Posted inFund Flows

Equity funds continue to steer Taiwanese fund inflow

The inflow to Taiwan domiciled funds in quarter four of 2022 is almost five times more than that in quarter three.
Spring concept- beautiful cherry blossom with taipei city view

Funds domiciled in Taiwan posted inflows of TWD236.6bn ($7.97bn) during the last three months of 2022, according to Morningstar Direct data.

This is almost five times the inflows recorded during the third quarter, which amounted to TWD48.7bn.

The strong inflows were led by equity funds, which raked in TWD118.8bn in net inflows for the quarter, slightly dropping from TWD125.9bn in the third quarter.

At the Morningstar category level, 34 out of 50 equity sub-sectors recorded positive inflows during the period, with local stocks remaining local investors’ favourite.

In the last quarter of the year, Taiwan large-cap equity and small/mid-cap equity attracted new assets of TWD79.2bn and TWD9.4bn respectively and were ranked as the first and third most popular equity categories.

Vietnam equity funds were second with TWD11.2bn of net inflows.

Allocation funds continued to bleed for the third quarter consecutively, with investors redeeming a net TWD8.7bn from TWD aggressive allocation funds.

Fixed income funds reversed the TWD19.8bn net outflows in the previous quarter and attracted TWD82.6bn in net inflows this quarter.

Investors continued to favour US dollar government bonds and recorded TWD64.5bn in net inflows, while fixed term and onshore renminbi bond funds continued to bleed, with net outflows of TWD4.9bn and TWD2.4bn, respectively.

Total net assets reached TWD4.88trn by the end of the year, shooting up from TWD459trn at the end of September.

When looking at individual funds, the Allianz Global Investors Income and Growth Fund remained the most popular fund for the second consecutive quarter, with net inflows of TWD4.64bn.

The fund recorded TWD21.7bn in net assets for the year 2022.

In contrast, the Cathay Global Multiple Income Balanced Fund, managed by local fund house Cathay Securities Investment Trust, shed TWD7.7bn for the quarter.

Looking at sustainable funds, Taiwanese investors added a total of TWD28.5bn into funds that consider sustainability issues during the last three months of 2022.

This represents an organic growth of 11.8% compared with the total net assets at the beginning of the period.

As of the end of December, assets in ESG funds totalled TWD273.2bn, up from TWD239.6bn at the end of September.

Part of the Mark Allen Group.