Thai investors return to fixed income

Data

Foreign investment fixed term bond funds remain popular, as local investors rush back into fixed income, according to data from Morningstar Direct.

Investors in Thailand have poured money back into fixed income funds, which saw net inflows of THB 129.32bn ($4.06bn) during the first quarter this year, which compares to outflows of THB 150.7bn in 2018, according to data from Morningstar Direct.

Net inflows/outflows

Asset class

1Q 2019 (THB m)

Allocation / mixed-asset

4,756

Commodities

-898

Equity

-14,432

Fixed income

129,323

Miscellaneous

-102

Money market

-23,476

Total net flows

95,171

Source: Morningstar Direct

Within fixed income, foreign investment bond fixed term products, as categorized by Morningstar, continue to be the most popular with first quarter inflows of THB 166.36bn.

However, global bond funds had outflows of THB 6.22bn during the same period.

Equity funds

Equity funds, which had the highest inflows last year of around THB 216.1bn, had net outflows in Q1.

Foreign equity funds continue to be popular among Thai investors, however. Foreign equity products account for four of the top 10 sub-categories by net inflows.

Top 10 sub-categories by net inflows

Name

1Q 2019 (THB m)

Foreign investment bond fixed term

166,361

Aggressive allocation

21,496

High yield bond fixed term

3,607

Bond fixed term

3,551

Property indirect

2,191

Japan equity

596

Global equity

441

Foreign investment equity fixed term

186

Asean equity

181

Capital protected

1

On the flipside, China equity funds, which were among Thailand’s top foreign investment funds by net inflows in 2018, had net outflows in Q1, Morningstar data shows.

Bottom 10 sub-categories by net outflows

Name

1Q 2019 (THB m)

Short term bond

(36,749)

Money market

(23,476)

Global allocation

(13,686)

Global bond

(6,228)

Equity large-cap

(3,242)

China equity

(2,975)

Property – indirect global

(2,710)

Conservative allocation

(2,699)

Foreign investment miscellaneous

(2,095)

Europe equity

(1,127)

Source: Morningstar Direct

 

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