[SINGAPORE] Temasek-backed Fullerton Fund Management will be among the first of three asset managers to tap a S$5 billion investment fund initiative announced by authorities earlier this year. The other two are global fund manager JP Morgan Asset Management and Avanda Investment Management, which is co-founded by former GIC chief investment officer and ex-presidential hopeful Ng Kok Song.
A combined initial sum of S$1.1 billion will be set aside for the three asset managers under the Equity Market Development Programme, which was first announced in February by the equities market review group, whose task is to help revive Singapore’s equity market.
The Monetary Authority of Singapore (MAS), which leads the review group, said on Monday (Jul 21) that the three managers were selected based on a range of factors.
These include the alignment of their proposed fund strategies with the programme’s objectives, the strength of the proposals to attract third-party capital such as foreign funds, as well as their commitment to contribute to the growth of asset management and research capabilities in Singapore.
The fund strategies also have a clear focus on improving liquidity and broadening participation in Singapore equities, with significant allocation to small- and mid-cap stocks, said MAS.
More than 100 global, regional and local asset managers had indicated their interest in the programme, which is open to local and international managers as well as new and existing funds.
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Speaking to the media on Monday, National Development Minister Chee Hong Tat said MAS decided to announce the first three asset managers first as they were “ready”.
“We thought it would be better for us to proceed with these three (asset managers)… rather than to hold back all the proposals and finish assessing all of them before we announce the full list,” said Chee, who is leading the review group. He is also the deputy chairman of MAS.
Fullerton Fund Management said that it will launch a dedicated Singapore equities unit trust in Singapore. The trust will be invested in stocks listed on the Singapore Exchange (SGX), with exposure to stocks across all market capitalisations.
It will also offer daily liquidity and be made available to retail, accredited and institutional investors.
Mark Yuen, chief business development officer of Fullerton Fund Management, said that the Singapore equities unit trust will “bring a solution to the market” in line with the goals of the Equity Market Development Programme.
He noted existing demand for Singapore and Singapore dollar-denominated assets across different investor segments locally and globally, amid ongoing market volatility, weakness in the US dollar, and global interest-rate movements.
JP Morgan Asset Management did not disclose details of its fund mandate. Its Asean equities team head, Pauline Ng, said the asset manager was “honoured” to leverage its investment capabilities and local expertise to further unlock the potential of Singapore’s equities market.
MAS said it is continuing to review the submissions. It will announce the next batch of selected asset managers in the fourth quarter of 2025, with the rest to be announced in 2026.
More funding for research
Separately, MAS will also set aside S$50 million until 2028 for the Grant for Equity Market Singapore (Gems) Scheme to strengthen research on equities and reduce listing costs for issuers.
The Research Development Grant under Gems will see its maximum funding increase from S$4,000 to S$6,000 as at Monday. With the increase, each research report will receive an additional S$1,000 in grants, with a further S$1,000 if the report is an initiation of research coverage or covers pre-initial public offering stage and newly listed companies.
There will also be a new grant funding for research houses to reduce the costs involved in distributing their research through digital media.
In addition, a fund will be set up to support research on private companies with a strong Singapore presence. This is to help investors become more familiar with these companies and build a pipeline of potential new listings.
The increased research funding goes “hand in hand” with the review group’s announcement in February this year to move the Singapore equity market towards a more disclosure-based regime with proper safeguards and investor awareness, said Chee.
The funding will also help to promote participation from retail investors, and help them grow their investments over the longer term, rather than as “short-term punting”, he added.
The listing grant under Gems will be expanded to cover Singapore Depository Receipts and foreign Depository Receipts with underlying Singapore stocks. Under the new funding category, each Depository Receipt issuance will receive S$40,000.
Overall funding per primarily listed exchange-traded fund (ETF) will go up from S$100,000 to S$250,000. A new funding category will also support cross-listed and feeder ETFs at S$180,000 for each listing.
SGX Group’s chief executive Loh Boon Chye said the review group’s approach aligns with the Singapore Exchange’s ongoing push to broaden market participation, expand offerings and attract quality listings.
“Momentum is building in our stock market beyond index names and in our listing pipeline – but this is just the start. With collective efforts across the ecosystem, we can unlock stronger, more sustained capital flows.”
