Asian investor short-termism is seen as partly to blame for the shift, which came amid the region’s strong stock rally this year. Balanced and bond funds, by contrast, drew strong flows.
The firm has registered 13 retail funds and added a client service executive in Singapore, in addition to putting more retail products in Hong Kong. Taiwan is also a major focus.
The first two months of the year saw net buying of Asia ex-Japan strategies ahead of China products amid a return of risk appetite. Asean funds topped the investment return charts.
Last year saw more bond than equity funds sold to HK retail investors for the first time this century. They accounted for 44.4% of industry sales in 2011, compared with 43.5% for equity.
The agreement between the SFC and ASIC makes it easier for retail funds to penetrate both markets at the same time.