Singapore investor sentiment climbed to its highest level in Q2 2014 since Q1 2013, on the back of a more positive view of the property, fixed income as well as mutual fund sectors, according to the Manulife Investor Sentiment Index as reported in the media.
Notably, investor sentiment rose by four points in Q2 to 15.
Manulife cited improved sentiment towards property as the main reason, with sentiment towards primary residence increasing by 10 points to 23 while investment property rose by 13 points to five.
It noted the proportion of respondents who think it is a good time to invest in their own home rose to 40 percent in Q2 from 31 percent during the first quarter.
“Low interest rates, market stability and, importantly, the view that property prices have corrected to an attractive entry level for investment were key,” it said.
Of the other asset classes in the index, fixed income (up four to 16) and mutual funds (up two to 13) also rose to their highest level since the start of the survey in Q1 2013. However, sentiment towards equities declined by three points to 16.
Singapore investors attributed their increased optimism towards fixed income to market stability and higher returns.
Meanwhile, low interest rates and the improving employment situation were cited as the main reason for their increased interest towards mutual funds.
“Clearly Singapore investors have recently regained quite a bit of confidence but it’s important not to lose sight of the fundamentals and still take a measured approach. It’s crucial to actively manage a diversified portfolio to guard against risk and maximize returns,” said Naveed Irshad, President and CEO of Manulife Singapore.