Avanda reveals name, portfolio managers of S’pore-only equity strategy while other two chosen managers avoid details

Two of the three asset managers chosen by the Monetary Authority of Singapore (MAS) to launch fund strategies under the Equity Market Development Programme (EQDP) are staying tight-lipped on both their asset allocations and how they plan to invest their share of $1.1 billion to be placed by MAS, announced on July 21.

Avanda Investment Management, co-founded in 2015 by former GIC CIO and 2023 Presidential Election candidate Ng Kok Song, was the only firm to readily answer queries about their selected strategy.

In response to The Edge Singapore, Avanda says its strategy is fully allocated to Singapore-listed companies with a “strong focus” on the small- and mid-cap segment. “Being highly active and benchmark-agnostic allows us the flexibility to invest outside of the Straits Times Index constituents; this would direct more attention and liquidity to off-benchmark stocks.”

The firm adds in an email: “There are three themes running through the strategy: Value-up, Local Champions and Turnaround. This distinguishes us from most of the existing Singapore-only funds, which are benchmarked to the indices and have a significant overweight to large caps.”

The firm says it will launch its Singapore equities strategy as a new standalone fund called the Avanda Singapore Discovery Fund.

Avanda tells The Edge Singapore that the strategy will be managed by Richard Chan, partner and head of equities; and Sherman Lim, portfolio manager, equities. The duo will be supported by Avanda’s equity team.

Chan joined GIC in 1994 as an investment officer, where he later became managing director and head of Asia Pacific equities.

In an email, Avanda’s team notes that this is the first time the Singapore government is “directly injecting demand” into the equities market in a “significant” way and partnering with private sector managers to crowd in capital in a “concerted” fashion.

“From a bottom-up perspective, we also see many overlooked, undervalued companies. Coupled with decisive supply-side initiatives, we believe the stars are aligned for an equities revitalisation in Singapore,” adds Avanda.

MAS did not provide a breakdown of how the $1.1 billion sum will be divided across the first batch of three chosen asset managers. Avanda, along with Fullerton Fund Management and JP Morgan Asset Management (JPMAM), declined to reveal how much they will each receive.

“We believe the overall size of the program is well-calibrated to achieve market impact,” says Avanda, while also declining to reveal its strategy’s holdings.

Avanda says the Avanda Singapore Discovery Fund will be launched “soon” and more details will be made available “in the coming weeks”.

Fullerton, JPMAM avoid questions

Fullerton and JPMAM side-stepped questions from The Edge Singapore about how their respective fund strategies will invest with “significant” allocation to small- and mid-cap stocks — a selection criteria outlined by MAS.

Fullerton, however, announced on July 21 that it will launch a “dedicated Singapore equities unit trust” here to “crowd in investor assets from various investor segments locally and abroad”.

In response to The Edge Singapore, Fullerton says the unit trust will be invested in stocks listed on the Singapore Exchange (SGX) with exposure “across all market capitalisation”. “It will offer daily liquidity and be made available to everyone including retail, accredited and institutional investors. More details will be provided in due course.”

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The firm adds: “We are looking forward to broadening investor interest in Singapore public equities, including the mid-cap space. However, as we are still in the preliminary stages, we are unable to share any information regarding our strategies at this time.”

The Edge Singapore contacted the three asset managers with questions about their chosen fund strategies, including their chosen benchmarks and allocations to local small-caps, mid-caps, large-caps and foreign equities.

Details “are still being worked out” and discussions are “still in the preliminary stages”, says Fullerton in response to multiple questions.

JPMAM, meanwhile, responded with a statement that its Asean equities team comprises “five senior portfolio managers with an average of 20 years of investment experience”. “The team is well-equipped with extensive expertise in researching and investing in Singapore equities, a commitment that spans over four decades.”

JPMAM provided two quotes from its executives. Ayaz Ebrahim, CEO of Singapore and Southeast Asia at JPMAM, calls it a “privilege” to contribute to the advancement of Singapore’s asset management landscape in collaboration with MAS. “As we celebrate SG60, and having operated in Singapore for over 60 years, we take pride in being part of Singapore’s extraordinary economic journey over the years.”

Pauline Ng, head of Asean equity team, emerging markets & Asia Pacific equities at JPMAM, says: “We are honored to leverage our globally renowned investment capabilities alongside our deep local expertise to further unlock the potential of Singapore’s equities market for investors.”

The appointments, announced on July 21, mark the first time MAS is deploying funds from the $5 billion EQDP, which aims to strengthen the local asset management and research ecosystem and increase investor interest in Singapore’s equities market, particularly small- and mid-caps.

MAS says the three firms’ proposed fund strategies are aligned with the EQDP’s objectives and will crowd in third-party capital alongside MAS’s funding. The three asset managers have also committed to expand or contribute to the growth of the asset management and research capabilities in Singapore, according to MAS.

Over 100 global, regional and local asset managers have indicated interest in the EQDP since it was announced in February. MAS is reviewing the submissions in batches to speed up the appointment and deployment process.

By end-2025, MAS expects to announce a second batch of asset managers that will manage a portion of the remaining funds under the EQDP.

The EQDP was announced by the MAS’s equities market review group in February. The review group, which was set up in August 2024 to explore ways to revitalise the Singapore stock market, aims to complete its work and release its final report by end-2025.

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