Japan Sees Notable Fund Inflows in March

May 17, 2011 (PLANSPONSOR.com) - Long-term fund flows in Asia were flat during March, but Japan garnered a notable $4.5 billion in net new money, $2.6 billion of which went to real estate funds.

According to data from Strategic Insight, an Asset International company, bond/high yield funds were the second largest category in Japan, posting a net inflow of $1.9 billion. Meanwhile, global bond funds posted a net outflow of $2 billion.  

In Korea, total inflows were $713 million in March, with equity Asia Pacific funds pulling in $1.3 billion. Equity emerging markets funds were the biggest loser, with net redemptions of 244 million.  

Fund flows in India took a hit in March, losing $9.7 billion in total. Money market funds lost $7.3 billion, and bond Asia Pacific funds posted a net outflow of $2.6 billion.  The highest gain – $296 million – was posted in the equity Asia Pacific category.  

China also took a hit, with long-term mutual funds posting an $8.8 billion net redemption.  Equity Asia Pacific funds lost $3.8 billion, while funds in the Mixed Flexible category lost $3 billion. The Guaranteed/Protected funds category saw a net inflow of $1.3 billion.  

Taiwan saw $562 million in net redemptions in March, with money market funds losing $1.1 billion. Equity Asia Pacific funds saw a net inflow of $318 million.  

Long-term funds in Hong Kong eked out a $132 million net inflow, led by equity Asia Pacific funds ($59 million) and bond Asia Pacific funds ($50 million).  

Singapore’s $411 million fund inflow in March was thanks to equity Asia Pacific funds, which pulled in $475 million.  

Long-term funds in Thailand posted a net redemption of $1.3 billion. Bond Asia Pacific funds were the least favorite category, losing $995 million. The largest gain – $105 million – was in the bond emerging markets category.  

Together, Malaysia and Indonesia saw a net inflow of $150 million, with investors in both countries favoring equity Asia Pacific funds ($117 million and $98 million in inflows, respectively).    

More about Strategic Insight is at http://www.sionline.com.