Equity funds bled the most at $5.1bn, followed by money-market funds ($4.6bn), according to the data, which includes 686 funds, with 671 of them domiciled in Taiwan.
On the flipside, allocation (those investing in multiple asset classes such as stocks, bonds and cash), fixed income and commodities funds saw net inflows in the same period, the data shows.
Net inflows (outflows) of funds in Taiwan
|
Broad Category |
2014 flow |
2015 flow |
2016 flow |
|
Allocation |
$2.1bn |
$1.4bn |
$488.8m |
|
Fixed Income |
$322.5m |
($1.7bn) |
$291.2m |
|
Miscellaneous |
$165.9m |
$22.7m |
$11.2m |
|
Commodities |
($22m) |
($5.9m) |
$2.9m |
|
Money Market |
($2.1bn) |
$7.6bn |
($4.6bn) |
|
Equity |
($2.5bn) |
($1.9bn) |
($5.1bn) |
|
TOTAL |
($2bn) |
$5.4bn |
($8.9bn) |
Source: Morningstar
In Taiwan, there were 725 onshore funds registered with total assets of around NT$2.1trn ($67.3bn) as of end-2016, according to data from Taiwan’s Securities Investment Trust and Consulting Association (Sitca).
In spite of having more registered funds in 2016 (versus 672 in 2015), total assets decreased by around 3.6% from NT$2.2trn registered in end-2015, according to Sitca data.
China A-share equity funds
Among those equity funds that saw outflows, the five categories that bled the most include global large-cap value equity, US large-cap growth equity, Taiwan small/mid-cap equity, US large-cap blend equity and sector equity technology, according to Morningstar data.
Largest outflows – equity funds
|
Morningstar category |
2014 flow |
2015 flow |
2016 flow |
|
Global Large-Cap Value Equity |
($1.8bn) |
($1.8bn) |
($3.2bn) |
|
US Large-Cap Growth Equity |
$396.6m |
$790.7m |
($978m) |
|
Taiwan Small/Mid-Cap Equity |
($1bn) |
($661.4m) |
($913.3m) |
|
US Large-Cap Blend Equity |
$334.8m |
($39.1m) |
($696.3m) |
|
Sector Equity Technology |
($52.1m) |
($93.3m) |
($160m) |
Source: Morningstar
On the flipside, China equity – A-shares funds — had the largest inflows in the asset class, attracting a net $351m in assets in 2016. However, that is down about 60% compared to inflows of $879.6m in 2015.
Largest inflows – equity funds
|
Morningstar category |
2014 Flow |
2015 Flow |
2016 Flow |
|
China Equity – A Shares |
$160.9m |
$879.6m |
$351m |
|
Global Equity Income |
$54.9m |
$86.9m |
$209.7m |
|
Sector Equity Precious Metals |
$7.7m |
($28.8m) |
$177.2m |
|
Global Large-Cap Blend Equity |
$186.6m |
($161.2m) |
$165m |
|
Asia-Pacific ex-Japan Equity |
$330.6m |
$93.3m |
$115.8m |
Source: Morningstar
Besides China A-share equity funds, China equity and Greater China equity funds also had inflows last year, at $111.8m and $70m compared to outflows of $283.6m and $144.7m in 2015, respectively.
Fixed income outflows
Outflows dominated fixed income products. RMB bond funds had the biggest outflows during the year.
Largest outflows – fixed income funds
|
Morningstar category |
2014 flow |
2015 flow |
2016 flow |
|
RMB High Yield Bond |
$828.2m |
($118.7m) |
($238.3m) |
|
RMB Bond |
$323.2m |
($217.3m) |
($82.5m) |
|
RMB Bond – Onshore |
($10m) |
$480,899 |
($63.9m) |
|
USD Diversified Bond |
$26.2m |
($4m) |
($37.4m) |
|
Global Bond – USD Biased |
$8.7m |
$18.9m |
($28.6m) |
Source: Morningstar
On the flipside, Asia and global bonds were among the fixed income products with net inflows.
Largest inflows – fixed income funds
|
Morningstar category |
2014 flow |
2015 flow |
2016 flow |
|
Asia Bond |
($15.4m) |
$4.6m |
$188.9m |
|
Global Bond |
($200.9m) |
($270.5m) |
$160m |
|
Global High Yield Bond |
$459.9m |
($585.5m) |
$119m |
|
Fixed Term Bond |
– |
– |
$118m |
|
Asia High Yield Bond |
$56.2m |
$77.8m |
$83.6m |
