MAS picks Avanda, Fullerton, JP Morgan under $5 bil Equity Market Development Programme

The Monetary Authority of Singapore (MAS) has appointed Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management as the first batch of asset managers that will launch fund strategies under the Equity Market Development Programme (EQDP), announced the central bank and financial regulator on July 21.

MAS will place a combined initial sum of $1.1 billion with the three firms, out of $5 billion that has been set aside for the EQDP.

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, reads MAS’s announcement.

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, announced by the MAS’s equities market review group in February, aims to strengthen the local asset management and research ecosystem and increase investor interest in Singapore’s equities market, particularly small- and mid-caps.

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.

More funding for research reports

MAS has also announced a $50 million commitment to enhance the Grant for Equity Market Singapore (GEMS) scheme, which has been extended from end-2026 to end-2028. The additional sum has been set aside from the Financial Sector Development Fund (FSDF).

The enhanced Research Development Grant will provide additional funding of $1,000 for each research report, with a further $1,000 for initiation reports and research on pre-initial public offering (IPO) firms and newly-listed companies.

The raised amount takes the maximum funding from $4,000 currently to $6,000 per research report, and takes effect from July 21.

According to MAS, the enhanced funding aims to “boost investor awareness” and trading interest within “under-researched” segments, particularly in small- and mid-cap companies.

Launched in 2019, the GEMS Scheme currently funds equity research reports using a two-tiered approach. Eligible applicants must produce a minimum of 20 reports in a year to qualify for the Basic Tier, which provides funding of $3,000 per report for the first 39 reports.

Applicants that produce 40 or more reports per year may progress to the Enhanced Tier, which provides higher funding of $4,000 per report from the 40th to 80th report.

To broaden investor outreach and engagement, especially among younger investors, a portion of the $50 million will be made available to research houses to defray costs of disseminating research via digital media.

MAS will also provide new funding to support research on private companies with a "strong local presence”, in a bid to foster investor familiarity and build a pipeline of potential listings. Applicants may submit proposals to MAS for consideration.

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More listing grants

The listing grant under GEMS will also be expanded to enhance product diversity and trading liquidity in Singapore.

First, a new funding sleeve will cover Singapore Depository Receipts (SDRs) and foreign Depository Receipts (DRs) with underlying Singapore stocks, providing $40,000 per DR issuance.

This aims to increase overall trading interest and liquidity in Singapore, says MAS, while broadening the global investor base for Singapore equities.

Second, MAS is increasing the overall funding per primary listed exchange-traded fund (ETF) from $100,000 to $250,000. The new funding sleeve will also support cross-listed and feeder ETFs at $180,000 per listing.

SGX Group CEO Loh Boon Chye says the Equities Market Review Group has made “important progress in catalysing active institutional capital into Singapore’s equities market”. “A more diverse investor base will enhance market liquidity and discipline, while improved research and distribution will elevate the visibility of more companies.”

Loh adds: “The Review Group’s multi-faceted approach aligns with SGX Group’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.”

In a statement, Singapore Institute of Directors (SID) CEO Terence Quek says he welcomes MAS’s initiatives to strengthen the corporate governance framework. However, Quek urges the authorities to put in place “proper safeguards” to protect against the rise of an “overly-litigious environment”.

“In the United States, for example, more than 200 securities class action filings are filed annually against companies and their directors,” says Quek. “Striking the right balance between protecting investor rights and avoiding a climate of excessive legal action will be key to the success of these reforms.”

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