SINGAPORE: The Monetary Authority of Singapore (MAS) has appointed three asset managers under the Equity Market Development Programme, it announced on Monday (Jul 21).
The asset managers will initially manage S$1.1 billion (US$856 million) out of the S$5 billion fund, and MAS is still reviewing submissions from more than 100 global, regional and local firms.
Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management are the first three managers to be appointed, MAS said in an update to its earlier announcement in February.
At that time, the MAS announced the S$5 billion programme that involves putting money with fund managers focused on investing in Singapore stocks.
These managers are expected to actively manage investments in a range of companies and draw in investments from other investors.
The programme was proposed by a review group established in August 2024 to strengthen Singapore's stock market and aims to complete its work by the end of 2025.
MAS said it has received strong interest in the Equity Market Development Programme, and is reviewing applications in batches to speed up the appointment and capital deployment process.
The factors taken into consideration were the alignment of their proposed fund strategies with the programme's objectives, the strength of their proposals to "crowd in" third-party capital and their commitment to expand or contribute to the growth of the asset management and research capabilities in Singapore.
"In particular, the fund strategies should have a clear focus on improving liquidity and broadening participation in Singapore equities, with significant allocation to small and mid-cap stocks," MAS said in a press release.
The next phase of selection is expected to be announced by the fourth quarter of this year.
"By investing with a broad range of fund managers employing varied strategies, the (programme) can leverage their distinct investment expertise and distribution networks to attract commercial capital and strengthen market vibrancy," the central bank added.
In recent years, Singapore's stock market has struggled with poor valuations, limited liquidity and a lack of new listings.
Prime Minister Lawrence Wong said in his Budget 2025 speech that he would introduce tax incentives for Singapore-based companies and fund managers that choose to list here.
Mr Wong also said there would be tax incentives for fund managers who invest substantially in Singapore-listed equities, in order to encourage more investment in local capital markets.
MAS also said on Monday that it would set aside S$50 million from the Financial Sector Development Fund to enhance the Grant for Equity Market Singapore (GEMS) scheme.
This is part of the review group's earlier recommendation to shift toward a more disclosure-based regime.
"In tandem with this shift, it is important to enhance the quality of equity research as a complementary measure," MAS said, adding that it will facilitate price discovery and fair valuation of companies, enabling investors to make informed decisions.
The industry has also given feedback that research coverage in the small- and mid-cap segment could be improved.
Besides contributing S$50 million in funding, the GEMS scheme will also be extended by two years to the end of 2028.
Each research report can receive an additional S$1,000, while those that initiate research coverage or cover pre-initial public offering stage and newly listed companies can receive a further S$1,000.
This brings the maximum funding per report from S$4,000 to S$6,000.
There will also be new grant funding to defray costs of research dissemination through digital media and to support research on private companies with strong local presence.
The listing grant under GEMS will also be expanded to cover Singapore Depository Receipts and Foreign Depository Receipts with underlying Singapore stocks, as well as for the listing of primary listed exchange-traded funds.
For investors, MAS will be strengthening protection by enhancing recourse avenues.
Based on feedback that retail investors face difficulty in commencing civil action, the regulator will consult on proposals covering three areas – enabling pursuit of legal action, facilitating self-organisation and providing access to funding.
MAS will consult on proposals to enhance legal provisions to enable investors to ride on court action or civil penalty to seek compensation, to allow representatives to organise and carry out legal action on behalf of investors and on setting up a grant scheme to defray the cost of taking legal action for cases involving market misconduct.
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The asset managers will initially manage S$1.1 billion (US$856 million) out of the S$5 billion fund, and MAS is still reviewing submissions from more than 100 global, regional and local firms.
Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management are the first three managers to be appointed, MAS said in an update to its earlier announcement in February.
At that time, the MAS announced the S$5 billion programme that involves putting money with fund managers focused on investing in Singapore stocks.
These managers are expected to actively manage investments in a range of companies and draw in investments from other investors.
The programme was proposed by a review group established in August 2024 to strengthen Singapore's stock market and aims to complete its work by the end of 2025.
MAS said it has received strong interest in the Equity Market Development Programme, and is reviewing applications in batches to speed up the appointment and capital deployment process.
The factors taken into consideration were the alignment of their proposed fund strategies with the programme's objectives, the strength of their proposals to "crowd in" third-party capital and their commitment to expand or contribute to the growth of the asset management and research capabilities in Singapore.
"In particular, the fund strategies should have a clear focus on improving liquidity and broadening participation in Singapore equities, with significant allocation to small and mid-cap stocks," MAS said in a press release.
The next phase of selection is expected to be announced by the fourth quarter of this year.
"By investing with a broad range of fund managers employing varied strategies, the (programme) can leverage their distinct investment expertise and distribution networks to attract commercial capital and strengthen market vibrancy," the central bank added.
In recent years, Singapore's stock market has struggled with poor valuations, limited liquidity and a lack of new listings.
Prime Minister Lawrence Wong said in his Budget 2025 speech that he would introduce tax incentives for Singapore-based companies and fund managers that choose to list here.
Mr Wong also said there would be tax incentives for fund managers who invest substantially in Singapore-listed equities, in order to encourage more investment in local capital markets.
Related:
S$50 MILLION FOR EQUITY RESEARCH
MAS also said on Monday that it would set aside S$50 million from the Financial Sector Development Fund to enhance the Grant for Equity Market Singapore (GEMS) scheme.
This is part of the review group's earlier recommendation to shift toward a more disclosure-based regime.
"In tandem with this shift, it is important to enhance the quality of equity research as a complementary measure," MAS said, adding that it will facilitate price discovery and fair valuation of companies, enabling investors to make informed decisions.
The industry has also given feedback that research coverage in the small- and mid-cap segment could be improved.
Besides contributing S$50 million in funding, the GEMS scheme will also be extended by two years to the end of 2028.
Each research report can receive an additional S$1,000, while those that initiate research coverage or cover pre-initial public offering stage and newly listed companies can receive a further S$1,000.
This brings the maximum funding per report from S$4,000 to S$6,000.
There will also be new grant funding to defray costs of research dissemination through digital media and to support research on private companies with strong local presence.
The listing grant under GEMS will also be expanded to cover Singapore Depository Receipts and Foreign Depository Receipts with underlying Singapore stocks, as well as for the listing of primary listed exchange-traded funds.
For investors, MAS will be strengthening protection by enhancing recourse avenues.
Based on feedback that retail investors face difficulty in commencing civil action, the regulator will consult on proposals covering three areas – enabling pursuit of legal action, facilitating self-organisation and providing access to funding.
MAS will consult on proposals to enhance legal provisions to enable investors to ride on court action or civil penalty to seek compensation, to allow representatives to organise and carry out legal action on behalf of investors and on setting up a grant scheme to defray the cost of taking legal action for cases involving market misconduct.
Continue reading...