China's state pension fund and self-regulating fund body welcomed the launch of the first funds of funds, but cautioned asset owners to use the vehicles for long-term diversification.
In the second of a two-part story, China's fund regulator wants to help fund of funds proliferate, but relatively few onshore firms have enough fund variety to create the products.
In the first of a two-part feature, the country's fund regulator wants to promote fund of funds to help diversify risk and encourage long-term investing. But the biggest takers could be banks.
The mainland securities regulator has given approval for asset managers to manufacture funds of funds, and some firms have been working towards this in recent months.
Gen2 Partners founders Paul Heffner and Barry Lau have rebranded the company as Adamas, putting a greater focus on private equity and seeding hedge fund managers.
Fund-of-funds manager Gen2 Partners is targeting AUM of $275 million and an initial close by the end of this year, pointing to an estimated $500 billion shortfall in SME financing in China.
The NCSSF is tipped to issue RFIs/RFPs for equity-based fund-of-funds mandates before Chinese New Year. It comes after it awarded eight domestic mandates on Christmas Eve.