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Amundi to sell global equity fund in China

The cross-border Mutual Recognition of Funds scheme added a global equity northbound fund managed by Amundi and received two more applications from Haitong International Asset Management.
Amundi to sell global equity fund in China

The latest approval was given to Amundi’s Growth Fund on 17 May, according to the China Securities Regulatory Commission (CSRC).

The Hong Kong-domiciled fund, launched in June 2011, had AUM of $52.4m at the end of April, according to FE.

Although it is a global allocation fund, companies listed in Asia take up the majority of assets in the portfolio. Eight out of the largest ten holdings are Hong Kong or China-listed large-cap companies, including Tencent, HSBC and Alibaba.

The Amundi Growth Fund’s top five geographical holdings





Hong Kong




Source: FE

The fund is the firm’s second northbound product. The first fund, the New Generation Asia Pacific Equity Dividend Fund, was approved for MRF distribution in June 2017.

The firm said it has plans to expand its fund range under the northbound MRF scheme with products that are offered in overseas markets, according to Amundi’s Hong Kong-based spokeswoman.

Following the approval of Amundi’s fund, the regulator has completed processing all applications filed in 2015.

New applications

More asset managers have applied to China’s regulator to obtain approval to sell Hong Kong-domiciled funds to mainland investors.

As of 18 May, there are eight pending MRF applications, half of which were filed by Haitong International Asset Management, the subsidiary of the Hong-Kong listed Haitong International Securities.

The firm is still waiting for CSRC approval of its first MRF application filed in to March 2016 to distribute the Global RMB Fixed Income Fund.

In March 2018, Haitong filed three additional applications for its Korea Equity Investment Fund, Asian High Yield Bond Fund and Hong Kong Equity Investment Fund.

Other asset managers that are waiting for CSRC approval include JP Morgan Asset Management, HSBC Global Asset Management and Value Partners.


Amundi Growth Fund versus category average

Source: FE. Fund NAV is converted to US dollars for comparison purposes. The fund does not use a specific index benchmark.

Part of the Mark Allen Group.