Japanese retail investors allocated more than 2 trillion yen to major foreign asset funds in January 2026, marginally outpacing the inflows recorded in January 2025, according to research published by Bank of America. The January figure follows a well-established seasonal tendency tied to investor use of annual NISA growth-investment allowances early in the calendar year.
Bank of America noted that January 2025 had nearly 2 trillion yen of inflows, whereas the monthly average for the remainder of 2025 was 890 billion yen - underscoring the outsized nature of January activity relative to the rest of the year.
The composition of inflows showed some rotation within asset categories. Overall equity fund inflows were slightly lower than those in January 2025; however, a substantial increase in allocations to gold funds - amounting to 220 billion yen in January 2026 - helped lift the total amount invested in foreign assets.
Within equity strategies, Bank of America reported a marked rebalancing: U.S.-focused equity fund inflows declined by 540 billion yen, while global equity funds attracted an additional 440 billion yen. The research highlighted that investors appear to be reallocating toward so-called "inflation portfolios."
Bank of America researchers said Japanese retail investors are showing increased concerns about the credibility of the U.S. dollar and fiat currencies generally, and are shifting allocations accordingly.
Bank of America described this pattern as a notable change in retail investor behavior in Japan. Even so, the bank observed that the overall flow dynamics continue to underpin demand for the USD/JPY currency pair - a consequence of global funds holding sizeable positions in U.S. equities despite the internal shift away from U.S.-only equity funds.
The January flows therefore reflect both a seasonal uptick tied to NISA utilization and a tactical portfolio shift among Japanese retail investors toward assets perceived as hedges against inflation, including gold and broader global equity exposure. Bank of America's analysis links these reallocations to growing skepticism among retail investors regarding fiat currency credibility, while also noting that exposure to U.S. equities within global funds sustains dollar demand.
Methodological note - The figures and characterizations in this report are drawn from Bank of America research cited for January 2026 and comparative January 2025 and 2025-average monthly flows. The report describes investor allocation changes and the resulting implications for currency demand without attempting to ascribe causal explanations beyond those noted by the bank.