(Yicai Global) Jan. 22 -- China's first manager to take advantage of reforms in the country's private pension market has published its first quarterly financial report.
China Asset Management's CAM Pension Hybrid FOF, a fund of funds with a target date of 2040, had a yield of 0.99 percent as of Jan. 16, the Beijing-based firm said in the report. The yield was 0.38 percent at the end of last year. The fund was set up four months ago.
China has stepped up reform efforts in the country's voluntary private pension product market with the approval of FOFs in 2016. The government gave the green light to the first 14 target-date and target-risk retirement funds last August.
The CAM's investment strategy prioritized safety in fixed income products while considering uncertainties at home and abroad, the firm said. By the end of last year, the CAM Pension Hybrid FOF had over 50 percent of its assets in ordinary public fund products, over 37 percent in reverse repurchase agreements, almost 12 percent in bank deposits and less than 1 percent in other types of financial assets.
Seven of the CAM Pension Hybrid FOF's eight funds are fixed income products and the last one is an equity fund for those investors with a greater risk tolerance. The one equity fund is called SSE 50 ETF, to which the CAM has so far contributed CNY1,288,000 (USD189,452), or about 0.5 percent of the equity manager's proceeds. Six of the seven fixed income investment vehicles are bond funds and the seventh is a money market fund.
Editor: Emmi Laine