JPMorgan Asset Management’s China retail asset management subsidiary will go head-to-head with about half a dozen top local fund houses after the Lunar New Year holiday to raise money for exchange traded funds that track a newly established index, reports the Financial Times. The move marks the first time a wholly foreign-owned enterprise will compete directly with domestic fund giants in a co-ordinated fund launch for identical products. It also comes amid red-hot investor interest in ETFs and could become a “fundraising war,” one manager suggested.
Six firms will begin first-round funding for their CSI A50 ETFs on February 19, after the Spring Festival in mainland China which falls between February 10 and 17, according to regulatory filings posted on the China Securities Regulatory Commission website. The fundraising efforts are scheduled to wrap up on March 1.
The managers include Fullgoal Fund Management, Yinhua Fund Management, Dacheng Fund Management, Hwabao WP Fund Management, Ping An Fund Management and JPMorgan Asset Management (China).