Asian investors consistently added to equity funds during the first half of 2026 while sharply reducing allocations to fixed income. It was a meaningful shift in portfolio positioning following the defensive stance that characterised much of 2025, according to the latest fund flow data from Calastone, the largest global funds network.
Having prioritised fixed income through much of last year, investors have entered 2026 with a more growth-oriented approach.
Equity funds attracted net inflows in every month of the first half, rising more than ninefold to $7.3bn from approximately $800m in the same period last year. On the other hand, fixed income funds moved into net outflows of $3.1bn in the first half, suggesting investors are becoming increasingly comfortable increasing exposure to growth assets as global markets continued to demonstrate resilience.
Multi-asset funds remained the strongest-performing asset class during the first half, attracting $17.0bn of net inflows and recording positive flows in every month, more than four times the combined net flows of equity and fixed income funds.
The consistency of demand suggests investors are increasing exposure to growth assets while continuing to value diversification, rather than adopting an outright risk-on approach.
Justin Christopher, head of Asia at Calastone, said: “One of the biggest changes we’ve seen this year is not simply stronger demand for equities, but a much weaker appetite for fixed income than we saw throughout 2025.”
“Strong equity market performance, underpinned in part by continued investment in AI and technology, has encouraged investors to focus on longer-term growth opportunities rather than individual headlines.”
Equity inflows cooled in April and May before rebounding sharply in June – the strongest month of H1, with net inflows of $1.9bn. The pattern represents a marked contrast with 2025, when the Trump administration’s tariff announcements prompted investors to reduce equity exposure during the second quarter before confidence gradually returned later in the year.
By comparison, the first half of 2026 suggests investors have become increasingly comfortable maintaining equity allocations despite ongoing geopolitical uncertainty. The continued resilience of global equity markets appears to have reinforced confidence in growth assets.
Fixed income experienced a notable shift in the first half of 2026 compared with the same period last year, recording US$3.1bn of net outflows in H1 2026 – a sharp reversal from the approximately $16.1bn of net inflows fixed income attracted in H1 2025, a swing of over $19.2bn in just twelve months.
Following modest inflows in January and February, bond funds moved into net outflows in March before weakening further in May and June. June recorded the largest monthly outflow of the period ($2.8bn), suggesting investors increasingly rotated away from defensive allocations as confidence in equity markets strengthened.