JP Morgan, the largest firm by assets in mutual funds domiciled in the territory, gathered net $865.5m of new assets, Morningstar data show. Its two most successful funds were the JP Morgan Asia Equity Dividend Fund and the JP Morgan Multi Income Fund.
The firm, however, also suffered the highest net outflows among all Hong Kong-domiciled funds, from its Asian Total Return Bond Fund. The fund is approved for northbound sales on the mainland through the China-Hong Kong Mutual Recognition of Funds scheme, which has seen, in aggregate, record outflows in the early 2018.
Net flows of Hong Kong-domiciled active mutual funds
| Firm | AUM | Q1’18 net flows |
| JP Morgan | 20.08bn | 865.5m |
| BOCI-Prudential | 8.03bn | −31.8m |
| Schroders | 6.69bn | 548.5m |
| HSBC | 5.62bn | −505.9m |
| Pinebridge | 5.1bn | 88.3m |
| Fidelity | 4.41bn | −199.7m |
| BEA | 3.64bn | 185.5m |
| Principal | 2.59bn | 70.7m |
| Amundi | 1.09bn | 357.1m |
Data: Morningstar, in US dollars, 31 March 2018.
Amundi was the most successful firm in growing its mutual funds business in the territory on the relative basis. Its AUM grew by 33.7% in the first three months of 2018, thanks to the net $279m inflows into the Amundi HK Balanced Fund. The fund more than doubled its assets since December 2017, and was the second highest asset gathering fund in our ranking.
Top asset-gathering funds
| Fund | AUM | Q1’18 net flows |
| JP Morgan Asia Equity Dividend Fund | 2.02bn | 374.6m |
| Amundi HK Balanced Fund | 463.5m | 279.3m |
| JP Morgan Multi Income Fund | 6.08bn | 265.5m |
| Schroder Asian Asset Income Fund | 5.16bn | 259.2m |
| HSBC China Multi-Asset Income Fund | 823.7m | 184.8mm |
Data: Morningstar, in US dollars, 31 March 2018.
Top asset-losing funds
| Firm | AUM | Q1’18 net flows |
| JP Morgan Asian Total Return Bond Fund | 3.27bn | −527.3m |
| HSBC Asia High Income Bond Fund | 1.31bn | −380.2m |
| HSBC Asian Bond Fund | 1.98bn | −212.5m |
| Fidelity GIF Hong Kong Equity Fund | 4.32bn | −211.3m |
| HSBC Asian High Yield Bond Fund | 785.2m | −131.4m |
Data: Morningstar, in US dollars, 31 March 2018.
In general, income-oriented and mixed-asset funds saw the biggest inflows in the first quarter of 2018, while fixed income funds saw net outflows. As many as three HSBC Asian bond funds are among the top five funds with highest net outflows.
Hong Kong-domiciled mutual funds
| Fund Category | AUM December 2017 | AUM March 2018 | Q1’18 net flows |
| Equity | 31.33bn | 31.8bn | 548.3m |
| Mixed Assets | 14.73bn | 16.09bn | 1.82bn |
| Fixed Income | 15.92bn | 14.76bn | −940.6m |
| Total | 63.85bn | 64.66bn | 1.56bn |
