Manulife Investments, one of the nine managers allocated by the government to boost the local stock market, has announced the launch of the Manulife Singapore Opportunities Income Strategy.
This fund, a Singapore-focused equity income and growth strategy, is introduced under the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP).
This is designed to capture the opportunities emerging as these enhancements strengthen the overall ecosystem, particularly in areas of the market that remain under-researched.
Manulife says it will invest exclusively in Singapore-listed equities and equity-related securities of varying sizes but will place particular emphasis on small- and mid-cap companies, where lower coverage and persistent valuation inefficiencies create a compelling opportunity set.
“Being selected for MAS’s EQDP is a meaningful endorsement of our deep understanding of Singapore’s equity market and our on-the-ground investment capabilities," says Hui-Jian Koh, CEO, Singapore, Manulife Investments.
Koh says the firm's Singapore-based investment team has the combination of local expertise and regional depth and is equiped to identify opportunities in Singapore that are often under-researched.
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"The Singapore Opportunities Income Strategy builds on this foundation, offering investors a differentiated income-and-growth proposition while contributing to the continued development of Singapore’s equity ecosystem," says Koh.
According to Manulife, the fund will be managed to deliver a balanced income and growth outcome through active stock selection, aiming for both dividend income and capital appreciation.
The fund will typically hold 30 to 50 high-conviction positions. It will use the FTSE ST All-Share Index as a benchmark.
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Stocks will be picked via a bottom-up approach which assesses companies across growth prospects, cash-flow generation, management quality and valuation, with a strong emphasis on identifying clear catalysts for potential re-rating.
"We continue to see valuation gaps in small- and mid-cap companies, where research coverage is limited and catalysts for change are increasingly evident," says Hock Fai Chan, head of equities, Singapore at Manulife Investment Management.
"This strategy is designed to capture these opportunities while contributing to the broader development of the market," he adds.
