(China Alert) MRF: A Zealous beginning
·Zeal AM launched the first northbound MRF fund in China
·The firm is using an interesting launch strategy via Tianhong
·Generalization from Zeal’s experience may be difficult
Update: A boutique Hong Kong firm, Zeal Asset Management, has become the first to launch an MRF fund in China, entering a big market via a groundbreaking cross-border access program. What is interesting to us is that Zeal’s Voyage China Fund has been launched in partnership with Tianhong, best known for its connection with Alibaba’s mobile payment platform Alipay and for creating the largest mutual fund in China – the RMB621bn Yu E Bao. This launch will be followed by many more, with 14 MRF funds currently lodged for CSRC approval. Z-Ben Advisors believes that, while this fund launch may not be wholly predictive of the success of others in the pipeline, it will provide at least some insight into what is to come. Multiple parties are asking: what does it mean?
From Zeal’s perspective, this is a chance for a boutique manager to make its mark in its huge neighboring market. As the first through the gate, this fund launch is a uniquely……
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