Singapore equity funds took in a record SGD 2.2bn ($1.72bn) in Q3 2026, more than double the previous quarter and almost five times the SGD 450m recorded a year earlier, according to Morningstar research.

Flows into Singapore equities have grown steadily since the announcement of the Equity Market Development Programme (EQDP) in early 2025, noted Arvind Subramanian, senior analyst, manager research at Morningstar.

The category has recorded positive flows in every quarter since Q4 2024, and the pace has picked up sharply in the current year.

LionGlobal Singapore Trust led the way in Q3 with around SGD 1.05bn of inflows. Amova Singapore Dividend Equity fund drew about SGD 530m, while Amova Singapore STI ETF added another SGD 280m.

Subramanian commented: “Singapore investors have traditionally looked abroad for their equity and fixed-income exposure, while the local market tended to attract attention mainly during risk-on periods. But this is starting to shift.

“The EQDP measures and strong market performance have put Singapore equities back in the spotlight, with Singapore-focused equity funds becoming increasingly popular among investors.”

Allocation funds also emerged as a winner. The segment attracted SGD 2.45bn in Q3, its strongest quarter in the past few years, following SGD 1.83bn in Q2 and SGD 1.49bn in Q1.

Several strategies drove the strong quarter. PIMCO GIS Balanced Income and Growth fund topped the charts with around SGD 870m of inflows. Allianz Income and Growth attracted roughly SGD 530m, while Schroder ISF Multi-Asset Growth & Income and Schroder Asia More+ also saw notable inflows.

However, fixed-income funds saw outflows as rising bond yields hurt returns in Q3 this year.  

Fixed-income funds saw SGD 1.04bn of net outflows, their third straight quarter of outflows. This marks a sharp turnaround from a year ago, when the segment attracted SGD 3.36bn in Q3 2025.

IMCO GIS Income fund highlights this reversal well, noted Subramanian. Usually among the category’s top asset gatherers, the popular fund saw a second straight quarter of outflows, losing roughly SGD 790m in Q3 2026.

“Still, higher yields now offer an attractive entry point. Yields across most fixed-income categories are at multi-year highs, giving investors a far bigger cushion than before the 2022 selloff,” said Subramanian.

“Active managers with wider mandates across duration and credit have historically had an edge in these environments, and choosing a well-rated fund can help investors ride out this period,” he noted.