The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
On February 1, 2007, the China Securities Regulatory Commission (CSRC) granted approval for the fund house, to be known as ABC-CA, to begin business.
Yang Chun, vice director general at Agricultural Bank of China, will head the business as chairman. Hong Boh has been appointed general manager, while Yi Jie, most recently a fund manager of the Baokang Consumption Fund at rival French JV Fortune SGAM Asset Management, has joined as chief investment officer.
Credit Agricole has not received any product approval for a fund launch yet. However, it says it is confident that its first fund will draw on the Agricultural BankÆs vast branch network and large depositor base.
The JV will mark the sixth bank-owned fund house in China. Previously, of the other æbig fiveÆ banks in China: ICBC has set up ICBC Credit Suisse Asset Management; Bank of China has Bank of China Investment Management, which is a fund JV with Merrill Lynch Blackrock; Bank of CommunicationsÆ fund JV is a partnership with UK fund manager Schroders; and China Construction Bank has a fund JV with Principal Global Investors.
Performance among these bank JVs is varied and often disappointing. According to Z-Ben AdvisorsÆ data, ICBC-Credit Suisse ranks 21 out of 60 fund houses by market share, CCB-Principal ranks 31, and BOC International ranks 35. The best is Bank of Communications-Schroder which ranks 23 with Rmb55.4 billion of assets under management.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
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Norway's Oil Fund welcome Chinese proposals improving transparency and shareholder protection; HK's MPF assets surge 35% year on year; Korea's NPS commits $100m to TPG consortium to invest in taxi-hailing app; Poba commits W270bn to European property; Malaysia's EPF sees investment income rise 59% year-on-year in first quarter, and more.