MMF performance beats expectation
6/1/2004 16:45
Performance of China's first money market fund has far beaten the
fund's manager's expectation, according to today's Beijing Youth
Daily.
Hua'an Fund Management Co Ltd released the first financial report of
the Hua'an Cash Fuli Investment Fund yesterday and said the fund has profited
4.3 yuan (52 US cents) every 100,000 units in the first seven days of operation.
The fund was officially announced to be founded on December 30 last year,
concluding the initial public offering two weeks ahead of schedule.
It sold
4.254 billion units, each priced at 1 yuan (12 US cents).
More than 93
percent of the nearly 120,000 buyers are individual investors.
"Despite a
short operation of a mere seven days, we have achieved a yield rate of 2.244
percent, nearly four times of the after-tax current deposit rate of 0.58
percent," said Han Fanghei, Hua'an's general manager.
"The rate is also
higher than the company's promise of 1.62 percent in the fund prospectus," he
added.
Confident about the fund, he said "we successfully prove a bright
prospect of money market fund with sound data."
The new mutual fund product's
strategy is to invest in the highly liquid and low-risk asset classes of
treasury bills, certificates of deposit and commercial papers.
Hua'an has
become China's pilot MMF operator after it, along with Boshi Fund Management Co
Ltd and China Merchants Fund Management Co Ltd, obtained the approval on
December 10 for its MMF proposal from the securities market watchdog, China
Securities Regulatory Commission (CSRC).
It led the sale by starting from
December 14, while China Merchants followed the sale from December 15 and Boshi
from 16. Sale of the three funds was scheduled to end on January
12.
Jane Chen/ Shanghai Daily news
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