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Best-selling Hong Kong-domiciled funds in Q3

JP Morgan's Hong Kong-domiciled mutual funds attracted the most net new assets in the third quarter of 2017, Morningstar fund flow data shows.
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The firm has four products among the top ten mutual funds ranked by estimated net flows in the third quarter. The firm has gathered $668m of net new assets across all its funds domiciled in Hong Kong.

Hong Kong-domiciled funds

Fund Net Flows
JP Morgan Asian Total Return Bond Fund $438.6m
Principal LSF Hong Kong Equity Fund $183.7m
JP Morgan China Income Fund $159.9m
HSBC China Multi-Asset Income Fund $120.3m
BOCHK Hong Kong Dollar Income Fund $115.8m
Schroder China Asset Income Fund $99.0m
CSOP FTSE China A50 ETF $98.5m
JP Morgan Chia Pioneer A-Share Fund $92.7m
BEA Union Investment Asian Bond and Currency Fund $73.5m
JP Morgan Multi Income Fund $65.1m
Data: Morningstar, in US dollars

Five of the top ten funds are mixed-asset products, three are fixed-income and two invest in Greater China equity.

The top asset gatherer in the third quarter, the JP Morgan Asian Total Return Bond Fund, saw consistent solid inflows beginning in May 2017, adding an estimated $688.9m after outflows of $811m between October 2016 and April 2017.

The fund, managed by Stephen Chang, held $3.8bn in assets at the end of September 2017, according to its fact sheet. It has delivered a 4.55% return so far in 2017, underperforming the category average among Hong Kong-domiciled funds by 1.44%, according to data from FE.

Turning to equity funds, the bestselling product in the third quarter, the Principal Hong Kong Equity Fund, has HK$8.73bn ($1.12bn) of AUM and is managed by Mihail Dobrinov and Alan Xi Wang. It saw mostly inflows in the past 12 months, netting an estimated $335.8m. It outperformed its category average but underperformed its benchmark, the Hang Seng Index on a one-, three- and five-year basis.

Among multi-asset funds, the best-seller was the JP Morgan China Income Fund, which netted $159.9m of new assets in the third quarter. It is co-managed by Stephen Chang, Lilian Leung and Emerson Yip. The fund, which holds $289m in assets, solidly outperformed its category on a year-to-date basis, while also staying ahead of its customised benchmark.

Third quarter fund flow data is available for 318 funds domiciled in Hong Kong, with total AUM of $ The Hong Kong-domiciled funds are within the broader universe of around 1,750 funds  authorised by the Securities and Futures Commission for sale in the territory, according to FE.

Funds are often Hong Kong-domiciled because eventually they are intended for sale through the Mutual Recognition of Funds initiative.

The September fund flow data for Hang Seng funds, which constitute around 13% of the AUM in Hong Kong-domiciled funds, was not available at the time of writing.

Part of the Mark Allen Group.