China Inflows Boost Fund
Pictet global multi-asset fund triples to five billion dollars on massive China inflows
Anonymous
Swiss asset manager Pictet's flagship global multi-asset fund has tripled in size to $5.1 billion this year, driven by a surge of Chinese retail investors seeking overseas assets. The Pictet Strategic Income Fund grew from just $1.6 billion at the start of 2025, according to Reuters, as mainland Chinese savers poured money into the fund through a legal cross-border investment scheme.
About 60% of the fund's new money came from mainland China via the Mutual Recognition of Funds (MRF) scheme, which lets Hong Kong funds sell to mainland investors. The fund was the top performer in this channel during the first half of the year, pulling in HK$16.3 billion ($2.08 billion) in net inflows, according to Yahoo Finance.
China Opens Gates to Overseas Investment
For years, Chinese authorities blocked many outbound investments. Now they're shifting strategy. Beijing has cracked down on what it calls "illegal" cross-border securities trading. The goal is clear: funnel Chinese money into legal channels instead, protecting retail investors in the process.
The Mutual Recognition of Funds scheme is Beijing's answer. It lets Chinese retail savers buy Hong Kong-based funds legally. This framework opened the floodgates for funds like Pictet's to capture massive inflows from a huge, hungry investor base hungry for global diversification.
One Fund Dominates the MRF Pipeline
Pictet's Strategic Income Fund has become the standout winner. Reuters reports it led all 34 funds tracked by Morningstar in mainland net inflows via the MRF channel during the first half of 2025. It attracted HK$16.3 billion ($2.08 billion) — more than double many competitors.
The fund's strong track record helped. It gained 18% in 2024 and is up 17% for the first eight months of this year, according to Yahoo Finance. That performance speaks louder than marketing to retail investors hunting for reliable returns abroad.
Why Chinese Investors Are Moving Fast
Chinese savers face a dilemma at home. Returns on bank deposits are thin. Stock market volatility unnerves many. Overseas funds offer something different: diversification, professional management, and potential for steadier gains. The MRF scheme removes the legal uncertainty that once made foreign investing risky.
Pictet's timing is perfect. As China's economy slows, affluent mainland investors are rushing to deploy capital outside their borders. A $5 billion fund from a trusted Swiss manager becomes a magnet. The inflow rate suggests this trend is far from over — Pictet's $3.5 billion gain in nine months hints at strong momentum ahead.
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