The amount of global sovereign fixed income with negative interest rates is up 5% since the end of April, according to Fitch Ratings.
Advanced economies have become the net receiver of market shocks while China and other emerging markets have turned into the sources, according to an IMF working paper.
As volatility roars back, with major markets all negative year-to-date, client expectations also go through wild swings.
Net flows into hedge funds by European investors decerased only marginally in 2015, according to Evestment data. The US saw strong outflows, contrasting with exponential growth in Asia.
In 2015, emerging market equity ETPs had outflows for the third consecutive year, while global ETPs had record high inflows, according to a Blackrock report.
About $105bn flowed out of Asia-domiciled mixed asset products in Q3, and total net flows from retail investors were down by more than half, according to data from Strategic Insight.
Asia-based fund selectors overwhelmingly hold a strong preference for European equities, according to a survey at FSA’s investment forums in Hong Kong and Singapore.
Asian investors have discovered multi-asset funds, following in the footsteps of their European peers. In the first half of the year, $192bn flowed into mixed asset funds according to figures from Strategic Insight.
Growing concerns in China and other emerging markets could lead to “a prolonged deceleration” and have a “severe knock-on effect across the EU and the US”, according to the most recent report on risk by the Economist Intelligence Unit.
Allocators and influencers in Asia take a positive view of managers who invest in their own funds – up to a point. Among them is Bryan Goh, Bordier’s chief investment officer in Singapore.