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Which HK funds gathered assets in Q1?

JP Morgan and Schroders were the top two asset gatherers in Hong Kong-domiciled active mutual funds in the first quarter of 2018.
Which HK funds gathered assets in Q1?
Gold sycee (Yuanbao) and gold coins dropping on liquid gold

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
Data: Morningstar, in US dollars, 31 March 2018.
Note: Value Partners has made FSA aware that Morningstar data for the firm’s funds are incomplete. We have removed the company from the ranking.

Part of the Mark Allen Group.