China NSSF Hires Fund Managers To Invest Abroad

SHANGHAI/HONG KONG (Reuters) – China’s National Social Security Fund (NSSF) is ready for a new round of investment in global capital markets as it has appointed a new set of foreign asset managers, including BNY Mellon Asset Management and Schroders (SDR.L), sources said on Tuesday.

The $80 billion NSSF awarded mandates to a group of international fund managers, which also include Martin Currie and Fidelity Investments, and started doling out money in April, said the sources with direct knowledge of the matter.

It was not clear how many fund managers in total were picked and the sources declined to say how much money in total was being authorised by the NSSF for investment in global markets.

The new mandates, which followed a beauty parade launched last May, represent the NSSF’s latest effort toward a more diversified global portfolio.

In late 2006, the Chinese national pension fund selected 10 foreign fund houses to help invest $1 billion in global capital markets, mainly stocks and bonds.

Representatives for BNY Mellon Asset Management, a unit of Bank of New York Mellon Corp (BK.N), Schroders, Martin Currie and Fidelity, all declined to comment, as did an NSSF spokeswoman.