Taikang Asset Management (Taikang AM) has become the first fund management subsidiary of a mainland Chinese insurance firm to expand into the mutual fund space.
Taikang AM is the asset management arm of Beijing-based Taikang Life Insurance, which was established in 1996. According to the insurer’s website, Taikang has gained a licence from the regulator for the operation of a mutual fund business.
The asset manager is one of the largest institutional investors in the Mainland, with AUM of over 700 billion RMB (US$113 billion). Prior to the licence issuance, Taikang AM focussed on raising capital from institutional clients, such as insurance companies.
Taikang AM’s investment capabilities cover fixed income, equities, real estate, infrastructure and private equity. The firm also plays an active role in pension asset management.
It is among the top three investment managers for the Mainland’s voluntary enterprise annuity (EA) programme, the second pillar of country’s pension system in which enterprises and their employees make contributions in preparation for the latter’s retirement needs. It manages over 80 billion RMB in assets for the EA programme.