SINGAPORE – Investors are putting more money into Singapore stocks and equity funds, coinciding with higher dividend payouts from companies listed here, according to the latest data showing record fund inflows and stronger underlying dividend growth in the third quarter.
Singapore-focused equity funds attracted a record $2.2 billion in the third quarter of 2026, with inflows more than double the previous quarter’s level and almost five times the $450 million recorded a year earlier, according to findings released on Nov 4 by Morningstar, an investment research and financial services firm.
Separately, investment management firm Capital Group’s latest Dividend Watch report, also released on Nov 4, found that Singapore companies in its study paid a total of US$7.6 billion (S$9.6 billion) in dividends during the quarter, up 2.5% from a year earlier.
Underlying dividend growth for Singapore companies was stronger at 9.6%, ahead of the global average of 7.5%. This measure strips out special dividends, currency movements and changes in payment timing to give a clearer picture of recurring payouts.
Singapore’s dividend growth was overwhelmingly driven by banks, particularly DBS and OCBC, Capital Group said.
At DBS, record fee income, buoyant wealth management activity and growing customer activity helped offset weaker margins, allowing the bank to continue returning surplus capital to shareholders.
Meanwhile, OCBC benefited from record non-interest income and strong wealth management and trading revenues, the report said.
Both reports point to renewed demand for Singapore equities, alongside growth in the cash companies are returning to shareholders.
Morningstar attributed the growing popularity of Singapore equity funds to strong market performance and measures under the Equity Market Development Programme (EQDP) to revitalise the local stock market.
Arvind Subramanian, senior analyst and research manager at Morningstar, noted that 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.
That 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,” he said.
Singapore equities have recorded positive flows in every quarter since the fourth quarter of 2024, when the EQDP was first announced, and the pace has picked up sharply in 2026 so far.
LionGlobal Singapore Trust saw the highest inflows of around $1.05 billion, while Amova Singapore Dividend Equity Fund drew about $530 million. Amova Singapore STI ETF added another $280 million, according to Morningstar.
Funds combining different asset classes also attracted more money, driven by the strong appetite for equities.
Allocation funds, which typically invest across assets such as shares and bonds, drew $2.45 billion in the third quarter, their strongest quarterly inflows in the past few years. This followed $1.83 billion in the second quarter and $1.49 billion in the first.
PIMCO GIS Balanced Income and Growth Fund attracted about $870 million, while Allianz Income and Growth drew roughly $530 million. Schroder ISF Multi-Asset Growth & Income and Schroder Asia More+ also recorded notable inflows.
The stronger appetite for stocks came at the expense of bonds, as investors pulled more money out of funds that invest solely in bonds.
During the quarter, withdrawals accelerated from fixed-income funds, which recorded $1.04 billion in net outflows, data showed.
It is also the third consecutive quarter of outflows from fixed income, and a reversal from the $3.36 billion attracted in the corresponding period of 2025.
The PIMCO GIS Income Fund, usually among the category’s leading fixed income asset gatherers, recorded a second consecutive quarter of withdrawals, with investors pulling out about $790 million.
Rising bond yields have weighed on fixed-income fund returns, as higher interest rates on new bonds make existing bonds with lower payouts less attractive, pushing down their prices.
However, higher yields also offer investors more attractive income opportunities. Morningstar noted that yields across most fixed-income categories were at multi-year highs.
