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New capital in Asia going into bonds

Bonds topped the asset classes in 2014 with the highest net new inflows in Asia, pulling in slightly more than equities, and Japan was the biggest recipient by country, according to data from Strategic Insight.

Despite investor concerns over the impact of an expected US interest rate hike this year, which is likely to put downward pressure on bonds, the asset class beat equities with $20.3bn in net new inflows of capital. 

Asia’s top five fund categories 2014

                                                 Net New Flows (US $Bn)

Bond Asia Pacific


Equity Sector/Other


Real Estate Equity


Bond Global


Bond High Yield


12 months to Dec 14
Australia is excluded
Internal fund of funds and fund of hedge funds are excluded except for Japan
includes long term funds only (i.e. Money Market funds are excluded)

Source: Strategic Insight


Judging by new capital inflows, investors have high hopes for the Japan markets. By country, Japan was clearly the region’s biggest recipient of new capital last year, registering $65bn in new inflows. 

Net New Flows in Asia 2014 (US$bn)







Hong Kong






Source: Strategic Insight

Part of the Mark Allen Group.