Chinese mutual funds remain a hot commodity.
Take for example China Universal Asset Management’s Medical Services Balanced Fund, which raised 26.2 billion ($4.2 billion) in just one day, the second fund to attract a huge amount of investments in a single day, according to Red Pulse.
E Fund’s Silk Road Fund used to hold the biggest single-day fund-raising, receiving 28.7 billion yuan, said the report.
China Universal is the first in the mainland to offer a medical themed fund, perhaps inspired by the spectacular performance of its PE subsidiary that focuses on medicine and health care. The firm’s actively management equity funds had an aveage return of 140.89% so far this year through June 2, the report said.
Red Pulse wrote:
“An aging population and demand for high quality care make health care a promising industry. Demand for investment in medical services has been amplified by growth across the stock markets. By launching this medical service fund at this moment, China Universal wants to lock in market opportunity.”
China Universal manages more than 194.6 billion yuan in assets.
China’s mutual fund industry has been growing dramatically, thanks to yield-hungry investors who want to maximize their returns.
According to Fitch, total amount of mutual funds and mandates — not counting mandates held by their subsidiaries — soared 61% at end-2014 to 6.7 trillion yuan ($1.1 trillion) compared to a year ago. Growth will continue because of the country’s huge savings deposits and the domestic industry’s relatively low penetration level vis-a-vis developed markets.
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