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Fund Flow Tracker
Slowing, but still growing
Fund flow data: Inflows slow across Asia ex-Japan
Inflows curbed… This week’s EPFR data show a continued moderation in
Asia Ex-Japan fund inflows, from net subscriptions of US$1.5bn four weeks
ago, to US$480mn last week, to US$216mn this week – albeit still the 13th
week of consecutive inflows. In a similar fashion to last week, inflows across
most markets broadly slowed; but unlike last week, China-focussed funds also
suffered the slowdown.
...without China surge. Specifically, subscriptions to China-focused funds
slowed from US$360m last week to US$16mn this week -- significantly below
YTD averages. Greater China fund inflows (which also include Taiwan and
Hong Kong) remained positive, but muted compared to recent levels. Taiwandedicated
funds, though, bucked the trend in Greater China, reversing last
week’s outflows and reporting net subscriptions significantly above YTD
averages. Hong Kong-focussed funds saw accelerating of outflows WoW.
No joy for Asia ex-Japan’s developed markets. Similar to (developed
market) Hong Kong funds, Singapore-focussed funds suffered accelerating
redemptions WoW. But emerging country funds were not exempt: India-,
Malaysia-, and Thailand-focussed funds also saw their second consecutive
week of net outflows -- albeit at a slower rate versus last week. Subscriptions
to Indonesia- and Philippines-focused funds remained positive.
Korea fund subscriptions not immune to tensions. Given the recent
increase in military tensions on the Korean peninsula, we were not surprised
to see a reversal of recent fund subscriptions this week. Redemptions from
Korea-focussed funds reached their highest levels since September.
Japan: first net inflows in nine weeks. Unlike the developed Asia ex-Japan
markets, the developed Asia Pacific markets of Japan and Australia both
recorded net inflows – Japan’s first in nine weeks. However, the more broadly
focussed Asia Pacific-benchmarked funds still recorded net outflows WoW.
Broader GEM fund net subscriptions remained positive and above YTD
averages, whereas BRIC-focussed funds returned to net outflows.
Local exchange data: Foreign net-selling rules the week
Net-selling re-emerges across much of Asia ex-Japan. Foreign netpurchases
on the Korean, Thai and Taiwanese exchanges dipped back into
the negative -- led primarily by the US$252mn of net-selling in militarily
troubled Korea – pulling the aggregate number across all six markets where
high-frequency data is available into net-selling territory. The Philippines, for
its part, continued to see net selling, as previously.
…but net-buying in India and Indonesia sustains. The Indian exchanges
continued to report positive, albeit waning, foreign net equity buying; and
Indonesia sustained low but positive net purchases.
Net foreign buying across all frontier markets: Pakistan led foreign net
buying of equities among the frontier markets, and even Sri-Lanka enjoyed a
reversal of its recent foreign net-selling streak. Vietnam has now seen net
buying for 36 consecutive weeks.
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