Smartkarma, in conjunction with its work in relation to the Equity Market Development Programme (EQDP), is launching a family of Smartkarma Indices, which will be its suite of model portfolios and thematic baskets that can help quantify high-conviction, research-driven investment themes.
The introduction of the Smartkarma Singapore Value-Up Indices (SG VUP), is in line with SGX’s growing focus on governance, disciplined capital allocation and shareholder-focused reforms.
The indices are to capture the structural shift among SGX-listed companies toward stronger governance and capital discipline, presumably translating into scalable, measurable and actionable themes.
Unlike traditional passive benchmarks, Smartkarma Indices are designed with high active share and inbuilt risk management, giving investors exposure to structural themes while targeting superior risk-adjusted returns.
"High active share" means a portfolio looks very different from its benchmark, not just a copy of it. Smartkarma embeds active-style risk management such as hard stop-losses that remove constituents that fall beyond set thresholds; dynamic stop-losses exit once signals turn negative, and performance lags as well as monthly rebalancing which keeps portfolios current and disciplined.
Four indices have been introduced thus far: Smartkarma SG ALLCAP VUP 50-stock all-capitalisation portfolio; Smartkarma SG SMIDCAP VUP 50-stock small and mid-cap focused; Smartkarma SG LARGECAP VUP 30-stock large-cap portfolio and Smartkarma SG ALLCAP-LQD VUP 50-stock liquid portfolio. All four are rebalanced monthly.
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The series establishes a common language and measurable indicator for investors and research providers to align on. Its launch builds on the Singapore equity market reform momentum and recent value-unlock initiatives led by the MAS along with its Equity Market Development Programme, while echoing similar efforts in Japan and South Korea.
The recent wave of corporate actions by SGX-listed companies – from Singtel’s capital recycling to Keppel’s portfolio rationalisation to name a few – underscores how decisive value unlocking initiatives can create significant shareholder value.
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“The seeds are sown. Now comes the harvest," says Raghav Kapoor, co-founder and CEO of SmartKarma. "If Singapore can foster its own version of Japan’s disciplined governance reforms and South Korea’s benchmarking approach, the city-state can transform its market into a regional exemplar of value creation.”
Chan Kum Kong, managing director and head of capital market development at SGX Group, calls Smartkarma’s Value-Up Indices a timely addition to the Singapore stock market, showcasing the long-term potential of SGX-listed companies.
"We welcome opportunities to collaborate with partners who share our vision of advancing market transparency, corporate governance and investor engagement," he adds. SGX Group is an investor of Smartkarma.
By codifying insights into active Indices, Smartkarma is turning shareholder-focused reform into measurable, investible progress. “Our Singapore Value-Up series is a tangible step in giving a quantifiable representation to reforms," says Surya Ravikumar, Smartkarma’s head of data strategy.
"Importantly, the family reframes how we define value and aims to rediscover SGX-listed companies whose stories, strategies, and stakeholder alignment are ready to resonate with global investors. We’re proud to champion a new lens for capital discovery,” he adds.
Just on Sept 22, SGX launched the iEdge Singapore Next 50 indices, so as to better track the 50 largest stocks outside of the Straits Times Index.
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When asked about the differentiators between the Next 50 and Smartkarma’s indices, Kapoor says that the first of the Next 50 indices are designed to promote market development and investor engagement.
Smartkarma’s Value-Up (VUP) Series, according to Kapoor, seeks to complement the iEdge Singapore Next 50 by offering a value-up lens to better highlight the long-term potential of SGX-listed companies whose strategies, stories, and stakeholder alignment are poised to resonate with global investors.
