Across The Border | Mutual funds face ‘nuclear winter’ in a flat market
Last year, 67 stock-focused mutual funds were launched, raising 22.3 billion yuan, well below 2015 when 109 funds netted 309.3 billion yuan
Asset managers running equity-focused mutual funds are facing a “nuclear winter” as investors shy away from new fund launches.
Individual and institutional investors are giving the mainland’s 110 or so mutual fund houses the cold shoulder, making it difficult for them to raise fresh funds for stock purchases in the latest sign that overall market sentiment remains weak.
Last year, 67 stock-focused mutual funds were launched, raising 22.3 billion yuan in total, or 332 million yuan each, according to data provider Wind Information.
Few asset management firms are pinning their hopes on equity-based funds to bolster their growth
That was a far cry from 2015, when 109 funds targeting equity investment netted a combined 309.3 billion yuan, or 2.84 billion yuan each.
“Few asset management firms are pinning their hopes on equity-based funds to bolster their growth,” said Ivan Shi, research head of fund consultancy Z-Ben Advisors. “Instead, they are focusing on launching products that meet clients’ needs for wealth management.
“There’s little left for asset managers [dealing with equity-based funds] to doarket.”
The 67 stock-focused funds accounted for less than 6 per cent of the total 1,151 mutual funds launched in China last year. in the nuclear winter situation. This situation will last for a while until a bull run returns to the m