During August 2016, long-term funds in Asia (excluding existing funds in China, which report data on a quarterly basis) garnered US$26 billion in net flows. Bond funds led the contributions with US$12 billion, followed by mixed products (US$8.9 billion), while real estate vehicles, ‘other’ programs and guaranteed products added US$3.3 billion, US$1.7 billion and US$0.7 billion, respectively. Meanwhile, equity funds experienced US$0.1 billion in net redemptions for the month.
Bond Asia Pacific was the top selling investment category in August, raising US$10 billion across Asian markets. Mixed Flexible funds, mostly new launches in China, attracted roughly US$8 billion in net new money. By comparison, Equity North America products suffered net outflows of over US$0.4 billion during the month.
At the product level, Japan’s Fidelity US REIT Fund topped this month’s best-selling fund list, accumulating nearly US$1.1 billion in net flows. Notably, the newly launched Orient Securities RuiHua Shanghai & Hong Kong Mixed Fund reached its fundraising target during the first day of its IPO, collecting almost US$1 billion in China. The fund adopts a bottom-up approach, investing in stocks listed on exchanges in both China and Hong Kong. Moreover, the fund will be closed for subscriptions and redemptions during the first three years, aiming for longer term investment.