Fast asset gatherers reflect product trends

Asset Class in Focus

Fixed maturity and passive products make up the list of funds that gathered $1bn or more in the past 12 months.

Only four funds with an inception date later than July 29, 2018 and available for sale in Hong Kong and/or Singapore have gathered $1b or more in assets, according to FE data.

As a testimony to the direction of investor sentiment in the past 12 months, a fixed maturity product from Credit Suisse was the biggest collector of capital, attracting $1.8bn in six months. Fixed maturity products have become popular, with several managers including HSBC, and Amundi launching FMPs this year.

Although the Legg Mason fixed maturity product did not collect $1bn or more during the period measured, it is included in the list due to the swiftest rise in AUM. It was incepted on June 27, about one month ago, and has $707m in assets, according to FE data.

All of the funds are available for sale in Singapore.

Some of the products likely had committed investments from institutions before launching, according to Luke Ng, senior VP of research at FE Advisory Asia.

The Credit Suisse equity fund collected $1.46bn in 10 months. However, it is actually an index fund tracking the MSCI EMU Index comprised of large and mid-cap companies in the Eurozone, according to the factsheet: “The investment objective is to replicate the reference index as closely as possible and to minimise performance deviations from the benchmark.”

The fund had $98.5m (€88.6m) in assets in December 2018, according to Ng. That surged 10x to $1.04bn in January 2019. “They may have had a big client come in January or it could be from internal clients,” Ng said.

In either case, a big bet was made on European equities.

Another huge money collector, the UBS money market fund, has a $100m minimum investment requirement, an amount that most institutional investors have the capacity to allocate.

Fastest asset gathering funds over 12 months

ProductInception DateSize

(US$)

OCF (%)Initial Charge (%)Asset Class
CS Investment 3 CS (Lux) Fixed Maturity FR Bond 2023 S-IV B USD in US28/1/2019$1.8bn0.975.00Fixed Interest
UBS (Lux) Bond SICAV 2023 (USD) K-1 Acc in US01/2/2019$1.464bn0.651.50Fixed Interest
CS Equity EMU Blue DB EUR in US14/9/2018$1.462bn0.02 —Equity index tracker
UBS – (Irl) Select Money Market US Treasury*14/11/2018$1.31bn0.14 —Money market
Legg Mason Diversified Global Credit Fixed Maturity Bond 2023 A Acc USD27/06/2019$702.6m0.605.00Fixed interest

 

Source: FE. Data for funds available for sale in Hong Kong and/or Singapore, in US dollars.

Funds that have a date of inception after July 29, 2018 and more than $600m in assets.

*$100m minimum investment

 

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