The global funds industry may have suffered the biggest outflows since the 2008 financial crisis, but investors in Asia Pacific have weathered the bear market better than their global peers, according to industry data.
The 2022 Global Fund Flow Index produced by funds network Calastone showed that Asia Pacific equity funds enjoyed inflows last year while UK and Europe saw significant outflows.
The region also saw smaller declines in assets under management compared to the global average.
Global AuM peaked at US$70.9 trillion at the end of 2021 but had fallen by 21% to $56.2 trillion by the end of September 2022. In contrast, AuM in Asia Pacific fell by one-seventh, with the biggest decline in Japan mainly due to the weak yen.
However, funds trading volume was markedly down in Asia compared to other regions when trading activity was high due to market volatility.
“Asia Pacific’s investors have behaved a little differently to their peers elsewhere,” said Justin Christopher, head of Asia at Calastone.
“A large weighting in Asian markets that have benefited from rising interest rates, as well as resources companies that have enjoyed high commodity and energy prices, has helped support AuM in the region. Investors in Singapore, Hong Kong and Taiwan clearly shied away from the bear market too, but they chose to wait until calmer times return,” added Christopher.
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