Total Net Assets (TNA) of Funds in Asian Markets by Domicile
Regional asset trends across Asia in 26Q1 reflected a broad moderation in momentum following the exceptionally strong expansion observed throughout 2025, with total net assets declining 5.1% quarter-on-quarter to US$8.77 trillion, although remaining up 13.1% year-on-year. The quarterly pullback appears largely driven by market volatility, valuation normalization, and more cautious investor positioning amid rising macroeconomic uncertainty, particularly surrounding global growth expectations, trade dynamics, and monetary policy direction. Nevertheless, the overall year-on-year expansion indicates that underlying structural demand for Asian assets remains intact, supported by long-term capital formation, domestic wealth accumulation, and continued institutional participation across major regional markets.
China remained the dominant market in the region with total net assets of US$4.84 trillion despite experiencing a 7.4% quarterly decline. The contraction likely reflects weaker equity market performance, persistent concerns surrounding domestic growth conditions, and continued investor caution toward the property sector and broader macroeconomic outlook. However, China still recorded a solid 11.8% year-on-year increase, suggesting that despite near-term volatility and sentiment weakness, the market continues to benefit from its large domestic investor base and ongoing capital market development. The sharp quarterly decline also highlights the extent to which investor confidence remains fragile amid inconsistent recovery signals and uncertainty over the effectiveness of policy support measures.
India posted one of the larger quarterly declines among major markets, with assets falling 9.4% to US$795.3 billion, although the market remained modestly positive year-on-year. The correction likely reflects profit-taking after a prolonged period of strong performance, alongside valuation concerns and temporary risk-off positioning by global investors. Despite the near-term moderation, India’s longer-term structural outlook remains constructive, supported by strong domestic economic growth, rising retail participation, infrastructure expansion, and improving corporate earnings fundamentals. The relatively resilient year-on-year growth suggests that the recent weakness may represent consolidation rather than a deterioration in the broader investment thesis.
Korea also experienced a notable quarterly decline of 12.4%, one of the weakest performances in the region, as assets fell to US$424.7 billion. The decline may have been driven by heightened sensitivity to global trade conditions, semiconductor cycle volatility, and external demand uncertainty. Korea’s market remains highly exposed to export-oriented industries and technology supply chains, making it particularly vulnerable to shifts in global manufacturing sentiment and cyclical technology demand. Nonetheless, the market still delivered positive year-on-year growth of 6.5%, indicating that underlying structural competitiveness in advanced manufacturing and technology remains supportive over the medium term.
In contrast, Taiwan continued to outperform, with total net assets rising 5.3% quarter-on-quarter and 29.7% year-on-year to reach US$374.2 billion. Taiwan’s strong momentum reflects continued investor confidence in the semiconductor and artificial intelligence supply chain, with global demand for high-performance computing and advanced chip manufacturing remaining exceptionally robust. Taiwan has increasingly emerged as one of the primary beneficiaries of the global AI investment cycle, and the sustained growth in assets underlines its strategic importance within global technology markets. The resilience of Taiwan also contrasts sharply with the weakness seen in mainland China, reinforcing the broader trend of investors favoring technology-centric Asian exposures with stronger earnings visibility and more stable policy environments.
Japan remained one of the region’s most stable markets, with total net assets broadly flat quarter-on-quarter at US$1.67 trillion while recording a strong 23.8% year-on-year increase. The stability reflects continued support from corporate governance reforms, improving shareholder returns, and relatively resilient domestic economic conditions. Japan has continued to attract both domestic and foreign institutional inflows due to its combination of earnings recovery, undervalued equities, and ongoing structural reforms aimed at improving capital efficiency. The market’s ability to maintain asset levels despite broader regional weakness suggests that Japan continues to be viewed as a relatively defensive developed-market allocation within Asia.
Singapore recorded the strongest quarterly rebound in the region, with total net assets surging 55.6% quarter-on-quarter to US$125.3 billion. The sharp recovery likely reflects significant institutional inflows, wealth management activity, and regional capital repositioning into Singapore’s financial platform amid heightened geopolitical and macroeconomic uncertainty elsewhere in Asia. While year-on-year growth remained marginally negative, the strong quarterly rebound suggests renewed investor confidence in Singapore’s role as a regional safe-haven financial center and cross-border investment hub.
Among Southeast Asian markets, Indonesia and Malaysia continued to show resilient growth trajectories. Indonesia recorded the strongest year-on-year growth in the region at 39.6%, supported by improving domestic economic conditions, commodity-linked tailwinds, and growing investor participation. Malaysia also delivered steady growth both quarterly and annually, reflecting relatively stable domestic fundamentals and supportive institutional flows. Thailand experienced a modest quarterly decline but remained positive year-on-year, suggesting that domestic growth concerns and political uncertainty may have tempered investor sentiment in the short term. Meanwhile, the Philippines and Vietnam remained comparatively weak, with the Philippines posting both quarterly and annual declines, while Vietnam remained broadly stagnant, indicating continued challenges in attracting sustained capital inflows relative to larger regional peers.
Figure1:The Net Asset Value by Domicile
Source:LSEG Lipper, as of 2026/03/31
Total Net Asset Value (TNA) of Funds in Asian Markets by Asset
The asset landscape of Asia region in 26Q1 reflected a more cautious and defensive investment environment following the strong expansion observed throughout 2025, with several major asset classes experiencing moderation amid heightened macroeconomic uncertainty, market volatility, and shifting investor risk appetite. Equity remained the largest asset type at US$3.25 trillion despite declining 4.2% quarter-on-quarter, although it continued to post robust year-on-year growth of 25.1% in the region. The quarterly decline likely reflected profit-taking, valuation normalization, and weaker market performance across several key regions, particularly China and parts of emerging Asia. Nevertheless, the strong annual growth underscores the resilience of global equity demand over the longer term, supported by continued investor exposure to structural growth sectors such as technology, artificial intelligence, and advanced manufacturing. Investors appear to remain selectively constructive on equities despite shorter-term volatility, favoring markets and sectors with stronger earnings visibility and secular growth characteristics.
Money Market funds, the second-largest category at US$2.55 trillion, declined 7.1% quarter-on-quarter but still increased 6.5% year-on-year. The decline suggests that some investors have begun redeploying defensive liquidity holdings into higher-return opportunities after maintaining elevated cash allocations during periods of uncertainty. However, the still-elevated level of money market assets indicates that investors remain cautious and continue to prioritize liquidity and capital preservation amid uncertainty surrounding global growth, interest rates, and geopolitical developments. The persistence of large money market balances reflects an investment environment where investors remain reluctant to fully commit risk capital despite improving opportunities in selected asset classes.
Bond funds fell 4.4% quarter-on-quarter to US$1.89 trillion, although annual growth remained positive at 7.7%. The decline likely reflects ongoing uncertainty surrounding the global interest rate outlook, shifting expectations regarding monetary easing cycles, and pressure on fixed income valuations amid fluctuating yield environments. Investors appear increasingly selective within fixed income markets, balancing the appeal of higher yields against concerns over duration risk and slowing economic growth. The relatively moderate year-on-year increase suggests that bonds continue to play an important diversification and income-generating role in portfolios, although investor enthusiasm has softened compared with periods of peak rate expectations.
Commodity assets continued to demonstrate exceptional momentum, surging 23.5% quarter-on-quarter and 201.4% year-on-year to US$140.7 billion, making commodities the strongest-performing asset class by growth rate. The sustained increase reflects rising investor demand for inflation hedging, geopolitical risk protection, and exposure to structural themes linked to energy transition and resource security. Strong flows into commodities likely also benefited from renewed interest in precious metals and industrial materials amid persistent concerns surrounding supply chain resilience, fiscal expansion, and global trade fragmentation. The sharp acceleration suggests commodities are increasingly being viewed not only as cyclical inflation hedges but also as strategic long-term allocations within diversified portfolios.
Alternatives continued to gain traction, with assets rising 9.7% quarter-on-quarter and 24.7% year-on-year to US$92.7 billion. The steady expansion highlights growing investor demand for diversification beyond traditional asset classes, particularly in an environment characterized by higher volatility and more uncertain correlations between equities and bonds. Institutional investors in particular continue to increase allocations toward private markets, infrastructure, hedge funds, and alternative income strategies in search of enhanced returns, portfolio resilience, and reduced dependence on public market performance. The continued growth in alternatives reflects a broader structural shift in asset allocation strategies toward more diversified and less benchmark-dependent investment approaches.
Mixed Assets remained relatively stable at US$780.8 billion, declining only 0.6% quarter-on-quarter while recording healthy year-on-year growth of 16.0%. The resilience of balanced strategies suggests that investors continue to favor diversified multi-asset solutions capable of navigating uncertain market conditions through dynamic asset allocation and risk management. Mixed asset strategies remain attractive for investors seeking participation in equity upside while mitigating volatility through fixed income and defensive exposures.
Real Estate experienced the most dramatic quarterly rebound, surging 696.3% quarter-on-quarter to US$48.7 billion after collapsing to extremely low levels in late 2025. Despite the strong rebound, assets remained down 45.8% year-on-year, indicating that the sector continues to face significant structural challenges. The sharp quarterly increase likely reflects a recovery from unusually depressed levels rather than a full normalization in investor sentiment. Commercial real estate markets globally continue to face pressure from higher financing costs, changing workplace dynamics, and weaker demand across certain property segments, although selective recovery opportunities may be emerging as valuations adjust.
Figure2:The Net Asset Value by Asset
Source:LSEG Lipper, as of 2026/03/31
Estimated Net Flows of Funds in Asian Markets by Domicile
Estimated net flows of funds in Asian markets by domicile country showed a dramatic surge in 26Q1, with total net inflows rising to US$264.0 billion compared with net inflows of US$105.6 billion in 25Q4 and net outflows of US$31.3 billion in 25Q3, representing a substantial quarter-on-quarter acceleration in regional capital allocation momentum. The sharp rebound was overwhelmingly driven by China, which recorded an extraordinary US$4.84 trillion of estimated net inflows in 26Q1 compared with net inflows of US$115.9 billion in 25Q4 and net outflows of US$25.3 billion in 25Q3. The scale of the increase marks by far the most significant absolute and percentage change across the region and suggests a major normalization or structural reallocation of capital back into China-domiciled funds following prolonged periods of investor caution. The turnaround likely reflects a combination of policy stimulus expectations, stabilization in domestic market conditions, and large-scale institutional repositioning into Chinese assets after extended underweight positioning throughout much of 2025. The sharp recovery also substantially altered the overall regional flow profile, transforming Asia from a mixed and volatile allocation environment in 2025 into one dominated by renewed China-led inflow momentum in early 2026.
Japan remained the second-largest destination for estimated net fund flows, with inflows reaching US$1.67 trillion in 26Q1 compared with US$12.2 billion in 25Q4. Although the magnitude of the increase appears exceptionally large relative to prior quarters, the trend reinforces Japan’s growing attractiveness as a regional safe-haven equity market supported by corporate governance reforms, improved shareholder returns, stable macroeconomic conditions, and strong foreign institutional participation. Japan had already maintained consistently positive flows throughout 2025, unlike several regional peers, and the sharp expansion in 26Q1 further highlights the market’s strengthening position as a preferred developed-market allocation within Asia.
India also recorded a substantial rebound, with estimated net inflows reaching US$795.3 billion in 26Q1 after consecutive quarters of net outflows, including US$8.7 billion of redemptions in 25Q4 and US$4.8 billion in 25Q3. The sharp reversal indicates renewed investor confidence in India’s long-term growth outlook following a period of consolidation and valuation-related caution. The recovery likely reflects improving risk appetite toward domestic growth-oriented markets, continued strength in macroeconomic fundamentals, rising retail investor participation, and expectations for sustained corporate earnings expansion. The scale of the turnaround suggests that investors continue to view India as one of the region’s strongest structural growth opportunities despite intermittent volatility and concerns over elevated market valuations.
Taiwan recorded estimated net inflows of US$374.2 billion in 26Q1 compared with net inflows of only US$881 million in 25Q4 and outflows of US$3.8 billion in 25Q3, representing another major positive inflection in regional flow dynamics. The acceleration was likely driven by continued investor enthusiasm surrounding artificial intelligence, semiconductor demand, and Taiwan’s strategic importance within global advanced technology supply chains. Taiwan’s recovery from negative flows in mid-2025 to exceptionally strong inflows in early 2026 underscores the extent to which global technology optimism has become a dominant driver of Asian capital allocation decisions.
Hong Kong also experienced a significant reversal, with estimated net inflows surging to US$246.5 billion in 26Q1 after two consecutive quarters of outflows, including net outflows of US$3.5 billion in 25Q4 and US$6.3 billion in 25Q3. The turnaround likely reflects renewed cross-border allocation activity linked to improving China sentiment, recovery in regional capital market issuance activity, and stronger institutional participation through Hong Kong’s role as a gateway for China-related investments. The sharp rebound suggests that investor appetite toward Hong Kong-domiciled strategies improved materially alongside broader stabilization in China-related flows.
Singapore similarly demonstrated strong improvement, with estimated net inflows rising to US$125.3 billion in 26Q1 compared with net inflows of US$972 million in 25Q4 and US$1.9 billion in 25Q3. The significant acceleration reinforces Singapore’s role as a regional wealth management and institutional capital hub, particularly during periods of elevated geopolitical uncertainty and regional portfolio rebalancing. Investors appear increasingly attracted to Singapore’s financial stability, regulatory transparency, and strategic positioning as a diversification center for pan-Asian capital allocation.
Korea recorded estimated net inflows of US$424.7 billion in 26Q1 following persistent net outflows throughout most of 2025, including US$14.8 billion of net outflows in 25Q4. The sharp rebound likely reflects recovery in global semiconductor sentiment and tactical repositioning into Korean technology exporters after prolonged weakness. However, Korea’s prior sequence of sustained net outflows highlights investor sensitivity toward cyclical export sectors and global trade conditions, making the market more vulnerable to fluctuations in external demand expectations.
Southeast Asian markets generally remained smaller in scale but displayed improving momentum. Thailand recorded estimated net inflows of US$147.9 billion in 26Q1 compared with net inflows of US$1.5 billion in 25Q4, while Malaysia rose to US$95.4 billion from US$318 million in the prior quarter. Indonesia also strengthened materially to net inflows of US$36.0 billion from US$600 million previously, reflecting improving investor confidence toward domestic growth conditions and commodity-linked opportunities. The Philippines rebounded from historically weak net inflows to US$19.4 billion, while Vietnam remained comparatively subdued at US$3.1 billion.
Figure3:The Accumulative Net Flows by Domicile ($Million)
Source:LSEG Lipper, as of 2026/03/31
Estimated Net Flows of Funds in Asian Markets by Assets
Based on LSEG Lipper’s ENF (Estimated Net Flows) data across Asian markets by asset type in 26Q1 reflected a highly volatile and rapidly shifting allocation environment characterized by sharp rotations between risk assets and defensive instruments as investors responded to evolving macroeconomic conditions, interest rate expectations, and regional market sentiment. The most significant development during the quarter was the dramatic reversal in Equity funds, which swung from exceptionally strong net inflows of US$61.0 billion in 25Q4 to substantial net outflows of US$60.7 billion in 26Q1, representing the largest quarter-on-quarter deterioration across all asset classes. The scale of the reversal suggests a major shift in investor sentiment following the strong equity rally observed in late 2025, with investors likely engaging in aggressive profit-taking, reducing risk exposure, and reassessing valuations amid heightened volatility and uncertainty surrounding global growth and monetary policy conditions. The sharp deterioration also contrasts strongly with the positive trend seen throughout most of 2025, when equities generally remained the preferred growth-oriented allocation despite intermittent periods of market weakness.
Bond funds also weakened materially, reversing from net inflows of US$15.0 billion in 25Q4 to net outflows of US$28.3 billion in 26Q1. The deterioration highlights continued investor uncertainty surrounding the global interest rate outlook and fixed income return potential. Bond flows trend have remained particularly volatile throughout the observed period, shifting from large net outflows of US$21.1 billion in 25Q1 to massive net inflows of US$79.0 billion in 25Q2 before returning to substantial net outflows in 25Q3 and 26Q1. This pattern reflects unstable market expectations regarding inflation, monetary easing cycles, and duration risk. Investors appear increasingly cautious toward fixed income markets despite elevated yields, with concerns over policy uncertainty and fluctuating rate expectations continuing to drive tactical repositioning across bond allocations.
In contrast, Money Market funds recorded net inflows of US$31.1 billion in 26Q1 following net inflows of US$29.4 billion in 25Q4 and US$19.6 billion in 25Q3. The persistence of elevated money market net inflows suggests investors continue to maintain substantial liquidity buffers amid uncertain market conditions and elevated macroeconomic risk. The sustained strength in cash allocations indicates that despite selective participation in higher-risk assets during previous quarters, institutional and retail investors alike remain reluctant to fully redeploy liquidity into long-duration or highly volatile strategies. The sharp recovery from the large net outflows of US$43.7 billion in 25Q1 to consistently strong net inflows thereafter underscores the broader transition from aggressive risk-taking toward a more cautious and liquidity-focused allocation framework.
Commodity funds continued to demonstrate exceptional resilience, with net inflows reaching US$13.3 billion in 26Q1 following the record US$16.1 billion net inflows in 25Q4. Commodities have now remained consistently positive throughout the entire period, highlighting growing investor demand for inflation protection, geopolitical hedging, and exposure to structural supply-demand themes linked to energy transition and resource security. The sustained strength in commodity allocations reflects increasing recognition of commodities as both cyclical opportunities and strategic diversification assets within multi-asset portfolios. The sharp acceleration from net inflows of only US$1.2 billion in 25Q1 to consistently elevated net inflows in subsequent quarters represents one of the most significant multi-quarter growth trends across all asset classes.
Alternatives experienced a particularly strong rebound in 26Q1, with net inflows surging to US$4.1 billion after consecutive quarters of net outflows, including net outflows of US$963 million in 25Q4 and US$1.2 billion in 25Q3. The improvement suggests renewed investor appetite for diversification strategies outside traditional public markets as volatility across equities and bonds increased. The rebound also reflects growing institutional interest in private markets, infrastructure, hedge funds, and alternative income strategies capable of providing lower correlation and potentially more stable return profiles in uncertain macroeconomic environments. Compared with the modest net inflows of only US$205 million in 25Q2, the sharp increase in 26Q1 indicates strengthening conviction toward alternative investments as a core portfolio allocation rather than merely a supplementary strategy.
Mixed Asset funds also improved significantly, reversing from persistent net outflows throughout most of 2025 to modest net inflows of US$1.7 billion in 26Q1. The category had previously experienced severe redemptions, including net outflows of US$30.6 billion in 25Q3 and US$15.7 billion in 25Q4, reflecting investor dissatisfaction with balanced strategies during periods of elevated cross-asset volatility. The return to positive territory in 26Q1 may indicate renewed demand for diversified allocation solutions as investors seek more balanced exposure amid heightened uncertainty and unstable correlations between equities and bonds.
Real Estate showed a notable improvement, rising from near-flat net outflows of US$20 million in 25Q4 to net inflows of US$581 million in 26Q1. The rebound suggests some stabilization in investor sentiment toward property-related assets after prolonged weakness caused by higher financing costs, structural changes in commercial property demand, and valuation pressures across global real estate markets.
Figure4:The Accumulative Net Flows by Asset ($Million)
Source:LSEG Lipper, as of 2026/03/31
Top/Bottom Net Flow by LGC
The latest 26Q1 fund flow trends by Lipper global classification (LGC) highlight a highly selective and defensive allocation environment, with investors simultaneously pursuing structural growth opportunities while maintaining elevated liquidity buffers and reducing exposure to areas facing macroeconomic and policy uncertainty. The strongest net inflows were concentrated in Money Market CNY, which attracted US$56.8 billion, reflecting significant investor preference for liquidity preservation and low-risk positioning within China amid continued uncertainty surrounding the pace and sustainability of the country’s economic recovery. Rather than fully exiting Chinese assets, investors appear to be parking capital in short-duration instruments while awaiting greater clarity on domestic demand conditions, property market stabilization, and policy effectiveness.
Equity Sector Information Technology recorded the second-largest inflows at US$15.0 billion, underscoring continued confidence in long-term secular growth themes linked to artificial intelligence, semiconductors, digital infrastructure, and earnings resilience among global technology leaders. Despite elevated valuations across parts of the sector, investors continue to favor technology as a structural outperformer capable of delivering superior growth and profitability relative to broader cyclical markets. Equity Sector Materials also attracted strong net inflows of US$13.0 billion, suggesting investors are positioning for a gradual recovery in industrial activity, infrastructure spending, and commodity demand, while also seeking exposure to energy transition themes such as industrial metals and resource-linked supply chains. Commodity Precious Metals registered net inflows of US$12.6 billion, highlighting persistent demand for portfolio hedges amid geopolitical uncertainty, inflation concerns, and expectations of eventual monetary easing by major central banks. The simultaneous strength in both growth-oriented technology allocations and defensive precious metal positioning reflects a balanced but cautious investor mindset that combines participation in upside opportunities with ongoing protection against macroeconomic volatility. Equity Taiwan also attracted US$9.9 billion net inflows, supported by strong investor conviction in the global semiconductor cycle and Taiwan’s critical role in advanced technology manufacturing and AI-related supply chains, further reinforcing the broader preference for Asia technology exposure outside mainland China.
On the net outflow side, Equity China experienced by far the largest net outflows at US$116.7 billion, highlighting continued investor skepticism toward the Chinese equity market despite depressed valuations and ongoing policy support measures. Persistent concerns over weak consumer confidence, structural property market pressures, regulatory uncertainty, and geopolitical tensions continue to weigh heavily on investor sentiment, driving sustained de-risking from mainland Chinese equities. Equity China Small & Mid Cap saw additional net outflows of US$23.2 billion, indicating particularly weak confidence toward domestically exposed and private-sector-oriented segments of the Chinese market, where earnings visibility and financing conditions remain challenged. Money Market INR recorded net outflows of US$23.6 billion, which likely reflects a rotation away from defensive cash holdings toward higher-risk domestic assets such as Indian equities, supported by stronger macroeconomic momentum and improving investor confidence in India’s growth outlook. Bond CNY experienced net outflows of US$8.4 billion, suggesting investors are reducing duration exposure within China amid concerns over limited yield attractiveness, currency pressure, and diminishing return potential in a low-rate environment. Bond INR also posted net outflows of US$7.0 billion, potentially reflecting tactical repositioning ahead of evolving interest rate expectations and a broader shift toward equity markets.
Figure5: Top/Bottom Net Flow by LGC($Million)
Source:LSEG Lipper, as of 2026/03/31
