- MMF, mutual fund
A tale of recovery
As the mainland equity market recovered from the summertime correction and investors regained confidence in the market, public mutual fund industry AUM jumped up to RMB8.35tr (USD1.3tr). Traditional year-end window dressing can partly explain this growth, and institutional flows into MMF products were manifest this quarter, contributing to their RMB715bn of inflows. The long-lasting effects of volatility were evident in investors’ more conservative product type choices, with guaranteed funds emerging as the key product trend and bond funds also attracting investment.
This quarter’s report provides competitive analysis of FMC and subsidiary non-core business, both of which grew aggressively to total an AUM of RMB12tr by the end of the year. Furthermore, as 4Q15 saw the first MRF fund launches, we have introduced a new dedicated section to cover both southbound and northbound MRF funds. We also study the brain drain in the industry – a much higher number of portfolio managers (PMs) departed their posts in 2015 than ever before, leaving FMCs with a dearth of experienced personnel. Talent retention will be important to FMCs being able to capitalize on market trends and demand shifts as volatility looks set to continue throughout 2016.
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