(China Alert) King of the MRF mountain

-Northbound inflows for MRF quadrupled in August
-New entrants continue to stumble
-The MRF rulebook is taking shape as distinct from QDII

Update: MRF flows are being dominated by one firm – JP Morgan Asset Management. Just released data for August show nearly RMB4bn (USD600m) of inflows for the program. By Z-Ben Advisors’ calculations, the firm has an iron grip (94%) on market share. The latest figures are not a one-off event as fundraising has steadily built up over the five months the fund has been in distribution. This trend has wider implications for the MRF program as a whole, as well as competition. In contrast to QDII, we are not seeing large new launches that quickly lose popularity.

We are tempted to quote ourselves on what JP Morgan is doing right in the MRF program. We will spare you the broken record on distribution strategies, investor education or choosing the right partner and product. That being said, a new entrant …

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