China approves 14 new pension target funds
China has approved the country’s third group of pension target funds, allowing 14 more such funds to play a bigger role in meeting the retirement planning needs of an aging population.
E-Fund Management, an asset management company based in Guangzhou, obtained approvals for issuing two more such funds while 13 other fund management firms including China Southern Asset Management and China Asset Management were authorized to issue one more each, according to the China Securities Regulatory Commission.
The new round of approval brought the number of authorized pension target funds to 40. Pension target funds are mutual funds that encourage long-term holding by investors, adopt mature asset allocation strategies and control the risk of volatility to seek long-term, stable returns on retirement savings.
Currently, China’s retirement plans mostly rely on state- and corporate-sponsored programs. The country is looking to develop pension target funds, part of individual retirement plans, to complement the system amid pressure from the aging society.
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