Long-term funds in Asia garnered US$13.5 billion in net flows during October (excluding existing funds in China, which report data on a quarterly basis). Bond funds led contributions at roughly US$10 billion, followed by mixed products with US$3 billion. Real estate funds took in US$1.6 billion in net new money, while “other” programs and guaranteed funds added US$0.7 billion and US$0.04 billion, respectively. On the other side, Equity products experienced US$2 billion in net redemptions for the month.
Bond Asia Pacific was the top selling investment strategy in October, raising US$10 billion across all Asian markets. Mixed Flexible funds also attracted US$2 billion in net new money. By comparison, Equity Asia Pacific products suffered net outflows of about US$1.8 billion during the month.
At the product level, Japan’s Nomura Nikkei 225 Exchange Traded Fund topped the best-selling fund list this month, accumulating US$0.8 billion in net flows. The fund holds a portfolio representing all stocks in the Nikkei 225 Stock Average. In China, the newly launched fixed income product CIB QiYuan 1 Year Regular Open Bond Fund attracted US$0.5 billion of new money. The fund invests at least 80% of its assets in Chinese domestic bonds.