Fullerton Fund Management launches first retail fund under MAS’ $5b stock market programme

SINGAPORE – Fullerton Fund Management has launched the first retail fund under a Monetary Authority of Singapore (MAS) programme to boost liquidity and investor interest in Singapore stocks.

The launch comes three months after Fullerton was selected by MAS in July as one of three fund managers to receive $1.1 billion under the regulator’s $5 billion Equity Market Development Programme (EQDP) for investing in Singapore stocks.

The new fund, called Fullerton Singapore Value-Up, will invest exclusively in Singapore-listed securities, covering small-, mid- and large-cap stocks, including initial public offerings (IPOs) and secondary listings, with a portfolio of 20 to 40 companies.

It will be offered as a collective investment scheme to retail, accredited and institutional investors in Singapore and other markets, and aim to outperform the FTSE Straits Times All-Share Total Return Index through active management.

Fullerton did not reveal the full list of stocks in the fund’s portfolio, citing confidentiality and competitive reasons, but said they will cover a diverse range of sectors. The fund will also invest in dividend paying stocks, where both accumulation shares, which reinvest income, and distribution shares, which pay it out as cash, will be available to investors.

It added that the fund will provide monthly updates through its fact sheets, which will include information on top holdings, sector allocations and other portfolio indicators.

In addition to companies in industrials, manufacturing, communications and financials, Fullerton head of investment strategy Robert St Clair said investors will be able to gain access to the real estate and consumer sectors.

He noted that these two sectors have outperformed in 2025 compared with last year, supported by falling interest rates, controlled inflation, strong consumer incomes, gross domestic product growth, and rising loan demand and domestic spending.

“Investors can get exposure to these positive sector themes that they will not find among large-cap stocks, which, while also positive, have very different drivers as they are not as domestic economy-centric with half of their revenues coming from offshore.”

He added: “Another key facet of the fund is that given our strength and heritage as a local asset manager, we have a strong ability to interact with our investee companies and share the journey with them by helping them unlock shareholder value over time and optimising their business model going forward.”

Mr St Clair noted that retail investor demand in Singapore should remain strong, with households holding about 20 per cent of their assets in cash that could be deployed into the stock market.

There is also strong investor appetite for fundamentally strong local equities, supported by themes such as artificial intelligence and clean energy.

The fund’s portfolio will include IPOs and pre-IPO companies to tap a recent surge in listings here, with the Singapore Exchange recording seven new IPOs since July, excluding secondary offerings.

The exchange had said in August that

it has more than 30 companies in its IPO pipeline.

Some volatility can be expected from the investment though.

According to Fullerton, the fund is “only suitable for investors who seek long-term capital appreciation, and are comfortable with the greater volatility and risks of a fund exposed to equities primarily via direct securities, real estate investment trusts, IPOs and pre-IPOs”.

Companies in the Value-Up fund’s portfolio were selected based on a number of criteria, including their business’ growth model and sustainability, how they are using their assets to generate revenue, as well as openness of governance structures and receptiveness of their management teams to work with an active fund management system.

According to Fullerton’s prospectus, the fund aims to allocate 30 per cent of its total value into small- and mid-cap Singapore equities.

The fund will be denominated in the Singapore dollar and offer four share classes with an initial issue price of $1. Only two share classes will be available to the public. These are Class A shares, which require no minimum initial subscription, and Class I shares, which have a minimum initial subscription of $10 million.

Class B shares, which have no minimum initial subscription, and Class M shares with a minimum initial subscription of $100 million will be offered only to Fullerton’s affiliated or related companies, persons and entities.

The fund will charge a preliminary fee of up to 5 per cent of the gross subscription amount, and a realisation charge of up to 2 per cent. This charge is currently at 0 per cent.

Fullerton said it is currently working with distributors to make Class A shares accessible to retail investors, and will provide more details in due course.

Ms Jenny Sofian, chief executive of Fullerton Fund Management, said the new fund reflects the asset manager’s commitment to Singapore equities and long-term capital growth.

It also reflects Fullerton’s optimism and bullish outlook for Singapore’s equity market, supported by robust economic growth, increasing productivity, rising earnings potential and a stable currency, the asset manager said.

Data has shown that returns from Singapore equities have been getting stronger, with the Straits Times Index (STI) outperforming the MSCI AC Asia Ex Japan Index over the last two years.

The STI has been hitting new highs since its steady climb from April, surpassing 4,400 points on Oct 2 and closing at 4,421.71 on Oct 6.

Mr St Clair said that rejuvenating the market requires a multi-pronged approach with both supply- and demand-side policies like tax incentives for new listings and liquidity injections to foster a vibrant investment community.

He said strengthening investor education – an area that the EQDP will also focus on under MAS’ Grant for Equity Market Singapore scheme – is crucial to sustaining the positive momentum, especially with more listings on the horizon. “Fullerton is well-placed to facilitate the relationship between the companies and investors. We have the interactions with the corporate side, and a strong pulse on what retail investors want.”

Established in 2003, Fullerton Fund Management is headquartered in Singapore and is part of Temasek-owned asset management group Seviora.

The market is still waiting for updates from Avanda Investment Management and JP Morgan Asset Management – the two other asset managers appointed by MAS to manage the first tranche of the EQDP’s allocation.

Avanda said it hopes to launch its Singapore Discovery Fund in October, while JP Morgan has not revealed the name of its fund or an expected date of launch.