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TraHK blamed for fund outflow

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Hong Kong's unit-trust industry suffered its first net outflows of last year in November despite recording the year's second-highest monthly gross sales.

The figures indicated mixed investor sentiment and some heavy asset re-allocation activity among private investors, chiefly related to the Tracker Fund.

The Hong Kong Investment Funds Association said net outflows in November totalled US$77.77 million.

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Gross inflows reached $701.89 million, up 54 per cent or $455.73 million from October, while gross outflows amounted to $779.66 million.

That was the highest monthly redemption figure for the year to date, while inflows were the second-highest for the year, behind a peak in July of $729.13 million.

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'While there has been an overall improvement in the investment sentiment, which prompts more investors to invest in funds generally, outflows increased due to profit-taking, re-allocation of assets, and also likely due to investments in TraHK,' explained IFA chairman Murray Simpson.

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