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JP Morgan AM applies for MRF distribution

The asset manager and its joint venture partner, China International Fund Management, are seeking regulatory approval to participate in the Mutual Recognition of Funds initiative.

The MRF initiative allows cross-border selling of funds to retail investors in Hong Kong and China and went live on 1 July.

Michael Falcon, head of the Asia-Pacific funds business for JP Morgan, said the MRF serves as an important milestone in the joint development of the Hong Kong and Mainland China fund markets. 

“Our broad range of equity, fixed income and multi-asset Hong Kong unit trusts will provide diversification to client investment portfolios in mainland China,” said Falcon.

JP Morgan will act as China International’s local representative in Hong Kong while China International will perform the same role for JP Morgan in mainland China.

China International Fund Management is a joint venture between JP Morgan AM and Shanghai International Trust.

HSBC  Global Asset Management, Mirae Asset Management and Principal Global Asset Management recently announced their plans to participate in the MRF programme.

Shanghai-based Z-Ben Advisors recently said the MRF offers the best strategic growth opportunity for asset managers over the next ten years and the programme will attract capital inflows of RMB80bn ($12.9bn) by 2016 and RMB1trn ($161bn) by 2020. 

Part of the Mark Allen Group.