Long-term funds in Asia garnered US$60 billion in net flows during September, the highest of any month so far this year. All major asset classes collected net inflows, with bond funds leading the contributions at roughly US$25 billion, followed by mixed products collecting US$21 billion. Both bond and mixed fund flows were mainly contributed by China this month. Equity funds took in US$9.6 billion in net new money, while real estate, guaranteed and “other” programs added US$2.8 billion, US$1.2 billion and US$0.6 billion, respectively. Overall long-term fund net flows in the region reached US$188 billion year-to-date through September, 52% of which went to China.
Bond Asia Pacific was the top selling investment strategy in September, raising US$23.7 billion across all Asian markets. Mixed Flexible funds also attracted US$16.7 billion in net new money. By comparison, Equity Europe products suffered slight net outflows of about US$0.3 billion during the month.
At the product level, China’s BOC Yue Xiang Interval Bond Fund topped the best-selling fund list in September, accumulating US$4.2 billion in net flows. The newly launched bond fund has benefited from the growing investors’ demand on fixed income products amid stock market volatility. In Japan, Nomura Topix Exchange Traded Fund, the second best-selling fund and largest ETF in Asia, gathered US$2.4 billion in net new money.