US$14bn in net flows, down US$11bn - Asia FlowWatch - April 2016

In April 2016, long-term funds in Asia (excluding existing funds in China, which report data on a quarterly basis) garnered US$14 billion in net flows, US$11 billion less than the amount collected in the previous month. Bond funds led with US$12 billion, followed by guaranteed programs (US$6 billion), mixed products (US$3 billion), and real estate vehicles (US$2 billion). On the other hand, equity funds saw net redemptions of US$8.7 billion for the month.

Asia Pacific and Guaranteed/Protected (mainly new funds in China) were the top selling categories, raising US$12 billion and US$6 billion, respectively. In contrast, Equity Asia Pacific experienced close to US$7.8 billion in net outflows.

At the product level, China’s guaranteed products Lion HeXin Guaranteed Mixed Fund and Penghua JinDing Guaranteed Mixed Fund took the lead this month, each collecting roughly US$750 million in net new money. Both funds adopt a three-layer model and a CPPI strategy to pursue stable returns for investors.