Source:
ChatGPT:
In Q2 2025, Singapore-registered funds saw robust growth, with net inflows of S$4.1 billion—an 86% increase from the previous quarter. Money market funds dominated, attracting S$2.8 billion, three times the prior quarter’s inflows, despite Treasury bill yields retreating to record lows. Total fund flows for H1 2025 stood at S$6.3 billion, with nearly 60% directed to money market funds.
Morningstar analyst Arvind Subramanian found the surge “surprising,” noting that investor demand is likely not yield-driven but reflects a lack of attractive alternatives amid global uncertainty. Recent tariffs by US President Donald Trump and geopolitical tensions have pushed investors towards safer, low-risk options. Money market funds typically invest in instruments like corporate bonds, municipal debt, and T-bills.
Within this category, Asia money market funds led with over S$2 billion in inflows, followed by miscellaneous (S$568.8 million) and US money market funds (S$168.3 million). Fixed income funds came next, attracting S$918.7 million, with Asia fixed income the standout at S$810.3 million. Equity funds, however, saw a sharp decline, falling from S$397.1 million in Q1 to just S$80.9 million in Q2, though Singapore equity maintained stable inflows at S$247.2 million.
CPFIS-included funds delivered 3.16% in Q2, supported by solid one-year gains of around 6.1%. Benchmark performance was mixed, with the MSCI World Index up 5.6% while the FTSE WGBI dipped 0.9%.
Analysts advise rebalancing portfolios and watching undervalued dividend-yielding stocks. However, Morningstar cautions that the money market fund momentum may fade if market volatility eases, given their currently low yield potential.
Opinion:
This development makes sense.
Because I think SG has many conservative investors.
If market continues higher, greed will seep in and tempt them, haha.
Sticking to my plan with no major changes.
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