HK, Singapore funds pull in US$49.5b in second quarter

Saturday, August 01, 2020

Funds available for sale in Hong Kong or Singapore recorded net inflows of US$49.5 billion during the second quarter, as investors regained confidence after sharp outflows in the first quarter, Morningstar Direct data show.

“After suffering from heavy redemptions in March, bond funds are back in favor and corporate bond funds saw the largest net inflows after the Federal Reserve’s announcement to purchase corporate bonds in March. Equity funds also saw inflows as risk appetite improves, with technology funds leading the charge,” said Wing Chan, Morningstar’s Director of Manager Research Practice, EMEA & Asia.

Fixed-income funds continued to attract the largest inflows, gathering US$33.8 billion in the second quarter. Global corporate bond funds (USD hedged) topped the fund category ranks with US$8.6 billion of net inflows in the second quarter.

Equity funds took in net US$11.8 billion in the last quarter, more than offset net outflows of US$10.3 billion in the first quarter. Amongst the equity fund categories, sector equity technology funds saw the highest demand, pulling in US$5.2 billion in the second quarter.