China Fund Licence
Prudential PLC
06 April 2006
Embargo: 07.30 Thursday 6 April 2006
CITIC Prudential Fund Management Company launches first fund in China
Prudential's asset management joint venture with CITIC, CITIC Prudential Fund
Management Company, today announced the launch of its first fund product. The
fund is a balanced fund and is targeted at domestic retail and institutional
investors. The fund is being distributed through the Agricultural Bank of China,
China CITIC Bank and several securities companies.
The fund was developed in response to consumer research conducted by CITIC
Prudential Fund Management Company indicating that many Chinese retail investors
are risk averse and prefer more stable investment funds. The fund aims to
provide regular income and capital growth by investing in equities and bonds.
In addition to the launch of the balanced fund, CITIC Prudential Fund Management
Company signed a memorandum of understanding with the Agricultural Bank of China
providing distribution support for the balanced fund and subsequent fund
products and support for Prudential's Qualified Foreign Institutional Investor
application.
Ajay Srinivasan, Chief Executive, Fund Management, Asia added; 'The launch of
our first fund is an important milestone in our plan to build a quality fund
management business in China. With the strong support of our partner CITIC and
our customer centric approach, I believe we will make a positive contribution to
both the Chinese funds management industry and Chinese investors.'
CITIC Prudential Fund Management Company Chief Executive Officer, CheeSeng Shek
said, 'Partnering with an important bank like China Agricultural Bank is a great
first step for CITIC Prudential Fund Management Company. I am sure the launch of
our first fund will be a strong start to a very long relationship.'
CITIC Prudential Fund Management Company is headquartered in Shanghai and will
offer its new investment products nationwide. This funds management operation is
Prudential's ninth in Asia and adds to its rapidly growing portfolio of funds
businesses.
- ENDS -
Enquiries:
Media Investors
William Baldwin-Charles 020 7548 3719 James Matthews 020 7548 3561
Joanne Doyle 020 7548 3708 Marina Novis 020 7548 3511
About Prudential
Prudential plc is a leading international financial services group, providing
retail financial services and fund management in its chosen markets: the United
Kingdom, the United States, Asia and continental Europe.
Prudential has been writing life insurance in the United Kingdom for over 150
years and has had the largest long-term fund in the United Kingdom for over a
century. Today, Prudential has over 16 million customers worldwide and over £234
billion (as of 31 December 2005) of funds under management.
In the United Kingdom Prudential is a leading life and pensions provider
offering a range of retail financial products. M&G is Prudential's UK & European
Fund Manager, with around £149 billion of funds under management (as of 31
December 05). Jackson National Life, acquired by Prudential in 1986, is a
leading provider of long-term savings and retirement products to retail and
institutional customers throughout the United States. Egg provides banking,
insurance and investment products through its internet site www.egg.com.
Prudential is the leading European-based life insurer in Asia with operations in
12 markets as well as funds management businesses in 9 of those 12 markets.
*Prudential plc, a company incorporated and with its principal place of business
in the United Kingdom, and its affiliated companies constitute one of the
world's leading financial services groups. It provides insurance and financial
services directly and through its subsidiaries and affiliates throughout the
world. It has been in existence for over 150 years and has £234 billion in
assets under management, (as at 31 December 2005). Prudential plc is not
affiliated in any manner with Prudential Financial, Inc, a company whose
principal place of business is in the United States of America.
About CITIC Group (China International Trust and Investment Corporation)
CITIC was established on October 4 1979 by Rong Yiren. The creation of CITIC was
initiated and approved by Deng Xiaoping, chief architect of China's reform.
CITIC is a window on the way China has opened to the outside world. Since its
inception, CITIC has always adhered to the principle of innovation. In line with
government laws, regulations and policies, CITIC has attracted and utilized
foreign capital, introduced advanced technologies, and adopted advanced and
scientific international practices in operations and management. CITIC has
established successful, strong performing businesses in many fields. As a
result, CITIC has made significant contributions to the country's reform and
opening up drive and has improved China's reputation both domestically and
abroad.
CITIC has grown into a large multinational conglomerate. It now owns 44
subsidiaries in countries including Hong Kong, the United States, Canada,
Australia and New Zealand. The company has also set up representative offices in
Tokyo, New York and Frankfurt. CITIC's core business ranges from financial
services to service industries. By the end of 2004, CITIC had total assets of
over RMB 701.6 billion (US$84 billion).
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