- Q2 2026 saw a divergence in Northbound MRF flows: equity and allocation funds swung from early-quarter redemptions to strong net inflows by end of June, while fixed-income funds endured persistent net outflows throughout the period.
- Within equity funds, flows were heavily concentrated in two JPMorgan products. JPMorgan Asia Equity High Income emerged as the top equity fundraiser. It was approved in late February 2026 and made available for mainland retail investors on April 13, while mainland institutional access is still pending. It attracted HKD 4.40 billion in net inflows in Q2. The strategy seeks a total income of 7% to 9% over the cycle, generated via a combination of 3% to 4% from investing in dividend-paying companies, and 4% to 5% from writing covered calls. JPMorgan Pacific Technology also drew strong investor interest on the back of the global technology momentum to garner HKD 2.86 billion in Q2 inflows. The strategy focuses on the leading technology companies in the Asia-Pacific (including Japan) region with long-term growth potential and sustainably high returns in three main thematic areas: digitized consumption, manufacturing leaders, and enterprise transformation.
- Among allocation funds, Pictet HK—Pictet Strategic Income dominated Q2 inflows. It posted HKD 5.68 billion in net inflows, bringing its year-to-date total inflows to HKD 16.36 billion, placing it at the top of the fund flows league table in both periods. Despite its name, income generation is not the central aim of this strategy. Rather, this highly flexible global allocation approach aims to deliver superior risk-adjusted total returns while offering downside protection. Strong year-to-date performance continued to fuel robust investor demand. Schroder Asian Asset Income also recorded a remarkable HKD 1.18 billion in Q2 net inflows and emerged as the allocation funds’ second-largest inflow driver after reversing from Q1 outflows. The strategy aims to provide attractive risk-adjusted income through investing in Asian equity (30%-70% of the portfolio), Asian fixed income (20%-70%), global assets (0%-20%), and cash (0%-20%). It has comfortably outpaced its Asia allocation category peers year-to-date.
- Fixed-income funds, by contrast, endured continuous monthly net outflows throughout the second quarter amid heightened volatility of USD bond yields. Moreover, most northbound MRF bond funds have approached their mainland sales caps and are currently suspended from new mainland subscriptions. JPMorgan Global Bond remained the biggest loser, with Q2 outflows of HKD 3.69 billion, bringing year-to-date net outflows to HKD 12.54 billion. Asian bond strategies JPMorgan Asian Total Return Bond and HSBC Asian Bond also suffered from meaningful outflows, each posting over HKD 2 billion net outflows in Q2.
Top 10 and Bottom 10 MRF Northbound Funds by 3-Month Net Flow
Top 10 and Bottom 10 MRF Northbound Funds by YTD Net Flow
- At the fund house level, Pictet, last quarter’s leader, maintained its position as the dominant flow leader, with Q2 net inflows of HKD 5.68 billion, driven entirely by its flagship global allocation fund. Schroders followed, recording Q2 net inflows of HKD 1.18 billion on the back of its flagship Asian allocation fund. HSBC, by contrast, ranked last among major houses with Q2 outflows of HKD 4.03 billion, bringing year-to-date redemptions to HKD 8.62 billion—driven primarily by redemptions from its Asian bond fund lineup. The firm’s head of Asian fixed income investment management, Alfred Mui, departed in May 2026, as part of a group-level reorganization. He was a seasoned credit investor with considerable experience in Asian credit markets.
Top MRF Northbound Fund Houses by 3-Month Net Flow
Top MRF Northbound Fund Houses by YTD Net Flow
- As of end-June 2026, JPMorgan retained the largest overall market share, with its northbound MRF product assets under management amounting to HKD 119.87 billion, despite mixed flows across its product lineup. The firm’s early-mover advantage and broad product suite, including the successful new MRF offering - JPMorgan Asia Equity High Income, helped offset persistent outflows from its bond funds since the start of the year. Pictet, meanwhile, surpassed HSBC to climb into second place, with its MRF product assets under management reaching HKD 32.54 billion, while HSBC slipped to third with HKD 27.64 billion.
Top MRF Northbound Fund Houses by AUM
- Fund quality remains a key consideration for investors. The following northbound MRF products carry 100% analyst-driven Morningstar Medalist Ratings, reflecting our conviction in the fund’s ability to outperform its category peers over the long-term.
Funds with 100% analyst-driven Morningstar Medalist Ratings
All flow and AUM figures provided in this article are at the fund level.
Data lists used in this article are based on data availability. Should any fund house wish to submit timely data, please feel free to contact Morningstar.
