-A significant decrease in MRF flows in September was due in part to a deliberate decision
-MRF managers must focus on product rollout strategies and domestic agent choice

Update: What a difference a single month can make. Net northbound MRF flows slowed significantly in September, from the RMB4bn a month earlier to September’s RMB560m. What is more interesting than these numbers is the cause for the slowdown: the main reason being a voluntary limit on new subscriptions due to concerns about capacity. Z-Ben Advisors believes this demonstrates the challenge of coordinating a complex execution strategy from offshore. For those bulge bracket managers looking on from the MRF pipeline, there is one thing to think about: domestic agent coordination.

Last month, we referred to JP Morgan as the king of MRF mountain but the crown should probably be shared with China International Fund Management (CIFM). The decline in net new inflows is more than likely the deliberate result of …

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