Survey: Singapore investors shift from multi-asset

Added 16th July 2015

Singapore retail investors have made a significant allocation shift over the last six months away from multi-asset and balanced funds into equity funds, bond funds and hedge funds.

Survey: Singapore investors shift from multi-asset

According to a survey by J.P. Morgan Asset Management, the retail investors' allocation to equity funds jumped to 17% in June from 9% reported in the firm's December survey. The move into fixed income funds doubled to 18% from 9% previously.

Multi-asset and balanced funds allocation fell to 35% from 59% previously.

In equity funds, investors preferred US equity, Asian regional equity and Singapore equity. Among bond fund investors, convertible bonds and Asian bonds were favoured.

Nonethless, Singapore retail investors are confident about the local stock market and economy, sentiment that is reflected by the J.P. Morgan Investor Confidence Index, which rose three points to 116 in June.

More than half of the surveyed respondents (53%) expect Singapore’s stock market to rise in the next six months and 42% expect an improvement in the local economy.

“The recovery of global markets, the Singapore government’s monetary policies, and strong regional growth were the top reasons for investors turning upbeat,” said the firm. 

Yet half of respondents  (52%) said they would maintain or decrease their current investment amount.

“The latest survey shows that retail investors are adopting a wait-and-see attitude despite turning more confident about the stock market and economy,” said Brian Tan, head of fund sales in Singapore.

Uncertainty surrounding Greece and a likely rise in US interest rates later this year could be factors, said the firm. The survey was conducted from 21 May - 8 June, when Greece was in final round negotiations with creditors.

“We believe investors will do well to stay diversified, stay flexible and stay invested given a backdrop of ample monetary liquidity and low interest rates that does not incentivise Singaporeans to keep excess cash in deposits."

The survey sampled 501 retail investors aged 25-60 with an annual personal income of at least S$60,000 ($43,890) and five years of active investment experience.

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