FMC Year-End AUM Reaches RMB2.87tr

Total AUM of the mutual fund industry reached RMB2.87tr in 2012, marking a new high for the sector since 2008. 

Statistics released by Galaxy Securities show that the combined AUM from eight of the top-ten FMCs surpassed RMB100bn by the end of 2012. The year’s top-five ranked firms in terms of total AUM did not alter from 2011. Minsheng Royal and Huatai-PineBridge are quickly climbing AUM rankings, thanks to recent fundraising results: Minsheng Royal raised RMB14bn from a MMF, while Huatai-PineBridge reached RMB20bn for its CSI 300 ETF. Industry analysts have commented that the launch of lower-risk products, such as MMFs, did not significantly contribute to FMCs’ profits, due to low management fees from these products. Regardless, many companies have expressed a belief that the demand for fixed-income products is likely to remain high in 2013, due to an uncertain outlook regarding mainland markets.