Singapore will evaluate fund managers appointed under its S$5 billion ($3.65 billion) Equity Market Development Programme (EQDP) over at least three years, with key performance indicators (KPIs) including investment returns, mobilising third-party capital and contributions to the city-state’s market ecosystem, a senior minister said on Friday.
The EQDP, launched by the Monetary Authority of Singapore (MAS), is aimed at strengthening the local fund management industry and boosting investor interest in Singapore-listed equities beyond large-cap stocks.
Deputy Prime Minister Gan Kim Yong, who also chairs MAS, told parliament that appointed fund managers had submitted investment strategies with a focus on Singapore equities, particularly quality small and mid-cap companies.
Managers will be assessed on three areas. First, their ability to crowd in additional commercial capital to amplify the programme’s impact by expanding the pool of funds flowing into the Singapore market.
Second, their investment returns, which will be benchmarked periodically against relevant equity indices across different time horizons.
Third, their developmental commitments, which include expanding operations in Singapore, strengthening research and investment capabilities, and taking part in market initiatives to deepen the equity ecosystem.
“Managers are also expected to support talent development and capability building, which contributes to the growth and vibrancy of Singapore’s equities market,” Gan said.
The first three fund managers under the EQDP were appointed in July. MAS is preparing to name a second batch before the end of the year, the minister added.
Together, the managers bring complementary strengths and strategies, and are expected to broaden the investor base, deepen market liquidity, and enhance Singapore’s position as a regional hub for equity investment.
The initiative forms part of Singapore’s broader effort to diversify its capital markets and encourage greater participation in local equities, amid competition from other regional centres seeking to attract global funds.