China Mutual Fund Series 3Q15

Fallout from the market fall

As stock market volatility continued well into the third quarter, and both institutional and retail investors remained wary of equity products, the public mutual fund sector AUM fell from RMB7.05tr to RMB6.68tr (USD1.05tr) in Q3. However, this drop was not as severe as expected: rather than fleeing from the market altogether, money flowed into fixed income products, namely MMFs, allowing companies with diversified product ranges to retain AUM. This quarter, we also provide in-depth analysis of the mutual fund non-core business segment, which grew by RMB1.1tr in 3Q15, largely unaffected by market turbulence. This Z-Ben Advisors report guides readers through established and developing types of non-core business, assessing their relative risk levels. Furthermore, we delve into the booming and opaque world of online/mobile phone distribution which we believe has become a key disruptive threat to the competitive landscape of the mainland mutual fund industry, one which will become central to fund marketing over the next three years.

For more information on this or other reports, please feel free to contact [email protected].