Opening up early access to super for housing would have a negative effect on the balances of even those members that don’t dig into their savings, with funds forced to adopt more conservative investment strategies and hold more liquid assets.
The circa $88 billion industry fund for workers in health and community services reckons that alleviating the affordable housing crisis will boost its other investments by easing the cost of living and inflation.
AMP lurches ahead with China funds JV
After what has appeared to be a long hiatus, AMP is moving ahead with plans to offer asset management services to the Chinese market through its strategic alliance with China Life.
A public disclosure last week for approval of a business name registration for China Life-AMP indicates the two are likely to go ahead with a joint venture funds management company, according to Chinese research firm Z-Ben Advisors.
Z-Ben told clients: “(we) believe that the new firm is a potentially disruptive competitor that may provide an entirely new model for JV fund management company operations in China. The combination of a large, bank-independent distribution base and strong long-term partnership is a powerful one, and comes at a time when distribution bottlenecks and capital starvation have blighted post-2008 JVs’ business plans. Competitors will watch its progress closely.”
Chinese authorities have recently streamlined and sped up the application processes for various financial services licenses. Z-Ben believes it is possible China Life-AMP could be fully operational by the end of the year.
The big five Chinese banks control most of the distribution of managed funds in China, but the less-powerful life offices offer a potential alternative channel.
Other Chinese life offices to so far formulate relationships with other asset managers are: PICC, Ping ‘An, Taikang and Huatai. Z-Ben says the prospective partnership pool also includes: China Pacific, Taiping, China Re, New China, Minsheng, Anbang, Sino-Life, Union Life and Sunshine.
AMP set up an office in Beijing in 1997 and announced a strategic alliance with China Life in 2009 for asset management and pensions but progressing a range of funds to the market has, until now, been very slow.
