China National Pension Onboards 12 Asset Managers

China's National Council for Social Security Fund has approved contracts with 12 global asset managers, including JPMorgan Chase & Co. and Schroders.

(July 23, 2012) — China’s roughly $136 billion national pension fund has selected 12 global asset managers, including JP Morgan Chase & Co and Schroders for its overseas investments.

China’s National Council for Social Security Fund — which said in March that its total investment returns fell 77% last year — is permitted to invest as much as 20% of assets overseas through qualified managers, Bloomberg reported. According to a statement released by the pension fund, Standish Investment Management and Stone Harbor Investment Partners will handle emerging markets and debt products. AGF Management Ltd., Investec Ltd., JP Morgan, and RBC Global Asset Management will handle natural resource stocks. AEW Capital Management LP, AMP Capital and European Investors will handle global real-estate stocks.

The NSSF began investing overseas in 2006 with no more than 20% of its total fund, which covered largely banking deposits, bank bills, bonds, equities and equity funds, as well as other derivative financial instruments, according to the China Daily.

“This is a landmark win for AGF and for our expansive global institutional business,” said Blake C. Goldring, chairman and chief executive officer of AGF Management Limited, in a statement. 

“NCSSF is one of the largest institutional investors in China with almost RMB 1 trillion ($157 billion) in funds under management. This mandate…highlights the growing trend of Chinese offshore investing,” said Anthony Fasso, capital director of international business at AMP Capital, a specialist investment manager with over A$124.9 billion in funds under management.

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