Product line-up
Principal Financial intends to develop its offerings across different markets.
In China, the CCB Principal plans to further develop its fixed income offerings and move away from money market funds, as regulators are tightening rules for money market funds, according to Cheong.
It also plans to launch equity index products with the aim of providing more options for fund-of-funds (FoFs) and pension offerings long-term, he added. CCB Principal is one of the first firms to get approval to launch an FoF product in the onshore market.
Without giving a timeline, West said the group also hopes to include funds sub-advised by CCB Principal into its offshore platform in Dublin.
“We’ve had very early discussions [with the CSRC], and there’s quite a path you have to go down,” he said.
In Thailand, CIMB-Principal plans to launch a China-focused fund, which will be sub-advised by CCB Principal, according to Win Phromphaet, Bangkok-based chief investment officer in Thailand.
CIMB-Principal is the ninth largest fund management firm in Thailand, with $1.5bn in assets as of the end of May, according to a Cerulli report.
In Malaysia, the joint venture firm has also launched funds, according to Patrick Chang, Kuala Lumpur-based chief investment officer. For example, the firm launched this year the Global Technology Fund, the Millennial Equity Fund and the China Direct Opportunities Fund, which is sub-advised by CCB Principal.
The China fund is Malaysia’s first product that has direct access to onshore China A-shares. Launched in March, the firm saw unexpected demand for the product and had to increase its RQFII quota to RMB 1.6bn ($250m) from RMB 600m as the previous quota was fully utilised by the fund.
In Malaysia, the firm manages RM 55bn ($13.51bn), according to Chang. He added that notable growth is coming from the retail investor segment. The firm manages RM 20bn in retail assets compared to just RM 9bn five years ago, he said.
