Singapore’s central bank, the Monetary Authority of Singapore (MAS), is injecting S$1.1 billion ($856.36 million) into the stock market through three asset managers as part of a broader S$5 billion initiative. This move is aimed at revitalizing the local stock market and comes amid an ongoing review of market practices initiated by MAS in August last year.
The three asset managers selected for the Equity Market Development Programme (EQDP) are Avanda Investment Management, JP Morgan Asset Management, and Fullerton Fund Management, the latter of which is owned by Singapore’s sovereign wealth fund Temasek. These fund managers were chosen based on their alignment with the EQDP’s objectives and their potential to contribute to the growth of Singapore’s asset management capabilities.
MAS emphasized that more than 100 global, regional, and local asset managers have expressed interest in receiving funding for co-investment, with more announcements expected later this year. The initiative targets a wide range of market strategies with a focus on Singapore-listed equities, aiming to enhance investor participation and broaden the investment landscape beyond large-cap stocks.
Since the review group’s formation, the Straits Times Index has surged by 23.9% as of July 18, showing the positive impact of these efforts.
Key Points:
– MAS allocates S$1.1 billion to asset managers under the EQDP to boost the stock market.
– The programme focuses on Singapore-listed equities and increasing investor participation.
– Avanda, JP Morgan, and Fullerton Fund Management selected for their strategic alignment.
– The Straits Times Index has risen 23.9% since the announcement of the review group.
