Greece, the expected US rate hike and China’s slowing growth all roiled markets in the first half. The unusual capital flows were likely due to investor concerns over increasing volatility in global markets, something mixed asset promises to mitigate.
New net capital flows into equities and bonds were also up compared to the first half in 2014, but mixed asset funds were the most popular asset class by a distance. Flows into multi-asset funds from Asia are now even higher than those from Europe. According to Morningstar, they ‘only’ poured in net €102.5bn into multi-asset funds during the same period.
In fact, the total amount of all new capital flowing into Asia during the first half of 2015 more than doubled to $370bn.
*Asia ex-Australia. Internal fund of funds and fund of hedge funds excluded for all markets except Japan.Source: Strategic Insight, Simfund Global Basic