Asia Funds See $12B in Inflows in August

October 12, 2011 ( - During the month of August, long-term funds in Asia (excluding India and China which, with exception of new fund IPOs, report assets on a quarterly basis) collected $12 billion in net flows despite the market volatility due to the U.S. credit downgrade and an intensifying European sovereign debt crisis.

According to Strategic Insight, an Asset International company, Japan contributed $9.2 billion or three-fourths of the net new money. Equity Asia Pacific ($4.8 billion), Bond Asia Pacific ($2.2 billion), and Real Estate funds ($2.2 billion) topped the fund flow chart for Japan in August.  

Korea ($5.2 billion), Hong Kong ($983 million), and Thailand ($194 million) also saw significant inflows for the regions.   

In Korea, Money Market funds ($3.9 billion) and Equity Asia Pacific funds ($2.2 billion) were the clear leaders in August. In Hong Kong, Bond Asia Pacific ($343 million), Equity Asia Pacific ($277 million), and Mixed Flexible funds ($226 million) were favored, while in Thailand, investors preferred Guaranteed/Protected funds ($509 million), followed by Commodities ($382 million).  

SI data shows Nomura’s Nikkei 255 Index Linked Listed Investment topped the best-selling list in the region with $1.1 billion in flows in August. Moreover, ICBCCS Tianyi Bond in China, launched by a JV fund firm between ICBC and Credit Suisse, was the top new fund attracting $0.8 billion in net flows for the month.

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