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APAC Fixed Income Assets Management Industry Market Size (2024 - 2029)

The APAC fixed income assets management sector has experienced significant shifts in its market size due to the COVID-19 pandemic and subsequent economic conditions. The volatility prompted asset managers to increase their focus on fixed income investments, particularly in emerging markets where reliance on bond financing has surged. Despite concerns over emerging market bonds amid tightening monetary policies in advanced economies, domestic institutional investors like pension funds and insurance companies are being encouraged to stabilize the market by absorbing bonds during foreign sell-offs. This strategic move aims to reduce market volatility and maintain a robust market size in the face of global economic fluctuations.

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Market Size of APAC Fixed Income Assets Management Industry

APAC Fixed Income Assets Management Industry Overview
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 6.00 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order
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APAC Fixed Income Assets Management Market Analysis

The COVID-19 pandemic made 2020 a year of high market volatility, and APAC asset managers responded by allocating their investments to the fixed income space.

Emerging markets have grown rapidly over the past two decades, and sovereign and corporate borrowers are increasingly reliant on bond financing. There is also widespread concern over the state of emerging market bonds as central banks in major advanced economies start to unwind quantitative easing policies and raise interest rates.

Mutual funds, which are subject to outflow pressures, liquidated their bond holdings in the relatively risky emerging Asian bond markets, while insurance companies, annuities, and pension funds, which are not subject to outflow pressures, bought extra bonds in these markets. Mutual funds tended to invest more in relatively safe assets (developed Asia-Pacific local currency government bonds) and less in relatively risky assets (developed Asia-Pacific corporate bonds).

Such risk-averse global investors create huge outflows and market turmoil during recessionary periods. In order to mitigate the impact of such behavior of global asset managers on bond markets, policymakers in APAC are fostering a truly domestic and stable institutional investor base such as domestic pension funds and insurance companies, which could act as natural buyers of bonds when foreign investors sell and dampen market volatility during stresses in market conditions.

APAC Fixed Income Assets Management Industry Segmentation

The scope of the report includes an understanding of the APAC fixed income assets management industry, regulatory environment, asset managers, and their business models, along with detailed market segmentation, product types, current market trends, changes in market dynamics, and growth opportunities. An in-depth analysis of the market size and forecasts for the various segments have also been provided.

By Source of Funds
Pension Funds and Insurance Companies
Retail Investors
Institutional Investors
Government/Sovereign Wealth Fund
Other Sources of Funds
Type of Asset Management Firms
Large Financial Institutions/Bulge Bracket Banks
Mutual Funds ETFs
Private Equity and Venture Capital
Fixed Income Funds
Managed Pension Funds
Other Asset Management Firms
By Country
China
India
Japan
Singapore
Hong Kong
South Korea
Malaysia
Rest of APAC
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APAC Fixed Income Assets Management Industry Size Summary

The APAC fixed income asset management market has experienced significant shifts, particularly in response to the COVID-19 pandemic, which heightened market volatility. Asset managers in the region have increasingly turned to fixed income investments as a stabilizing strategy. Emerging markets have seen rapid growth, with sovereign and corporate borrowers becoming more dependent on bond financing. However, concerns have arisen as central banks in advanced economies begin to unwind quantitative easing policies and raise interest rates, impacting emerging market bonds. While mutual funds have shifted towards safer assets, such as developed Asia-Pacific local currency government bonds, insurance companies, annuities, and pension funds have capitalized on opportunities in emerging Asian bond markets. This dynamic has prompted policymakers in APAC to cultivate a robust domestic institutional investor base to mitigate market volatility during global investor sell-offs.

The corporate bond market in emerging economies, particularly Malaysia, has expanded significantly, with corporate sukuk experiencing notable growth. Despite this expansion, liquidity remains a challenge for both conventional and Islamic corporate bonds, potentially hindering access to local currency debt financing. In Australia, the government and corporate bond markets are well-established, supported by a large financial futures and options exchange. China's economic growth has also had a substantial impact on the region's bond markets. The report highlights key players in the APAC fixed income asset management sector, including Nomura Asset Management and Australian Super Pty Ltd, detailing their product offerings and regulatory environments. Notable developments include Nomura's plans to launch an ETF tracking the Solactive Japan ESG Core Index and its significant green bond offering for NTT Finance Corporation, underscoring the region's commitment to sustainable finance.

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APAC Fixed Income Assets Management Industry Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Insights into ESG Investing and Green Bonds

    3. 1.3 Technology Role in Client Relationship Management and in Way of Doing Business

    4. 1.4 Industry Policies and Government Regulations

    5. 1.5 Market Drivers

    6. 1.6 Market Restraints

    7. 1.7 Value Chain/Supply Chain Analysis

    8. 1.8 Porter's Five Forces Analysis

      1. 1.8.1 Threat of New Entrants

      2. 1.8.2 Bargaining Power of Buyers/Consumers

      3. 1.8.3 Bargaining Power of Suppliers

      4. 1.8.4 Threat of Substitute Products

      5. 1.8.5 Intensity of Competitive Rivalry

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Source of Funds

      1. 2.1.1 Pension Funds and Insurance Companies

      2. 2.1.2 Retail Investors

      3. 2.1.3 Institutional Investors

      4. 2.1.4 Government/Sovereign Wealth Fund

      5. 2.1.5 Other Sources of Funds

    2. 2.2 Type of Asset Management Firms

      1. 2.2.1 Large Financial Institutions/Bulge Bracket Banks

      2. 2.2.2 Mutual Funds ETFs

      3. 2.2.3 Private Equity and Venture Capital

      4. 2.2.4 Fixed Income Funds

      5. 2.2.5 Managed Pension Funds

      6. 2.2.6 Other Asset Management Firms

    3. 2.3 By Country

      1. 2.3.1 China

      2. 2.3.2 India

      3. 2.3.3 Japan

      4. 2.3.4 Singapore

      5. 2.3.5 Hong Kong

      6. 2.3.6 South Korea

      7. 2.3.7 Malaysia

      8. 2.3.8 Rest of APAC

APAC Fixed Income Assets Management Industry Market Size FAQs

The APAC Fixed Income Assets Management Market is projected to register a CAGR of 6% during the forecast period (2024-2029)

Nomura Asset Management Co., Ltd., AEGON-Industrial Fund Management Co., Ltd., fullgoal fund management Co. Ltd, SBI Ltd and Australian Super Pty ltd are the major companies operating in the APAC Fixed Income Assets Management Market.

APAC Fixed Income Market Report Snapshots

APAC Fixed Income Assets Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)