New Funds in Global Markets - Q4 2015 - Asia, Local Europe, and Cross-Border
Long-term new funds in Asia, Europe, and Cross-Border markets gathered US$65 billion in net flows during Q4’15. Asia continued to dominate new product development with 736 launches accounting for nearly 70% of the total new fund flows for the quarter.
New long-term product sales in Asia totalled US$43 billion in Q4; US$31 billion of which came from China, followed by Japan with US$7 billion.
New guaranteed products in China garnered US$9.6 billion in net new money, almost five times as much as last quarter. This could be attributed in part to investors’ risk-off sentiment amid stock market volatility in China.
Amundi Japan Policy Related Equity Fund was the top selling new fund in Asia, collecting over US$0.8 billion in Q4. The fund first selects investment themes that will benefit from government policies, then chooses stocks utilizing a bottom-up approach.
Roughly 300 new long-term funds launched in the Cross-border space, gathering US$10.5 billion in assets during Q4. Mixed asset funds garnered US$3.5 billion followed by equity funds which attracted US$2.5 billion. Interestingly, alternative funds continue to gain market share with consistent investor demand. New alternative fund launches in Q4 gathered US$2.4 billion in net new assets.
New local funds in European markets gathered over US$11.5 billion throughout Q4’2015. Spain attracted the most assets during this period with continued demand for target maturity and mixed-asset funds. Passive products gathered nearly US$1.5 billion with new fund offerings in Switzerland and Germany at the helm of investor demand.