ICBC's Quantitative Investment & Wealth Management Business Grows
OREANDA-NEWS. December 16, 2014. Since the launch of its first quantitative wealth management ("WM") product in 2011, ICBC has built market-leading advantages in terms of quantitative investment technology and system management, and rolled out seven series of quantitative products so far, with around RMB 10 billion assets under management.
Quantitative investment is a new investment method that employs modern measurement approaches for modeling investment philosophies and strategies through designing of specific indicators and parameters, and allows models to track the market in an objective manner. Compared with conventional investment methods, quantitative investment features speed, efficiency, objectivity, rationality, balance between return and risk, and balance between individual stocks and portfolios.
In recent years, the Bank has actively promoted the healthy development of wealth management business, and provided more diversified investment options by innovating wealth management & investment technologies and products. As the first in the domestic banking sector to carry out research on and build a team for quantitative investment, the Bank has established a professional quantitative investment team and research platform, and gained unrivalled advantages in terms of investment research capability, product innovation, and risk control. On product research and development, ICBC has launched seven series of products, including three ? (absolute return) series and four ? (relative return) series.
Of which the series involve private placement, FOF, overseas stocks, commodities, and bond market. For instance, in April 2013, it rolled out "Hengsheng Private Placement", a quantitative product, and posted an annualized return of 30% into this year by applying portfolio investment and hedging strategies, with the product displaying impressive risk-resistant capacity. On investment philosophy and approach, the Bank has set scientific investment strategies, and struck a fair balance between earnings, risks, controls, and steady return, winning the recognition of customers and markets.
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