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AIA-JF Green Fund--Differentiation in Funds Market
The Mandatory Provident Fund ("MPF") was established in December 2000 in Hong Kong to provide a formal, government-supervised retirement protection vehicle for the local population. As a major MPF service provider, AIA-JF made a revolutionary move in launching the first socially responsible investment ("SRI") fund, the Green Fund, in the MPF market. SRI was a relatively new concept in Hong Kong, though it had been growing rapidly in the U.S. and Europe since the mid-1980s. In the first year of its launch, the Green Fund attracted US$5 million, as targeted. However, the company had to quadruple the fund size to US$20 million in three years' time with economically viable marketing approaches. Illustrates the special characteristics of marketing investment products, particularly in target market selection, and allows students the opportunity to recommend marketing strategies targeted at corporate and individual consumers.