Fund crosses billion-dollar milestone as interest in S’pore stocks grow

SINGAPORE – One of Singapore’s top-performing unit trusts has reached $1.25 billion in assets under management, as measures under the Monetary Authority of Singapore’s Equity Market Development Programme (EQDP) continue to drive interest in the local stock market.

The LionGlobal Singapore Trust Fund’s billion-dollar milestone was driven by strong performance, with returns of 33.7 per cent over the past year, beating its benchmark by 12.7 percentage points.

The fund was ranked in the first quartile for one-, three-, five- and 10-year periods against peers based on active returns, according to data from financial services firm Morningstar, as at Feb 28, 2026. Its peers comprise Singapore-focused funds with assets of more than $200 million.

The gains were led by the fund’s focus on small- and mid-cap stocks on the Singapore Exchange, which have generated about 70 per cent of excess returns over the past decade as at Feb 28, 2026.

Investor interest was also supported by the SGX’s appeal as a safe haven amid global uncertainty and improved valuations following measures under the EQDP, which was launched in February 2025.

LionGlobal Singapore Trust Fund is managed by Lion Global Investors, part of the OCBC group, and invests mainly in high-quality Singapore equities.

The equities comprise Straits Times Index constituents, including financials, as well as export-oriented sectors such as aviation, energy and marine, and telecommunications.

The fund has maintained an average allocation to small- and mid-cap stocks of around 15 per cent since 2014, but recently increased this to about 30 per cent to 40 per cent of the portfolio.

It is also included on the Central Provident Fund Investment Scheme List A, allowing those who are eligible to invest their CPF savings in the fund.

Mr Teo Joo Wah, chief executive of Lion Global Investors, said the milestone is a validation of the asset manager’s “long-term vision of Singapore as a sound and stable capital market”.

Ms Tan Siew Lee, head of group wealth management at OCBC, added that investor interest in Singapore equities is building steadily as clients shift towards markets with policy stability, strong governance and more predictable income, especially in the current global environment.

Looking ahead, LionGlobal Singapore Trust Fund said there is “increasing emphasis” on small and mid-capitalisation (SMID) companies that sit outside the traditional index heavyweights.

“The fund is looking at emerging growth areas such as artificial intelligence, biotechnology and space technology,” it said.

“These sectors are often exposed to geopolitical sensitivities, and Singapore’s neutrality positions it well as a launchpad for companies seeking cross-regional expansion.

“As a result, the investible universe is widening, particularly within the SMID space, reflecting a gradual shift towards companies aligned with long-term structural growth themes.”

It also said that it expects liquidity in the SMID sector to improve in the short to medium term.

Continued safe haven inflows into Singapore, supported by prolonged global geopolitical uncertainty, are helping to sustain liquidity at the index level, it said.

“The MAS’ EQDP is also helping to catalyse growth themes and attract market activity,” it said.

“As liquidity increases and valuations remain supported, more growth-oriented SMID companies may be encouraged to list on the SGX.

“This helps expand the investible universe and supports a virtuous cycle where stronger liquidity, greater market participation and broader sector representation reinforce one another over time,” it added.