Singapore fund inflows surge 167% to S$7.6 billion for 2024

Singapore-Registered Funds See Surge in Net Inflows to S$7.6 Billion in 2024

[Singapore] Total net inflows into Singapore-registered funds hit S$7.6 billion for 2024, a surge of 167 per cent from S$2.85 billion in 2023, according to a report by financial-services firm Morningstar on Thursday (Mar 27).

Quarterly Performance

The funds logged S$1.7 billion in net inflows in the fourth quarter, down from a record S$3.1 billion in the quarter before.

Asset Class Performance

In Q4, fixed income and allocation funds drew the most interest from investors, recording net inflows of S$758.8 million – though 60 per cent down from Q3, and S$630.1 million, respectively. Equity funds regained some interest among investors, with net inflows of S$171.8 million.

Expert Insights

Arvind Subramanian, senior analyst of manager research at Morningstar, said: “With global central banks initiating rate cuts and yields remaining attractive, fixed income funds have emerged as the most popular asset class in 2024, drawing strong inflows while equity fund investments remain subdued.”

Outlook

Looking ahead, Morningstar believes that mitigating tariff risks is key to identifying attractive opportunities in Asia’s equity markets. The research house prefers domestic-oriented, service-heavy sub-sectors in China, such as travel, where people still spend but trade down to cheaper options.

Conclusion

In conclusion, the surge in net inflows into Singapore-registered funds in 2024 is a positive sign for the industry. With fixed income funds emerging as the most popular asset class, investors are seeking stable returns in a low-interest-rate environment. However, it is crucial to approach investments with caution, considering the volatility of emerging markets and the impact of tariff risks on global markets.

Frequently Asked Questions

Q: What was the total net inflow into Singapore-registered funds in 2024?
A: S$7.6 billion

Q: How did the fourth quarter perform compared to the previous quarter?
A: The funds logged S$1.7 billion in net inflows in the fourth quarter, down from a record S$3.1 billion in the quarter before.

Q: Which asset classes drew the most interest from investors in Q4?
A: Fixed income and allocation funds drew the most interest, with net inflows of S$758.8 million and S$630.1 million, respectively. Equity funds regained some interest, with net inflows of S$171.8 million.

Q: What is Morningstar’s outlook for the equity market?
A: Morningstar believes that mitigating tariff risks is key to identifying attractive opportunities in Asia’s equity markets, and prefers domestic-oriented, service-heavy sub-sectors in China, such as travel.