Top 10 Singapore-domiciled funds by net flows (1H 2019, in $)
|Fund Name||Fund Sector|
|Schroder Asian Income Fund||Mixed Assets Income|
|First State Bridge||Fund of Funds Balanced|
|Fullerton SGD Heritage Income||Fund of Funds Bonds Asia Pacific|
|First State Dividend Advantage||Equities Pacific Income|
|LionGlobal Short Duration Bond||Bonds Global Short-Term|
|Eastspring IUT-Singapore Select Bond||Bonds SGD|
|Fullerton Short Term Interest Rate||Bonds SGD|
|Schroder Asian Investment Grade Credit||Bonds Asia Mixed Currencies|
|Schroder Global Quality Bond||Bonds Global Currencies|
|Phillip SING Income ETF||Equities Singapore|
Source: Broadridge Financial
“Investors have been piling into income-oriented funds for the past few years,” said Yoon Ng, director of Apac insights for global market intelligence at Broadridge.
“There is strong demand for funds which can provide downside protection, access to upside potential and a regular income stream,” she said.
Other fund management firms have taken advantage of the trend toward income products. Aviva Investors, for example, applied last month with the Monetary Authority of Singapore to launch the Sustainable Income and Growth Fund, which aims to earn income, targeted 5% annually, while BNP Paribas Asset Management launched earlier this year the Parvest Multi-Asset Income Europe Fund.
Income continues to be important for investors in Asia and not just in Singapore. According to findings from a previous Cerulli Associates report, regular steady income payments are the most important feature for investors in the region.
Most important features for retail investors in Asia
Bond funds dominate in Hong Kong
In Hong Kong, six of the top 10 best-selling products domiciled in the SAR are fixed income funds, five of which are focused on Asia.
Top 10 Hong Kong-domiciled funds by net flows (1H 2019, in $)
|Fund Name||Fund Sector||Net flows|
|JPMorgan Asian Total Return Bond||Bonds Asia Hard Currencies||848.5|
|HSBC Asian Bond Fund||Bonds Asia Mixed Currencies||502.6|
|BEA Asia Bond and Currency Fund||Bonds Asia Hard Currencies||440.6|
|JPMorgan Provident Capital Fund||Fund of Funds Conservative||218.7|
|JPMorgan SAR Greater China||Equities Greater China||216.5|
|Fidelity Global Invt-Mkt Invt-Global Bond Fund||Bonds Global Currencies||205.7|
|HSBC Asia High Income Bond Fund||Bonds Asian High Yield||201.6|
|HSBC Asian High Yield Bond||Bonds Asian High Yield||178.9|
|CSOP Hang Seng Index Daily (-2x) Inverse Product ETF||Equities Alternative Inverse/Leverage||177|
|UBS (HK) Fund Series-Systematic Allocation Portfolio Medium Classic||Asset Allocation||167.7|
“Investors in Hong Kong are pivoting towards Asian-focused fixed income funds, as they tend to offer higher yields due to exposure to Chinese bonds,” Ng said.
In general, fixed income products have become popular among Hong Kong investors this year and have accounted for 66.1% of total gross fund sales in the SAR as of the end of April, which compares to just 22.5% during the second quarter last year, according to data from the Hong Kong Investment Funds Association.
CSOP’s Hang Seng Index Daily (-2x) Inverse Product ETF has also made it on the top 10 list, after a May debut. The product is Hong Kong’s first (-2x) inverse product, following the relaxation of the rules on inverse products in March.