Thursday, October 29, 2020
 
Columnist
Martin Hennecke

Fund sales rebound 48pc to US$6.8b
 
16/10/2020
 
<p>Hong Kong&#39;s gross fund sales rebounded by 48 percent to US$6.8 billion (HK$53.04 billion) in August from a low of US$4.6 billion in April, according to the Hong Kong Investment Funds Association.</p><p>The fund industry saw a net outflow of US$3.7 billion in the first eight months, and gross sales plunged 16 percent year-on-year to US$54.5 billion.</p><p>&quot;In March, the World Health Organization characterized Covid-19 as a pandemic. Investors were worried that the outbreak would have devastating impact on the global economy, thus quickly took risk off the table. As a result, the industry recorded net outflows of US$8.4 billion in a single month of March,&quot; said HKIFA chairman Nelson Chow.</p><p>He continued: &quot;However, global central banks have responded swiftly by adopting dovish monetary policies, as well as by introducing other supporting measures.</p><p>&quot;With interest rates maintained at historical low levels, investment sentiment has started to improve and global asset prices start to rise.</p><p>&quot;Since April, the industry has almost consistently registered monthly net inflows.</p><p>&quot;In total, between April and August, the industry registered robust aggregate net inflows of US$1.5 billion, and the trend has remained positive.&quot;</p><p>On a year-to-date basis, bond funds account for about 48 percent of gross fund sales.</p><p>Among all the key fund categories, equity funds came second, attracting gross inflows of about US$16 billion, which accounts for close to 29 percent of the industry total. Compared with the same period of last year, gross sales saw a 52 percent increase.</p>

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