Latest Strategic Insight Global Reports


Strategic Insight Global offers weekly commentary, analysis, and data on industry developments worldwide. Global reports are available only to SI Global clients.

All reports are in PDF format [download Acrobat Reader] | Register for access


ETF FlowWatch - May 2016   Jun 27 2016
  ETF net flows worldwide remained $9 billion during May 2016, matching the prior month’s net deposits. Bond products garnered over $8 billion in net new money, and commodity (mostly gold products) as well as other ETFs collectively added almost $6 billion, while equity products experienced net withdrawals of $5 billion for the month. ETF assets edged closer to $3.1 trillion globally. Mercer Investment Fund 6 M-1 EUR Hedged was the biggest ETF new launch in May, collecting $347 million in net flows. The fund was launched near the end of May and is domiciled in Ireland. This ETF invests in bonds worldwide and is hedged to the Euro.

 
 
Global FlowWatch - April 2016   Jun 17 2016
  Globally, long-term mutual funds gathered $56 billion in net inflows during April, approximately half of the March result. Bond products led all major asset classes by gathering $60 billion, followed by mixed and “other” vehicles with over $34 billion collectively. On the contrary, equity funds suffered $39 billion in net redemptions. At the regional level, Local Europe, International/Cross-Border, and Asia regions attracted a similar aggregate of new investor money totaling approximately $15 billion each in net contributions. The U.S. region added about $10 billion, while Latin America saw outflows of $1 billion for the month.

 
 
ETF FlowWatch - April 2016   Jun 6 2016
  ETF net flows worldwide slowed down significantly to $11 billion during April 2016, compared to $41 billion of net deposits in March. Equity products only saw $2 billion in net flows, suffering a decrease of $18 billion from the prior month, while bond products recorded $7 billion in net new money. ETF assets stood at almost $3.1 trillion globally. In the U.S., equity products took in a moderate $ 7 billion amid the recovery of the equity market. Equity US – Large Cap led with nearly $ 5 billion of inflows, followed by Bond USD at $ 4 billion. On the other hand, Bond USD – Short Term suffered net redemptions of $ 2 billion.

 
 
Asia FlowWatch - April 2016   Jun 3 2016
  In April 2016, long-term funds in Asia (excluding existing funds in China, which report data on a quarterly basis) garnered $14 billion in net flows, $11 billion less than the amount collected in the previous month. Bond funds led with $12 billion, followed by guaranteed programs ($6 billion), mixed products ($3 billion), and real estate vehicles ($2 billion). On the other hand, equity funds saw net redemptions of $8.7 billion for the month. Asia Pacific and Guaranteed/Protected (mainly new funds in China) were the top selling categories, raising $12 billion and $6 billion, respectively. In contrast, Equity Asia Pacific experienced close to $7.8 billion in net outflows. At the product level, China’s guaranteed products Lion HeXin Guaranteed Mixed Fund and Penghua JinDing Guaranteed Mixed Fund took the lead this month, each collecting roughly $750 million in net new money. Both funds adopt a three-layer model and a CPPI strategy to pursue stable returns for investors.

 
 
Europe FlowWatch - April 2016   Jun 3 2016
  During the month of April, investors deposited a net €26 billion in long-term funds, roughly evenly split between local Europe and cross-border markets. Bond and ‘other’ products garnered the most new money at approximately €31 billion collectively. Meanwhile, equity vehicles experienced the most redemptions of €8 billion during the month.  At the category level, Bond High Yield funds led with over €7 billion in new money, while Alternative and Bond Europe took in about €4.5 billion each. As opposed to Equity Europe, Equity Asia Pacific, and Bond Convertible products which collectively experienced over €15 billion in net redemptions for the month.   UBS’s MMA II – High Yield product, a Bond High Yield fund domiciled in Luxemburg that is exclusively available for discretionary mandates of UBS, was the largest launch and bestselling fund in the month garnering over €5 billion.

 
 
The Rise of Alternatives, with a Focus on Absolute Return   May 31 2016
  Amid the various economic and political uncertainties in 2016 and beyond, including Federal Reserve’s interest moves, the U.K.'s “Brexit” vote and the U.S. presidential elections, investors have been overall cautious on their fund purchase activities. During the first three months in 2016, equity, bond, multi-assets and other alterative funds took in a merely $63 billion in net flows, about one-seventh of the amounted collected during the same period last year. Driven by the increasing investors’ needs for safety and income amidst market volatility, bond funds and “other” products (including alterative, absolute return, real estate and guaranteed funds) each attracted approximately $65 billion in net flows during Q1’16, which more than offset the net redemptions out of equity and mixed funds.

 
 
New Funds in Global Markets: Q1 2016   May 31 2016
  Long-term new funds in Asia, Europe, and Cross-Border markets gathered $59 billion in net flows during Q1’16, across nearly 1,200 new fund launches. Asia continued to dominate new product development, accounting for 60% of new fund launches and slightly more than 50% of net sales. New long-term product sales in Asia totaled $32 billion in Q1, $22 billion of which came from China, distantly followed by Japan with $3 billion. Guaranteed products led the way gathering $11.6 billion. Guaranteed funds continued to be attractive to Chinese investors as a safe haven amid the volatile stock market. Not surprisingly, the top-selling new fund list is dominated by guaranteed funds. There were 27 new guaranteed funds launched in China during Q1 2016. CCB Principal topped the manager list with over $1.4 billion of net sales from its two new guaranteed funds.