Amundi preps HK’s first education-themed fund

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The firm plans to bring more thematic products to Hong Kong investors with help from subsidiary CPR Asset Management.

Amundi Asset Management has received approval from the Securities and Futures Commission (SFC) to launch the Amundi HK – Global Education Opportunities Equity Fund, which will be domiciled in Hong Kong.

It will be the first SFC-authorised product that will solely focus on the education theme, SFC records show. In Singapore, there are still no education-focused products available for sale to retail or accredited investors, according to FE data.

An Amundi spokeswoman declined to elaborate on product strategy and expected launch date. She did say that growth of education-related stocks globally is supported by long-term drivers, including population growth and development of the middle class. Additionally, global spending on education is expected to grow to $10trn by 2030 from $6.3trn in 2020, she said.

“The fund invests in a theme with a positive impact on society and contributes to the achievement of UN Sustainable Development Goals, which include quality education, reduced inequality and breaking the cycle of poverty.”

Hong Kong domiciled funds

In total, Amundi manages at least five Hong Kong-domiciled thematic products: the Global Ageing Planet Opportunities, the Disruptive Opportunities Equity, the Green Planet, the New Generation Asia Pacific Equity and the Global Multi-Thematic Equity funds, according to FE data.

The spokeswoman said that Amundi will continue to bring thematic investment products to Hong Kong with the help of its wholly-owned subsidiary, CPR Asset Management. CPR AM focuses on sustainable investments and manages €47.5bn ($53.5bn) in global assets, according to its website.

Two of Amundi’s thematic products – the Global Ageing Planet and Disruptive Opportunities funds – have CPR Asset Management as its “investment adviser”, according to their prospectus. CPR AM advises the fund managers but does not have discretionary investment management powers over the products, the prospectus said.

CPR AM manages its own education equity product, the Invest – Education Fund, which was launched in October last year and is the only education-focused fund in the offshore universe, according to data from FE. The spokeswoman said that Amundi’s education-themed fund will replicate CPR AM’s education strategy.

CPR AM’s Invest Education Fund’s portfolio breakdown and top holdings

Source: CPR Asset Management
Source: CPR Asset Management

 

Thematic push

Fund managers have been promoting their thematic products in Asia. Blackrock, for example, recently received approval from the SFC and the Monetary Authority of Singapore to launch at least three thematic funds. Allianz Global Investors and UOB Asset Management also registered three thematic funds in Singapore in January.

Hong Kong-based Value Partners launched in February the Asian Innovation Opportunities Fund, which is a mixed-asset fund. The firm also intends to launch the Asian Innovation Equity Fund this year.

Natixis Investment Managers earlier this year established a Paris-based affiliate, Thematics Asset Managers, which is made up portfolio managers who previously co-managed Pictet Asset Management’s thematic products. Thematics AM’s products are only available to professional investors in Asia.


The Invest – Education Fund versus its benchmark index and sector since launch

Source: FE Analytics. In US dollars.

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