A fund run by Ant Financial Services Group has emerged as the world’s biggest money market fund less than five years after its founding.
Ant Financial’s Yu’e Bao fund saw its assets reach USD$165 billion in the first quarter of the year, beating out JP Morgan Chase & Co’s $150 billion US government money market fund to claim the title of the world’s largest.
The Yu’e Bao fund has managed to amass vast sums of capital since its establishment in 2013 by targeting smaller-scale online investors.
According to figures provided by Ant Financial the vast majority of their investors contribute only modest sums of capital, with over 70% of individual Yu’e Bao accounts holding balances of under 1,000 yuan ($145).
The interest rate of 3.96% that Yu’e Bao currently provides is also highly appealing for investors given China’s ongoing weak yield environment.