J.P. Morgan Asset Management (JPMAM) is considering expanding its MPF product offerings for trustee but is yet to file applications to regulators.
Edwin Chan, head of institutional and pension business, shares his view that the firm is eyeing to develop consider emerging market debt, sector and commodity related MPFs on the back of resilient growth outlook for emerging economies and rising demand for inflation-hedged investment product for retirement.
He said the firm is eager to introduce new products for MPF markets underpinned the recent news from AIA it is to add JPMAM’s Asian Bond Fund to its MPF schemes in September this year.
The asset manager claims it should be the only MPF which fully invest in Asian credit markets.
Chan suggested the MPFA should lose the current restrictions so that MPFs can invest directly in emerging markets as to hedge inflationary pressure in the future.
Wing Sze Yeung, vice president of institutional and pension business, said MPF providers are increasingly using multi-investment managers for their schemes rather than just picking one. Therefore, the firm is looking to expand its partnership via different formats with MPF providers.
The asset manager and AIA formed alliance in 1999 to provide MPF products for members. Currently, the firm also partners with some of the MPF providers as an investment manager for the funds which include BOCI-Prudential Trustee, Bank Consortium Trust (BCT), and Mass Mutual Trustees.