Out of the 19 foreign players that manage Taiwan-domiciled funds (onshore market), nine had net inflows during the first half, according to data from Morningstar Direct.
Leading the inflows is Pinebridge Investments, which attracted NT$33.9bn ($1.5bn) during the period. It is also the second firm having the largest inflows in Taiwan’s overall onshore market, including domestic firms, with Yuanta Securities at the top attracting NT$127bn.
Pinebridge’s inflows were propelled by two products: the Global ESG Quant Bond Fund, which attracted NT$15.3bn, and the Preferred Securities Income Fund, which had net inflows of NT$12.7bn, Morningstar data shows. Both products were also the top two best-selling funds managed by a foreign player during the period, the data shows.
The ESG quant fixed income product was just launched in January, according to the firm’s website. The fund gained popularity as it is the first ESG global bond fund and the first quantitative fixed income product introduced in the market, Emily Chang, vice president and head of marketing at Pinebridge in Taiwan, told FSA previously. The AUM of the fund stood at NT$16.1bn as of the end of June.
Meanwhile, the Preferred Securities Income Fund provides a monthly dividend payout ratio of 6-7% per annum, Chang said. The fund is also Pinebridge’s largest onshore product, with NT$48bn in assets, Morningstar data shows.
Following Pinebridge is Allianz Global Investors, which attracted NT$14.8bn during the first half, according to Morningstar. The inflows were across different funds, with five of the firm’s products having at least net inflows of NT$2bn.
AGI funds that had net inflows of at least NT$2bn during the first half
| Fund | 1H 2020 fund flows NT$m |
| AGI Taiwan Intelligence Trend | 3,104 |
| AGI Taiwan Money Mkt | 3,465 |
| AGI Inc and Gr Fd | 6,515 |
| AGI Taiwan Fund | 2,591 |
| AGI Taiwan Tech | 2,010 |
Source: Morningstar Direct. Data only includes Taiwan-domiciled funds.
Other firms that had sizable inflows during the period include Neuberger Berman, UBS Asset Management and Invesco. Neuberger Berman’s best-selling fund was the High Quality Corporate Bond Fund (NT$5.3bn in net inflows), while UBS AM’s most popular product was the Emerging Market Bond (NT$4.3bn in net inflows). Invesco’s Fixed Maturity Global Emerging Bond Fund was the firm’s top product, attracting NT$5.8bn.
Foreign firms that had net inflows in Taiwan’s onshore market in 1H 2020
| Name | fund flows NT$m | AUM NT$bn (June 2020) | AUM NT$bn (June 2019) | AUM Change % |
| PineBridge Investments Mgmt | 33,932 | 150 | 108 | 39% |
| Allianz Global Investors | 14,796 | 129 | 105 | 23% |
| Neuberger Berman | 10,542 | 18 | 6 | 211% |
| UBS Securities Invmt Advisory | 6,533 | 10 | 4 | 135% |
| Invesco | 6,426 | 96 | 85 | 13% |
| AllianceBernstein Investments | 1,736 | 63 | 64 | 0% |
| Eastspring Securities Investment | 1,565 | 94 | 85 | 10% |
| UOB Asset Management | 860 | 11 | 7 | 63% |
| Amundi Asset Management | 248 | 13 | 4 | 204% |
Source: Morningstar Direct. Data only includes Taiwan-domiciled funds.
Struggling firms
On the flipside, 10 foreign players had net outflows in Taiwan’s onshore market.
JP Morgan Asset Management had the highest outflows during the first half, mainly driven by its China-focused equity strategies – a category that Taiwan investors have avoided since last year.
Foreign firms that had net outflows in Taiwan’s onshore market in 1H 2020
| Name | 1H fund flows NT$m | AUM NT$bn (June 2020) | AUM NT$bn (June 2019) | AUM Change % |
| JPMorgan Asset Management | (16,643) | 84 | 106 | -21% |
| Nomura Asset Management | (6,991) | 86 | 86 | 0% |
| Franklin Templeton Sinoam Sec Inv Mgmt | (3,619) | 81 | 82 | -1% |
| FIL Securities Invmt Trust | (2,954) | 8 | 13 | -40% |
| Aberdeen Standard Investments | (1,434) | 9 | 7 | 22% |
| Schroder Investment Mgmt | (1,345) | 58 | 51 | 13% |
| Manulife Asset Management | (1,229) | 27 | 30 | -11% |
| HSBC Global Asset Management | (721) | 20 | 23 | -13% |
| DWS Far Eastern Investments | (645) | 9 | 10 | -11% |
| BlackRock Investment Mngt | (413) | 2 | 4 | -32% |
Source: Morningstar Direct. Data only includes Taiwan-domiciled funds.
At least five of JP Morgan AM’s China-related equity products collectively had net outflows of NT$9.8bn during the first half, with the JPMorgan China A Fund having the largest outflows of NT$6.1bn, followed by the JPM China Income Fund (-NT$2.4bn), Morningstar data shows.
The case was similar for Franklin Templeton, which saw three of its China equity funds collectively having NT$4bn in net outflows.
China A-share funds offered in Taiwan’s onshore market continue to bleed this year and has become the second fund category having the largest net outflows during the period (see below).
Following JP Morgan AM is Nomura AM, which had net outflows across its Taiwan-domiciled products. Out of the firm’s 52 onshore funds, 42 had net outflows, with the Nomura Asia Pacific High Yield Bond Fund having the highest outflows of NT$3.2bn, Morningstar data shows.
| Top 10 fund categories with net inflows | Bottom 10 fund categories with largest net outflows | ||
| Fund category | 1H 2020 NT$m | Fund category | 1H 2020 NT$m |
| Taiwan Large-Cap Equity | 134,873 | USD Government Bond | (146,542) |
| TWD Money Market | 91,965 | China Equity – A Shares | (29,943) |
| Global Emerging Markets Bond | 81,190 | RMB Bond – Onshore | (27,299) |
| Fixed Term Bond | 33,870 | USD Corporate Bond | (27,087) |
| Trading – Leveraged/Inverse Equity | 27,095 | Other Bond | (26,780) |
| Trading – Leveraged/Inverse Commodities | 20,113 | China Equity | (14,769) |
| Global Bond | 18,861 | Alt – Volatility | (14,243) |
| US Large-Cap Blend Equity | 16,621 | Asia High Yield Bond | (5,389) |
| Commodities – Energy | 15,993 | Sector Equity Communications | (5,157) |
| Sector Equity Technology | 10,299 | Greater China Allocation | (4,402) |
