Schroders Plc and Baring Asset Management Ltd. are avoiding Singapore stocks, the cheapest in Southeast Asia, as slower economic growth in the region and cuts to Federal Reserve stimulus drive capital outflows.
The fund managers expect property to lead declines in Singapore amid a real-estate slump and the prospect of higher interest rates. The Straits Times Index was the worst-performing developed market in 2013, dropping 9.5 percent since Fed Chairman Ben S. Bernanke said in May that bond purchases may be reduced on signs of sustainable U.S. recovery.