Singapore’s central bank will place $856M (S$1.1B) with three asset managers under a $5B program to boost its stock market, with additional co-investments under play.
The Monetary Authority of Singapore (MAS) is conducting an inquiry into the local stock market and set up a review group in August last year. This was with an aim to make the market functions sturdier.
The fund managers chosen as a part of Singapore’s Equity Market Development Program (EQDP) are Avanda Investment Management, JP Morgan Asset Management, and Fullerton Fund Management, which is owned by Temasek, Singapore’s sovereign wealth fund.
MAS cited multiple factors, including the “alignment of their proposed fund strategies with EQDP objectives,” along with their plans to contribute to the growth of the country’s asset management ecosystem.
More than 100 global, regional, and local asset managers had shown interest in co-investments under the development program. MAS will review these in batches to speed up the process of appointment and eventually deployment of capital.
In March, MAS and the Financial Sector Development Fund disclosed that, under the EQPD program, it would back strategies managed by Singapore-based managers who have a keen focus on Singapore’s listed equities, alongside allocating investor capital beyond large-cap stocks.
Source: Reuters
