1816","post","type-post","status-publish","format-standard","hentry","category-markets"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=1816"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1816\/revisions"}],"predecessor-version":[{"id":6462,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/1816\/revisions\/6462"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=1816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=1816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=1816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}