E Fund Management, a China-based asset management firm with $40 billion of assets, has teamed up with US-based passive fund house KraneShares to roll out a new fixed income exchange traded fund in the US.
Tseng Ko, Hong-Kong based managing director at E Fund, said the company is also planning to open a new office in US, and is also considering creating joint ventures with US fund managers, reported Financial Times.
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"The US fund market is very big and how much market share we can get is in question, but getting several percentage points should be possible," Ko said.
The publication quoted Ko saying many other fund houses are also seeking expansion opportunities abroad following increasing competition between local groups for domestic assets.
According to Ko, the expansion of China’s RQFII scheme that allows asset managers to invest in mainland securities has resulted in this competitive pressure.
At the same time, E Fund is looking at partnership and distribution agreements in Europe to launch a fixed income fund by the end of 2014.
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By GlobalDataJeffrey Qi, a fund manager at E Fund said that the planned ETF will focus on debt issued by Chinese state-owned enterprises.
