Investors in Taiwan poured NT$342bn ($11.11bn) into Taiwan-domiciled fixed income funds last year ending November. In total, funds in Taiwan had net inflows of NT$ 414.8bn.
Fixed income fund assets now account for 28% of Taiwan’s onshore fund industry, compared to just 17% the previous year.
Fixed income has now surpassed the marketshare of equity fund assets, which previously had the highest share in the onshore industry, excluding money market funds.
Top asset classes 2018
| Broad asset class | YTD inflows / (outflows) (NT$m) | Total assets (Nov 2018, NT$bn) | Market share (Nov 2018) | Total assets (Nov 2017, NT$bn) | Market share (Nov 2017 |
| Allocation / mixed asset |
49,149 |
221 | 8.55% | 186 |
7.93% |
| Alternative |
37,293 |
179 | 6.92% | 166 |
7.08% |
| Commodities |
(704) |
4 | 0.15% | 5 |
0.21% |
| Equity |
50,778 |
672 | 25.99% | 708 |
30.18% |
| Fixed income |
342,003 |
724 | 28.00% | 401 |
17.09% |
| Miscellaneous |
(6,492) |
44 | 1.70% | 50 |
2.13% |
| Money market |
(57,193) |
742 | 28.69% | 830 |
35.38% |
| TOTAL |
414,834 |
2,586 | 100.00% | 2,346 |
100.00% |
Source: Morningstar Direct
All broad fund categories saw net inflows during the period, with the exception of commodities and money market funds, the data shows.
Sub-asset classes
Within the sub-asset classes, fixed term funds had the highest net inflows during the year. Onshore renminbi bond funds and US dollar government bond funds were also among the most popular sub-asset classes among Taiwan investors.
The inflows into onshore renminbi bond funds were staggering: Total assets increased to NT$68bn last year from just NT$1bn the previous year.
Top 10 net inflows by sub-asset class in 2018*
| Name |
YTD inflows (NT$m) |
Total assets (Nov 2018, NT$bn) | Market share (Nov 2018) | Total assets (Nov 2017 NT$bn) |
Market share (Nov 2017 |
| Fixed Term Bond |
98,622 |
125 | 4.82% | 27 |
1.16% |
| Other Bond |
86,006 |
212 | 8.20% | 135 |
5.75% |
| RMB Bond – Onshore |
67,030 |
68 | 2.65% | 1 |
0.05% |
| USD Government Bond |
47,575 |
81 | 3.13% | 34 |
1.46% |
| TWD Moderate Allocation |
39,689 |
135 | 5.24% | 103 |
4.37% |
| Trading – Leveraged/Inverse Equity |
36,934 |
166 | 6.40% | 152 |
6.49% |
| USD Corporate Bond |
32,878 |
32 | 1.25% |
– |
|
| Taiwan Large-Cap Equity |
32,323 |
119 | 4.59% | 87 |
3.70% |
| China Equity – A Shares |
30,088 |
118 | 4.56% | 127 |
5.39% |
| Global Emerging Markets Bond |
21,028 |
51 | 1.98% | 33 |
1.40% |
Source: Morningstar Direct. *to November 30, 2018.
Within equities, leveraged and inverse (L&I) products, Taiwan large cap and China A-shares were among the most popular categories last year.
Calendar year outflows
On the flipside, Taiwan dollar-denominated money market funds saw the highest net outflows last year. Regional bond and equity funds also saw net outflows, including Asia bond, Asia-Pacific equity, Greater China equity and global bond funds.
Top 10 net outflows by sub-asset class in 2018*
| Name |
YTD outflows (NT$m) |
Total assets (Nov 2018, NT$bn) | Market share (Nov 2018) | Total assets (Nov 2017 NT$bn) |
Market share (Nov 2017) |
| TWD Money Market |
(55,354) |
731 | 28.25% | 817 |
34.82% |
| Asia High Yield Bond |
(9,472) |
30 | 1.16% | 44 |
1.87% |
| Asia Bond |
(6,142) |
15 | 0.60% | 22 |
0.95% |
| Other |
(5,804) |
30 | 1.16% | 36 |
1.54% |
| Asia-Pacific incl Japan Equity |
(4,028) |
8 | 0.31% | 13 |
0.55% |
| Greater China Equity |
(3,688) |
39 | 1.52% | 55 |
2.35% |
| Global Bond |
(3,360) |
10 | 0.39% | 14 |
0.59% |
| Other Equity |
(3,333) |
4 | 0.16% | 5 |
0.20% |
| Europe Large-Cap Blend Equity |
(3,242) |
6 | 0.25% | 11 |
0.47% |
| Sector Equity Biotechnology |
(3,203) |
8 | 0.32% | 11 |
0.46% |
