In a recent survey of affluent investors by Natixis Investment Managers, nearly all in Asia failed a basic quiz about the impact of rising interest rates on bond markets.

When quizzed about what happens to bonds in an environment of rising interest rates, only 3 percent of investors in Asia could provide the correct answers, according to a survey by Natixis Investment Managers. 

29 percent selected one correct answer and 22 percent stated that they did not know.

Survey respondents were questioned about the impact of rising rates on the current value and future income potential of bonds.

Return Expectations

In terms of return expectation, Asian investors are looking to generate gains of 7.1 percent above inflation in 2023 and 14 percent above inflation in the longer term.

Natixis Investment Manager’s annual global survey includes responses from 8,550 individual investors with more than $100,000 in investable assets, including 3,300 respondents in Asia.