Authorized and recognized unit trusts post net inflows of $897.58m in Q1

For now, Morningstar sees global slowdown impact has yet to come to fruition.

The various authorized and recognized unit trusts registered for sale in Singapore documented net inflows of $897.58m for the first quarter (Q1) of 2023, financial services firm, Morningstar, said.

It also revealed that fixed-income funds saw the most net subscriptions of $710.87m across all asset classes in Q1, whilst Asia fixed-income funds continued to record the largest redemptions, as the category group ended the quarter with negative net flows of $209.78m.

Allocation funds registered net inflows of $283.45m, most of which were driven by the moderate-allocation category, which collected $310.57m during the quarter.

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Here’s the CPF interest rates for Q1 2023

Looking ahead, the firm expects that the Federal Reserve will have “room to reverse course and begin to ease monetary policy at the end of this year if the US economy weakens and inflation wanes.”

“The full brunt of the global slowdown has yet to come to fruition, and some disappointment could occur in the market. Industrials and some tech names, especially for companies whose orderbooks undershoot expectations, will be the first to feel the pain,” said Morningstar.

For the rest of the year, a mixed outlook for earnings will differentiate the markets, with China likely to outperform on this front as activity surges amidst relaxed borders.