Singapore Fund Flows (up to September 2024)
- Elevated interest rates have continued to attract inflows into Fixed Income and Money Market funds.
- Global Fixed Income inflows were dominated by the popular PIMCO Income Fund.
- Asia Fixed Income also witnessed robust inflows, driven mostly by shorter duration SGD-oriented funds such as Lion-Maribank Saveplus and United SGD fund.
- US Fixed Income also saw reasonable inflows boosted by attractive bond yields
- Despite buoyant markets, equity funds registered outflows in Q3.
- In a relatively subdued quarter for equity funds, US Large-Cap Blend Equity saw modest inflows.
- Meanwhile, with robust growth outlook and strong macro fundamentals, India Equity continued to experience inflows.
- Asia ex-Japan Equity experienced the highest outflows during the quarter, despite delivering relatively strong market returns.
- Major Global Multi-Asset Income Funds Continue to Attract Inflows
- Moderate Allocation remained the leading category in Q3, driven by global multi-asset income funds such as Allianz Income and Growth and Franklin Income.
- Inflows into Flexible Allocation were primarily supported by Manulife Global Multi-Asset Diversified Income.
- Conversely, Asia multi-asset funds, categorized under Allocation Miscellaneous, experienced outflows, led by First Sentier Bridge Fund and Schroder Asian Income.
“Fixed income and money market funds have dominated inflows in Singapore throughout 2024, a trend that persisted into the third quarter, while inflows into equity funds remained subdued. As we approach 2025, with global central banks embarking on a rate-cutting cycle, the appeal of cash and money market funds may diminish, making it an opportune time for investors to consider adding duration to their portfolios.” Arvind Subramanian, Senior Analyst, Manager Research, Morningstar
Performance of CPFIS-Included Funds
- US stocks continued to be the top performers over the past year, fueled by gains in technology and communication services companies.
- Asia ex-Japan equities saw strong growth in Q3 2024, with Chinese stocks surging following the government’s announcement of a major stimulus package in late September.
- Many major economies reduced their interest rates during the quarter, which led to improved returns in fixed income.
- Despite the recent surge in Chinese equity prices, a significant performance divergence persists between Asian and global markets.
- CPFIS funds cover a wide range of global categories, with a higher concentration of Asia-focused funds.
- This influences the average performance of CPFIS funds during periods of significant performance divergence between Asian and global markets, such as in the past three years
The full Performance and Risk Monitoring Report, as well as the Singapore Fund Flow Report are here for your perusal. Previous reports are also available here. You may also find comprehensive information about unit trusts and investment-linked life insurance products available in Singapore at FundSingapore. FundSingapore site is a national funds data platform that aggregates and provides public access to timely data on fund performances, risks and returns of over 9600 funds distributed in Singapore. The portal empowers investors to make informed decisions, and select funds based on a wide range of ratings, from risk preference to sustainability goals
Source: Morning Star