Posted inFund Flows

Asia sustainable fund inflows fall

Net inflows into Asia ex-Japan sustainable funds down on the previous quarter, the latest Morningstar data show.
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Net inflows into Asia ex-Japan (AEJ) sustainable funds fell quarter on quarter for the three months to September, according to the latest data from Morningstar.

Excluding China, for which data were not available at the time the report was published, net inflows in Asia ex-Japan stood at $600m during the third quarter compared with $1.3bn during the second quarter.

Sustainable fund flows into Taiwan continued to be the highest in the region, reaching $856m during the third quarter. Meanwhile, Singapore recorded negligible inflows of $0.72m, while inflows into Thailand rose from $0.83m to $5m.

In contrast, India and Hong Kong saw net outflows of $59m and $24m respectively. Korea saw $177m in net outflows, the largest in the region.

Total assets in AEJ were roughly flat at the end of the quarter at $49bn, an increase of just 0.8% quarter on quarter. Outside of China, Taiwan and Korea remained the two largest markets by asset size, accounting for 14.6% and 6.9% of the region’s assets.

Fixed income represented 5.4% of AEJ sustainable fund assets, while equity made up the lion’s share at 60% followed by 34.7% for allocation funds.

Passive funds accounted for 19% of AEJ sustainable fund assets, a slightly decrease from 18.1% in the second quarter.

Meanwhile, Australia and New Zealand recorded net inflows of $445m during the third quarter.

The bulk of flows went into active strategies at 70%, a major reversal of the second quarter, where 85% of flows were into passive strategies.

Assets in Australasian sustainable funds stood at $23.1bn at the end of September compared with $25.3bn at the end of June, due to unfavourable market conditions.

Finally, in Japan, total assets fell 9% to $23bn during the third quarter.

Part of the Mark Allen Group.