Aussie fund manger AMP Capital and China Life joined forces and will set up a fund management company. Analysts say the insurer/fund manager partnership will be fruitful.
Boasting a broader array of issuers based on credit fundamentals not just FX appreciation, the $25 billion offshore RMB bond market is catching the eye of insurers, among others.
While generally positive on the opportunities in Asia’s high-yield credit market, fund managers do have concerns, not least about the risks of CNH bonds.
Write-downs have cost China Life, Ping An and China Pacific Rmb30 billion ($4.4 billion) this year, not withstanding mark-to-market and foreign exchange losses.
The Chinese insurance company pays $3.32 billion for the stake in Fortis's asset management subsidiary, gaining access to a business with $378 billion of assets under management.
PingAn Group's CIO says Value Partners will be a preferred product provider for its QDII funds, adding he is comfortable with Hong KongÆs outlook in 2008.