Asian Fund Investors Move Sharply Into Fixed Income, Exit Equities – Calastone

Editorial Staff

27 January 2025

Investors across Asia continued to gravitate towards fixed income funds in 2024, reflecting a “dramatic” upswing, with net inflows rising by almost three times from 2023 levels, according to fund data from .

Equity funds fell out of favour, flipping from an inflow of $1.9 billion in 2023 to an outflow of $0.88 billion in 2024, the funds network said.

Bond investments were the most significant driver of inflows across Asia in 2024. The region recorded $26.38 billion of net inflows into fixed income strategies, surpassing the total combined net inflows of the previous five years. This trend mirrors a global shift towards fixed income, caused by falling interest rates and cautious economic sentiment.

Inflows in Hong Kong rose from $3.8 billion in 2023 to $11.67 billion in 2024, more than tripling, while Singapore doubled from $3.01 billion to $6.49 billion.

“The decisive pivot towards fixed income reflects a strategic response to lower interest rates, while sharp equity fund outflows, coupled with sustained demand for mixed asset funds, underscore the importance of diversification in navigating uncertainty,” Justin Christopher, head of Asia at Calastone, said.

Mixed asset funds have shown resilience in turbulent markets, posting net inflows of $1.43 billion in 2024. While a significant drop from the record $11.8 billion seen in 2021, it reflects continued investor interest, even as overall market conditions remain challenging, Calastone said.