JP Morgan Asset Management targets Singapore and Asia stocks with new fund under MAS initiative

SINGAPORE – JP Morgan Asset Management (JPMAM) has launched a new income-focused fund that will invest around half of its capital in Singapore-listed stocks to generate dividend income.

The fund manager on Jan 16 announced the Singapore and Asia Equity Income Fund (EQDP), which will allocate 50 per cent of its funds to Singapore equities.

About 15 per cent to 25 per cent of the capital will be invested in smaller companies that generate surplus cash after covering their daily operating costs.

The fund was launched under the Equity Market Development Programme, through which the Monetary Authority of Singapore (MAS) is allocating $5 billion to selected fund managers to invest in Singapore-listed stocks.

JPMAM said the fund’s exposure will be diversified, and the allocation of small- and mid-cap stocks will not be predominantly exposed to one sector.

It identified domestic consumption, infrastructure and real estate sectors as opportunities for growth.

The other 50 per cent of the new fund will be allocated to Asian stocks excluding Japan, and could include ASEAN companies, some of which have expressed interest in listing in Singapore.

JPMAM said that a key differentiator of its fund from other EQDP offerings is its income approach, which will see it investing mainly in dividend-paying stocks, while using options to boost income.

The options strategy is expected to help reduce portfolio volatility from market fluctuations and currency movements for Singapore dollar investors, the fund manager said.

It added that alongside its income-focused strategy, the fund will also invest in themes driving recovery and growth in China and India, as well as tech companies in the Asia-Pacific region.

The fund will be managed by a team with more than 15 years of expertise in ASEAN and Asian income strategies.

“Our approach combines dividends from Singapore and Asian stocks with options premiums and capital appreciation, providing investors with a multi-pronged strategy for total returns,” said Ms Pauline Ng, head of ASEAN equity team, emerging markets and Asia-Pacific equities at JPMAM.

JPMAM did not disclose the target yield of the fund, citing compliance reasons, but said that it would be “competitive”.

For comparison, JPMAM’s Asia-focused income fund – the Asia High Equity Income Fund – which includes investments in Singapore stocks, was launched in Hong Kong in 2023 and currently offers an annual yield of more than 8 per cent.

Mr Ong Chang Qi, ASEAN equities investment manager at JPMAM, told The Straits Times in an interview that the fund manager chose a regional approach instead of focusing solely on Singapore because it aims to provide its investors with a “high level of income throughout the cycle”. Being diversified helps the fund to hedge its investments if either Singapore or the wider Asian region underperforms.

He added that interest in Singapore companies had picked up even before MAS began its equity market review in late 2024. Combined with the underlying strength of Singapore’s economy and steady growth in company profits, recent measures to revitalise the market have further boosted investor interest.

Mr Ong said that the fund is targeting “Singapore-based savers” who want to have a healthy and regular source of income while maintaining equity exposure.

“Singapore investors love income and Asia. They continue to see their potential in the region, and so we designed our product in a way that allows them to continue to collect income and yet have a conservative approach to Asian equities.”

He added that the fund’s strategy, while conservative, takes a long-term perspective by investing in top quality growth companies, and does not simply select the highest yielding opportunities.

“We look at the company’s ability to generate healthy shareholder returns over the long term. So we do not mind buying a company that yields a little bit lower than the market, if we are confident that they can grow above the market significantly in the future. These are the kinds of investments in many of our positions eventually.”

The 50 per cent allocation to Asian stocks includes some Singapore stocks as well, he noted, which would bring the Singapore stocks weightage in the fund to around 53 per cent.

JPMAM was one of the first three fund managers appointed by MAS on July 21, 2025, to invest in the local stock market. Both Avanda Investment Management and Fullerton Fund Management had launched their EQDP funds in October 2025.

Mr Ayaz Ebrahim, chief executive of Singapore and South-east Asia at JPMAM, told ST that the fund manager needed the additional time to optimise its product before launching and also secure the right distributors.

“At the outset, we will partner with a local retail bank and a global private bank through exclusive distribution agreements, targeting retail investors and high net worth individuals, respectively,” said Mr Ebrahim.

“We want to marry the distributors with a very strong product, and we think a few more months is not going to make a difference for the benefit of our investors.”

The firm intends to partner with the banks beyond the exclusive distribution window, he added.

Previous success with other income-type products has given JPMAM the confidence to launch this new income fund.

Retail investment appetite has increased not only in Singapore but also South-east Asia and Hong Kong, and the investment firm wants to capitalise on falling interest rates to launch a new income product which can not only deliver higher yields but also offer diversification from the US dollar, the chief executive shared.

In August 2025,

JPMAM launched eight exchange-traded funds (ETFs) in Singapore

, bringing its total number of actively managed ETFs to 11.