RQFII licence enables direct participation in high-growth listed companies in China

KUALA LUMPUR, June 20 (Bernama) -- CIMB-Principal Asset Management Berhad (“CIMB-Principal”), the first asset management company in Malaysia to have received the Renminbi Qualified Foreign Institutional Investor (RQFII) licence in March 2017, was recently awarded an additional quota of RMB1 billion (approximately USD150 million) by the China State Administration of Foreign Exchange.The RQFII licence allows investors to gain direct access to the China A-Shares market, otherwise accessible to only China on-shore investors. 

The initial quota of RMB600 million (approximately USD100 million) was fully utilised just after two months through the CIMB-Principal China Direct Opportunities Fund (“the Fund”) launched in March 2018. The Fund is an equity growth fund that aims to provide capital appreciation over the medium to long-term and will invest a minimum of 70% of its net asset value (NAV) in China A-Shares focusing mainly on small and mid-cap companies with good growth potential, while the remaining 30% of its NAV will be invested in liquid assets. 

Munirah Khairuddin, Chief Executive Officer of CIMB-Principal said, “Achieving our target fund size of USD100 million just after two months speaks volumes of investors’ bullish long-term view of China’s growth story. In response to the overwhelming demand for our maiden China-focused Fund, we are pleased to provide investors with this golden opportunity – through the additional RQFII quota of RMB1 billion – to benefit from the growth prospects of China’s ‘new’ economy and the world’s second largest equity market. The visibility of China A-Shares has also been greatly enhanced following its inclusion in the MSCI global indices on 1 June 2018.”

“The RMB1 billion additional quota awarded to CIMB-Principal provides us with a strong advantage to strengthen our customer value proposition, while cementing our leadership position in the asset management industry, both in Malaysia and regionally”, Munirah added. 

Speaking from CIMB Bank’s viewpoint as the distributor of the Fund, Gary Yong, Regional Head of Wealth Management, CIMB Bank Berhad, said, “We achieved RM200 million (approximately USD50 million) in sales during the IOP of the Fund, our highest sales volume year-to-date. This is a testament of not only CIMB’s strong distribution network of 269 branches nation-wide and capabilities in offering relevant financial solutions that meet the demands of today’s investors, but also the solid growth prospects of the Fund.”

The benchmark for the Fund is Shanghai Shenzhen CSI 500 Index, one of the fastest growing segments in China’s economy. It provides exposure to small and medium companies of the new economy which may have potential to be global players. The Fund is co-managed by CCB Principal Asset Management Co. Ltd. (“CCB Principal”), one of China’s fastest growing asset management companies and backed by China Construction Bank, US-based Principal Financial
Group, and China Huadian Capital Holdings Company Limited. As at March 2018, CCB Principal recorded USD220 billion of assets under management. 

Investors who are keen to know more about CIMB-Principal China Direct Opportunities Fund can visit www.cimb-principal.com.my or the nearest CIMB Bank branch. 

About CIMB-Principal Asset Management Berhad

CIMB-Principal Asset Management Berhad is a premier asset management company with regional investment capabilities. Established in 1995, it is one of the largest asset management companies in Malaysia with regional footprint covering Singapore, Indonesia and Thailand.

CIMB-Principal aspires to be Southeast Asia’s most valued investment management company offering total asset management solutions. It manufactures and distributes a comprehensive range of unit trust funds, and manages customised portfolio mandates for corporations, institutions, as well as government and pension funds. Its regionally integrated team of dedicated investment professionals offers expertise ranging from equity, fixed income, cash management, and Shariah-compliant fund management.

CIMB-Principal is jointly owned by CIMB Group, one of Southeast Asia’s leading universal banking groups; and The Principal Financial Group, U.S.A., a NYSE-listed global financial service company and a leading Fortune 500 company. As at 31 May 2018, CIMB-Principal Group had a total of RM82.8 billion in
assets under management. 

Source : CIMB Group

FOR MORE INFORMATION, PLEASE CONTACT: 
Name : Suria Zainal
Group Corporate Communications 
Group CEO’s Office
CIMB Group Holdings Berhad
Tel : +603 - 2261 0638 
Email : suriawati.zainal@cimb.com 

--BERNAMA