(China Alert) Mutual funds: Insti waves and wipeouts

-Many FMCs saw positive changes in AUM as the market shifted away from last year’s volatility
-Tianhong, ChinaAMC and ICBC Credit Suisse were top of the market share rankings at the end of 1H16
-Some JVs are falling further behind their domestic peers

Update: After navigating market ups and downs for over a year, mutual fund companies had to remember how to attract flows in times of relative market dormancy toward the end of 1H16. Even in dormant times, speedy adaptation was the defining characteristic of firms able to rise in the AUM rankings. In this case, adjusting to rising institutional demand. There was also a notable number of joint ventures that seemed to miss the boat entirely, running strategies more suited to the first half of last year. Z-Ben Advisors has identified that firms of all sizes are now preparing for new fund flows (both institutional and retail) and increased competition expected in the second half of the year.

This quarter, firms needed to understand where new institutional funds were coming from…

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