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Broadridge reveals top selling products in HK, Singapore

APAC-domiciled passive fund sales outpaced actively-managed products during the second quarter, according to a report by Broadridge Financial.

During Q2, APAC-domiciled active funds had net outflows of $11.4bn while passive funds, which include index tracking mutual funds and ETFs, had net sales of $19.9bn.

During the quarter, only 37% of all onshore passive and active funds in the region, including Japan and Australia, recorded net inflows, according to the report.

Within actively-managed funds, guaranteed funds had the largest outflows ($4.8bn), according to the report.

Barbara Ferraresi, Broadridge’s director of global distribution solutions, told FSA in an e-mail reply that guaranteed funds began to have outflows in early 2017. “This category has been suffering outflows for some time.”

The majority of the outflows in guaranteed funds come from China, Ferraresi said, adding that onshore Chinese bonds also saw outflows of $2.5bn during the second quarter.

HK and SG top 10

Turning to passive products, Ferraresi said that most of the gains came from Japan-focused ETFs, driven by ETF purchases by Bank of Japan.

“China equity ETFs also are gaining traction, and the story is slightly different as not all successful funds are domiciled in China,” she said. Although China-domiciled ETFs saw net inflows of $3bn during the second quarter, China-focused ETFs in Hong Kong had net inflows of $870m and those in Taiwan had $340m.

In Hong Kong, four of the top 10 funds in terms of net sales during the second quarter are China-focused ETFs, according to data provided to FSA by Broadridge.

Top 10 products in Hong Kong (US$m)

Fund Name

ETF

Fund Sector Estimated net sales (2Q 2018)
ChinaAMC CSI 300 Index ETF

Yes

Equities China

279.9

Hang Seng H-Share Index ETF

Yes

Equities China

274.5

JPMorgan China Income

No

Mixed Assets Income

269.7

Principal LSF-Hong Kong Equity Fund

No

Equities Hong Kong

255.5

JPMorgan China Pioneer A-Share

No

Equities China

149.1

Fidelity Global Invt-Mkt Invt-Global Bond Fund

No

Bonds Global Currencies

136.7

HSBC China Multi-Asset Income AM

No

Mixed Assets Income

136.4

iShares Core MSCI Taiwan Index ETF

Yes

Equities Taiwan

123.0

Pictet Strategic Income

No

Mixed Assets Income

118.9

iShares FTSE A50 China Index ETF

Yes

Equities China

108.0

 Source: Broadridge Financial, Data excludes money market and fund of funds

 

The picture is different in Singapore, where the top 10 selling products are all actively-managed funds.

 

Top 10 products in Singapore (US $m)

Fund Name

ETF

Fund Sector

Estimated net sales (2Q 2018)

United Income Focus Trust

No

Mixed Assets Income

161.1

First State Dividend Advantage

No

Equities Pacific Income

83.8

Schroder Asian Growth

No

Equities Pacific ex Japan

70.2

Lion Capitals II – Lion Bank of Singapore Asian Income Fund

No

Asset Allocation

54.8

Schroder Asian Income Fund

No

Mixed Assets Income

46.6

Eastspring IUT-Singapore Select Bond

No

Bonds SGD

38.6

United Global Quality Growth

No

Equities Global

31.0

Nikko AM Shenton Horizon Singapore Equity

No

Equities Singapore

14.0

PineBridge Intl Funds – Singapore Bond

No

Bonds SGD

13.1

Schroder Global Quality Bond

No

Bonds Global Currencies

12.9

Source: Broadridge Financial, Data excludes money market and fund of funds

Overall in Asia-Pacific (incl Australia and Japan), the top selling sectors during the second quarter were dominated by equity funds, while the bottom-selling sectors were dominated by bond funds, according to the report.

With the exception of Chinese equities, the report noted that net inflows to country-specific funds tended to come from within the country itself. For example, purchases for Korean won bond funds came from Korea, while Japanese equity funds saw net inflows from Japan.

Source: Broadridge Financial

Part of the Bonhill Group.