During 4Q’17, US$79.2 billion was deposited into newly launched long-term funds across Asia, Europe and cross-border markets. Despite fewer new products than during the previous quarter, Asia still led in terms of net new flows with US$39.6 billion. Meanwhile, net subscriptions into new local Europe funds fell to US$19.6 billion, whereas net deposits into cross-border funds rose to US$20 billion.
In Asia, the 757 newly launched long-term funds gathered nearly US$40 billion during 4Q’17. With 273 new funds attracting US$3.1 billion in net flows, Korea led in terms of product development. The highest cash flows were however observed in China, where 117 new funds collected US$23.3 billion in net deposits.
Long-term funds launched in Japan during 4Q’17 garnered US$4.9 billion in net sales, over a quarter of which can be attributed to Asset Management One’s new global equity fund. Accordingly, equity funds reached US$3.9 billion in net new flows, while their bond counterparties collected US$724 million.
Within local Asia ex-Japan and China, the highest cash flow fund of the quarter was launched in November by the Indian government as a tool to reach their divestment target. The Bharat 22 ETF is used by the government as a vehicle to sell its shares in 19 state-owned and 3 private sector companies to investors.
Net deposits into new long-term cross-border funds reached US$20 billion in 4Q’17, a 74% increase from the previous quarter’s result that benefited all major asset classes. This marked the first quarter last year during which cross-border funds outsold their local Europe counterparts.
Net sales recorded by newly launched local European funds amounted to US$19.6 billion, a 23% drop compared to the 3Q’17 figure. The region mainly suffered from a loss of investors’ appetite for bond funds, which attracted US$4.4 billion, compared to US$9.1 billion in 3Q’17