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Ant Financial’s Yu’e Bao fund removed personal investment restrictions


The world’s biggest money market mutual fund, overseen by the Chinese billionaire Jack Ma’s Ant Financial Group, has relaxed some restrictions on individual investments to stanch a rise in redemptions.

Tianhong Yu’e Bao removed personal investment quota requirements and a daily subscription cap effective April 10 in a move to “better meet investors’ wealth management demand”, said Tianhong Asset Management Co, the fund’s manager, in a statement.

Under the previous rule, individuals were allowed to invest up to a maximum account value of 100,000 yuan ($14,892.25) and daily investments were capped at 20,000 yuan.

The removal of quota requirements and daily caps mark the first relaxation of rules for individual investors following a slew of tightening moves over the past two years.

Faced with rising regulatory pressure to shrink its size amid worries over potential systemic risks, Tianhong started to take measures to control the pace of growth of its money market fund in 2017.

Analysts said risk appetite has greatly improved since the start of this year with investors preferring stocks and bonds to money market funds, while expectations of looser monetary policy have pushed yields on money market products lower, leading to rising redemptions and shrinking size of money market mutual funds.

Launched in 2013, the Tianhong-managed Yu’e Bao fund is the world’s largest money market fund. It held 1.13 trillion yuan in net assets at the end of 2018, according to its annual report, down from 1.58 trillion yuan a year earlier.