Calastone, the largest funds network, has just released its latest fund flow data tracking trends and movements in the investment landscape across Asia for 2024. The Fund Flow Index (FFI) data set is one of the industry’s most timely and up-to-date measures of fund flows, calculated from actual transactions taking place rather than survey data.
Investors across Asia continued to gravitate toward fixed income funds in 2024, marking a dramatic upswing, with net inflows surging nearly threefold compared to 2023. Equity funds in the region fell significantly out of favour, plunging from a positive inflow of USD1.9 billion in 2023 to an outflow of USD0.88 billion in 2024.
Key highlights from the latest data include:
- Fund inflows surged in 2024, more than double the year before reaching a record USD26.93 billion, driven by stabilising markets and a pivot by central banks to rate cuts
- Fixed income funds lead the charge, with net inflows of USD26.38 billion in 2024, surpassing the total combined net inflows of the previous five years
- Equity funds experience sharp outflows in 2024 the first time since 2019 as Asia loses investor favour
- Asia ESG funds saw a record USD3.5 billion in net outflows in 2024, a sharp reversal from the USD4.91 billion inflows of 2021
Justin Christopher, Head of Asia at Calastone, remarked: “2024’s fund flow data highlights the agility and adaptability of investors across Asia in responding to evolving market conditions. 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. Meanwhile, record-breaking outflows from ESG strategies point to growing scepticism around sustainable investments, as shifting market dynamics and wavering confidence continue to reshape investor priorities. As we move further into the year, we will monitor how investor behaviour continues to evolve through our fund flow data.”




