Posted inFund Flows

Singapore sees fund outflows in Q2

It reverses inflows from the first three months of the year, according to data from Morningstar.
skyline of singapore at marina bay and gardens

For the first time in two years, authorised and recognised unit trusts registered for sale in Singapore posted a quarterly net outflow.

The loss amounted to S$62.28m ($44.59m) for the second quarter this year, compared with a net inflow of S$1.55bn in the previous quarter.

Net outflows in fixed income funds were the main driver, with net redemptions amounting to S$873.67m.

Against the backdrop of high inflation and monetary tightening, all bond categories recorded fund outflows in the second quarter.

Asia-focused fixed income funds faced the largest redemptions, with net outflows of S$520.41m, followed by global fixed income (S$202.64m) and US fixed income (S$91.73m).

Only two major asset classes recorded net subscriptions for the quarter – equity and allocation.

Equity funds posted the highest net inflows, at S$563.45m for the quarter, but this marked a significant decrease compared with the first three months on 2022 (S$1.05bn).

Among all equity types, Asia Pacific ex-Japan equity continued to be in greatest demand in the second quarter, totalling S$170.09m, followed by US large-cap blend equity (S$73.12m) and global large-cap blend equity (S$65.39m).

On the other hand, gross inflows into allocation funds were stable quarter-on-quarter.

The asset class reported inflows of S$1.16bn from April to June, while outflows hit S$797.75m.

Yet money market funds, one of the most popular asset classes in the first quarter, posted net outflows during the subsequent three-month period.

Investors’ subscriptions to the cash management product led to an aggregate of S$104.2m in net outflows, while the asset class saw net inflows of S$446.31 in the first quarter.

Fund flows by asset class for Q2 2022 (in S$m)

 InflowsOutflowsNet flows
Fixed income1,359.812,233.47(873.67)
Money market1,909.752,013.96(104.20)
Source: Morningstar Data as of 30 June 2022

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