FundFlash APAC January 2021 - Broadridge
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FundFlash APAC January 2021
FundFlash APAC January 2021
JANUARY OVERVIEW
FundFlash provides a summary of the regional trends and
developments in the funds market over the previous month. ACTIVE VS PASSIVE FLOW, $B FLOW SENTIMENT, %
▲17 B
The report is built using the Global Market Intelligence (GMI) funds 40%
module which tracks $50trn in global funds assets with unique views of
distributor and internationally sold business. ▲3 B ▲4 B
GMI Funds sits alongside our Institutional module and together is relied 60%
on by over 100 asset managers as their source for global asset
management market intelligence. Active mutual funds Passive mutual funds % of # funds with negative flows
All ETFs % of # funds with positive flows
3 YR FUND INDUSTRY ASSET & FLOW MOMENTUM, $B
THE MONTH IN REVIEW 3,500 AUM Cumulative net flow 450
2021 gets off to a strong start in APAC (ex-China), with active long-term 3,000 400
350
mutual funds garnering net inflows of US$17bn in January, while positive 2,500
300
net flows are also evident in passive mutual funds and ETFs. Japan, 2,000 250
Australia and Singapore lead net sales. Sentiment is boosted by vaccine 1,500 200
rollouts and hopes that the pandemic could soon be curtailed in APAC. 1,000
150
100
500 50
DISTRIBUTION 0
Digital sales will gain further traction, with more banks and asset Feb 2018 Jul 2018 Dec 2018 May 2019 Oct 2019 Mar 2020 Aug 2020 Jan 2021
managers allowing sales to be initiated online. This is affirmed in FLOWS BY INVESTMENT STYLE AND YEAR – CUMULATIVE, $B
Broadridge data, with retail platforms showing the strongest growth in
80
January for cross-border funds, followed by the Advisors/RIA/IFA channel.
60
PRODUCT 40
Thematic equity products lead sales flows this month. Demand for ESG 20
strategies will continue to grow this year as more managers position 0
-20
themselves in this space. Thematic funds in energy transition, low-carbon Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-40
and aqua sectors will also continue to draw investor interest.
-60
COMPETITION
The top-10 master groups by sales comprise of names from Japan, India 2019 Active 2019 Passive 2019 ETF
and South Korea, as well as global managers. Mitsubishi UFJ leads with 2020 Active 2020 Passive 2020 ETF
US$1.6bn in net inflows, followed by Mirae Asset with US$1.5bn. 2021 Active 2021 Passive 2021 ETF
Note: Excludes funds of funds, money market and pension funds. As Chinese data is updated on a quarterly basis, analysis of this market is
Source: Broadridge GMI © 2021
only included in quarter-end editions of FundFlash.FundFlash APAC January 2021
LARGEST MARKET NET FLOW, $B CROSS-BORDER CHANNEL, GROWTH %
DISTRIBUTION -5 B 0B 5B 10 B 0% 2% 4% 6% 8% 10% 12%
A new online platform set to launch in Hong Kong in Japan Retail Platform
Q2, called Teyk, will offer a performance-only fee Australia Advisors / RIA / IFA
structure across its entire product range. Teyk will SWF / Official Institutions
Singapore
calculate the performance of a customer’s portfolio
India Private Bank Distribution
on a daily basis. In months where the customer has
made money, a fee of 0.5% is charged on the total Hong Kong Corporate Treasury
AUM in the customer’s account. Its model will be South Korea Family Office
closely watched in the territory’s bank-dominated
Thailand Direct / Institutional Undefined
fund-distribution market.
Malaysia Bank Distribution
Meanwhile, the Investment Management New Zealand Asset Manager
Association of Singapore’s annual Investment Philippines Insurance Distribution
Managers’ Outlook Survey conducted in December
2020 has found that managers expect to see further Cross-border net flow Domestic net flow Round trip net flow Organic growth
erosion of profit margins, given the emergence of
robo-advisors offering low-cost solutions. They see TOP-10 PRODUCT NET FLOW, $B BOTTOM-10 PRODUCT NET FLOW, $B
this as among the top threats to the growth of asset
-10 B 0B 10 B 20 B -2 B -1 B 0B
management firms in Singapore.
Eq Themes Eq Eur - Passive
Eq Jap - Passive Hdge - Bnd
PRODUCT
Bnd APAC - Active Bnd Nth Am - Passive
The China Securities Regulatory Commission, Eq Glbl - Active Bnd Corp Nth Am - Passive
Shanghai Stock Exchange and Shenzhen Stock
Eq Glbl - Passive Tgt Mat
Exchange issued new rules to try and better
regulate the operations of index fund providers, and Bnd Gov Jap Eq Eur - Active
provide stronger protection for investors. The rules, MA - Alloc Bnd EM - Passive
implemented from 1 February 2021, cover the
Eq Nth Am - Active Eq Jap - Active
underlying index and product design of index funds
and ETFs. They are aimed at fostering greater Hdge - Eq Eq APAC - Passive
standardisation in how ETF and index products are Bnd HY - Active Bnd Jap - Passive
operated.
Cross-border combined net flows Domestic combined net flows Round trip combined net flows
Note: Excludes funds of funds, money market and pension funds. As Chinese data is updated on a quarterly basis, analysis of this market is
Source: Broadridge GMI © 2021
only included in quarter-end editions of FundFlash.FundFlash APAC January 2021
COMPETITION
Mitsubishi UFJ was the region’s leading master group in January as passive funds propelled the firm’s net sales, accounting for four of the six best-
selling passive funds (see next page). However, despite the strong total net inflow, the firm also saw the steep outflows fro m some products, equating
to US$2.4bn. We note that its Japanese peer, Nomura, saw the second steepest negative net flows of US$1.9bn. These redemption s, both from leading
players in Japan for index funds and ETFs, likely reflect some investor caution over expectations of a more flexible approach by the BOJ to its ETF buying
programme going forward.
Meanwhile, global ETF giants BlackRock and Vanguard were also among the top-10 master groups in January, with total net inflows of US$1.4bn and
US$656m, respectively. Two Vanguard funds – Vanguard International Shares Index and Vanguard Global Aggregate Bond Index (Hedged) – completed
the list of top-6 best-selling passive funds with net sales of US$167m and US$133m, respectively, while BlackRock’s BRJ I Shares Core Nikkei 225 was
ranked fifth for net sales of ETFs in January at US$456m.
POSITIVE vs NEGATIVE NET FLOW BY GROUP, $B (TOP AND BOTTOM 10)
5
Positive net flows Negative net flows
4
3
2
1
0
-1
-2
-3
Note: Excludes funds of funds, money market and pension funds. As Chinese data is updated on a quarterly basis, analysis of this market is
Source: Broadridge GMI © 2021
only included in quarter-end editions of FundFlash.FundFlash APAC January 2021
MONTHLY NET FLOW LEADERS
AUM, Net flow, Organic
Fund name Group Sector Fund market Launch date
$m $m growth
1 ICICI Prudential Business Cycle Fund Eastspring Eq India India Jan 2021 575 575 0%
Top Active Net Flow
2 HDFC Ultra Short Term Fund HDFC Bnd INR India Sep 2018 2,498 542 28%
3 JPMorgan Pacific Technology JP Morgan AM Eq Tech Hong Kong Aug 1997 1,084 447 76%
4 SBI Short Horizon Fund State Bank of India/Amundi Bnd INR India Aug 2007 3,630 437 14%
5 AM-One Global ESG High-Quality Growth Equity Fund (Unhedged) Mizuho Eq Global Japan Jul 2020 8,837 434 5%
6 ABITL US Multi-Asset Income Fund AB Mix Income Taiwan Jan 2021 380 380 0%
Top Passive Net Flow
1 MUKAM Japanese Ultra Long Term Government Bond Index Fund (Wrap) MUFG Bnd JPY Japan Dec 2020 1,348 1,353 27990%
2 Mitsubishi UFJ Fund Manager (Domestic Equity) MUFG Eq Japan Japan Oct 2007 583 574 5303%
3 MUKAM Developed Countries Equity Index Fund (Wrap) MUFG Eq Global Japan Dec 2019 590 330 129%
4 Vanguard Index Fund-Vanguard International Shares Index Vanguard Eq Global Australia Jun 1997 13,413 167 1%
5 Vanguard Global Aggregate Bond Index (Hedged) Vanguard Bnd Gbl Curr Australia Jul 2017 4,645 133 3%
6 MUKAM eMAXIS Slim Global Equity (All Countries) MUFG Eq Global Japan Oct 2018 883 121 16%
1 Nomura NF TOPIX ETF Nomura Eq Japan Japan Jul 2001 138,947 864 1%
2 Cathay Taiwan 5G Plus ETF Cathay Securities Eq Telecom Taiwan Dec 2020 1,201 546 95%
Top ETF
3 Nikko Listed Index Fund TOPIX Sumitomo Mitsui Trust Holdings Eq Japan Japan Dec 2001 64,614 517 1%
4 Samsung KODEX 200 Futures Inverse 2X ETF Samsung Eq Alt Inv/Lev South Korea Sep 2016 2,002 471 25%
5 BRJ I Shares Core Nikkei 225 BlackRock Eq Japan Japan Sep 2001 7,604 456 6%
6 MitsubishiUFJ MAXIS Nikkei 225 ETF MUFG Eq Japan Japan Feb 2009 17,886 400 2%
Fund name Group Sector Fund market Style AUM, $m
1 ICICI Prudential Business Cycle Fund Eastspring Eq India India Active 575
2
Top Launches
ABITL US Multi-Asset Income Fund AB Mix Income Taiwan Active 380
3 Taishin ESG Emerging Markets Bond Fund Taishin Financial Bnd Em Mkt Taiwan Active 324
4 TISCO Genomic Revolution TISCO Eq Biotech Thailand Active 309
5 Fuh Hwa Taiwan Good Income Fund Fuh Hwa Securities Investment Eq Taiwan Taiwan Active 283
6 HSBC Asia Multi-Asset High Income Fund HSBC Mix Income Hong Kong Active 219
Note: Excludes funds of funds, money market, pension funds and Thai target maturity bond funds (which tend to roll over inves tors’
Source: Broadridge GMI © 2021
assets). As Chinese data is updated on a quarterly basis, analysis of this market is only included in quarter-end editions of FundFlash.T H I S R E P O R T WA S B U I LT W I T H G L O B A L M A R K E T I N T E L L I G E N C E
GMI FUNDS GMI INSTITUTIONAL
Detailed Domestic and Cross-Border Detailed Global Institutional Market
Fund Market Intelligence across retail & Intelligence across all vehicles
institutional channels SalesWatch Money in
▪ Fund assets, flows and launches by Domestic & Motion ▪ Institutional assets and flows by
cross-border Comprehensive
product and region product, region and client type
analytics Institutional
▪ 88,000 open ended-funds globally 3 core ▪ Separate Account, Private Fund,
analytics
▪ Fund benchmarks, rankings and datasets Mutual Fund, CIT and ETF
named competitive positioning Analysis
▪ Advanced fund and competition ▪ Institutional Benchmarks and
analytics FundFile rankings
▪ Cross-border and distributor Sophisticated ▪ True Negotiated Fee analysis
named fund
analytics ▪ Named consultant analysis
analytics
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