China Mutual Fund Series: Quarterly Assessment (2Q11)

Z-Ben Advisors’ latest quarterly assessment examines major trends affecting the Chinese mutual fund industry. A preview of the upcoming report is attached. Major developments of the quarter are examined in detail and placed within the context of China’s rapidly maturing mutual fund industry. Several of the significant shifts that occurred include:

• Performance: Most equity-centric funds saw declines in performance and investors are likely waiting for another rebound before cashing out at par value.
   
• Launch Channels: A severe distribution bottleneck meant that many small- and mid-tier FMCs were hard pressed to use new product launches to draw new AUM and gain market share.
   
• QDII: The second quarter proved that FMCs need to use their QDII products as innovative platforms, and not simply rely on excess demand to support Asia ex-Japan allocation. There is now a clear split in demand for the two types of products.
   
• Top-Tier: Large firms are typically best able to weather market downturns, and the second quarter was no exception. Several top-tier firms also had strong and stable returns, which will put them in a better position to mitigate against outflows in the coming months.
   

The Quarterly Assessment also contains a regular overview of product performance, leaders and laggards, and new product launches, as well as projections for the coming year.

For more information, please contact us at info@z-ben.com.

Please see the Sample below.