Lord Abbett’s joint venture in China, Lord Abbett China Asset Management, is planning to offer its second mutual fund, a balanced fund that will invest in domestic stocks and bonds, Reuters reports.
The company is working with its custodial bank, China Construction Bank, to prepare for the application, said Yang Yifeng, head of Lord Abbett China Asset Management. The fund will have wide latitude on how much of its assets will be in stocks, anywhere between 30% and 95%.
Rather than looking to expand assets, the company is hoping to improve the performance of its first offering, a stock fund launched in June 2006, to lock in long-term investors, Yang said. Pan Fuxiang, an executive with the firm, said it is working on developing a campaign along with its custodian to encourage investors to set up monthly contributions to the fund.