As the market goes higher — and as they join the action later with their respective allocations — will the third tranche of asset managers be, in a way, disadvantaged?
On July 24, 2025, the Monetary Authority of Singapore (MAS) announced that it was placing a total of $1.1 billion with three asset managers, Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management (JPMAM). The STI closed at 4,273.05 points that day.
On Nov 19, 2025, the MAS said it would place another $2.85 billion with six asset managers, Amova Asset Management (formerly Nikko Asset Management), AR Capital, BlackRock, Eastspring Investments, Lion Global Investors and Manulife Investment Management. The STI closed at 4,505.22 points that day.
As at Jan 14, the STI closed at a new high of 4,812.51 points, up from the previous close of 4,807.13 points. That’s a gain of 22.5% compared to the 3,929.94 points as at the close of Feb 21, 2025, when the EQDP announcement was made.
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It is worth noting that the managers given the EQDP mandate thus far are either those from the big multinationals or the leading domestic firms. There is a big group of local managers who are eager for their share of the allocations, too. Unlike the bigger managers who can easily span multiple markets, these homegrown firms have their fortunes more closely tied at home.
Assuming they will be in the third batch, these managers might find themselves deploying their allocation in a more mature bull market — putting them in a tougher position to generate gains compared to those with the early mover advantage.
True, the market should have some way to go. Analysts have rolled out rosy predictions that the STI will hit more than 5,000 points this year, with especially cheery ones such as Maybank Securities calling for 5,600 points. Yet, investors ought to be reminded that these are but forecasts.
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There are additional measures in the works to increase the chances that Singapore’s market revival will not be a fleeting occurrence, but something hopefully more sustainable. For example, the Global Listing Board supporting dual listings between the Singapore Exchange (SGX) and Nasdaq is now only in its consultation stage. The SGX has also proposed that board lot sizes be reduced, thereby making it easier for more retail investors to join in and potentially boosting liquidity further.
The combination of EQDP deployment, rising retail and institutional participation and structural reforms is creating fertile ground for growth, similar to the markets in Japan and South Korea following their own reforms. It is something we should all cheer for.
For the third tranche of asset managers, they can still capture value and drive performance, but it will take more skills and perhaps a bigger dose of luck and less of just riding along.
