China Universal Asset Management (China Universal) is planning to liquidate its wealth management fund on 16 September 2014.
The firm has decided to close the 28-day wealth management product as it was similar to another 30-day fund, whose subscription and redemption cycle was better suited to clients’ investing patterns.
The termination of the short-term mutual fund product will result in undetermined cost savings, according to Asia Asset Management.
China Universal now has six short-term wealth management funds, with redemption periods of seven, 14, 21, 28, 30 and 60 days.
However, the performance of most of the firm’s short-term wealth management products have dogged due to low liquidity and as they can be subscribed to and redeemed on designated days.