Allocations among Asian investors to fixed-income funds almost doubled during the first half of the year, according to data from global funds network Calastone.
Investments into fixed-income strategies totalled $3.3bn on a net inflow basis compared with $1.7bn for the first half of last year.
Investors sought to lock in higher yields as they bet that interest rates would also come down at the same time.
According to data from Calastone, allocations to fixed income were greatest in January and February, where they averaged $887m before falling to an average of $392m for the rest of the first half.
This drop coincided with a recalibration of expectations around interest rates as the higher for longer narrative took hold.
Conversely, the picture for equity funds was more mixed as outflows for the first quarter totalled $440m before allocations turned positive in May, largely due to strengthening conviction about a soft landing.
Meanwhile, allocations to multi-asset strategies came in at $445m on a net inflow basis.
“Analysing real-time transaction data on our platform shows investors in the region still have a strong preference for opportunities that can help insulate their portfolios from market shocks and uncertainty,” said Justin Christopher, head of Asia at Calastone.
“In the current environment, fixed-income fund managers have been a clear beneficiary of capital flows over the last 18 months, but we are starting to see flows broaden out back into equities as the ‘fear of missing out’ grows with global stocks grinding higher.”
