AMP Capital, China Life joint venture launches a new mutual fund that focusses on short-term RMB investments.

China Life AMP Asset Management, the joint venture between AMP Capital and China Life Asset Management, has launched its inaugural mutual fund that focuses on short-term investments.

The China Life AMP Money Market Fund requires a minimum investment of RMB1,000 ($165) and dabbles in investments such as liquid short-term bonds and cash deposits. The launch follows the success of its initial public offering in China in early January 2014, which generated RMB11.9 billion.

The growth of wealth management in China represents significant opportunities for funds management, said the company in a statement. According to the Asset Management Association of China, in 2013, the local mutual fund industry reached a total A$0.8 trillion ($132 billion) in assets under management and is expected to grow further by 15 per cent per annum to reach A$1.6 trillion in 2017.

AMP Capital holds a 15 per cent interest in the joint venture, while China Life owns the rest. This venture is the latter's first joint venture in Mainland China with a foreign partner in funds management. The two companies entered into this deal in August 2009.