Amova announces two new funds with focus on SGX small and mid-cap stocks
They are part of MAS’ EQDP, which aims to revitalise the local bourse
[SINGAPORE] Amova Asset Management, formerly Nikko Asset Management, announced that it will be launching two new funds as part of the Singapore Equity Market Development Programme (EQDP).
The two funds – Singapore All Share Strategy and Singapore Small Mid Cap Strategy – will focus on companies listed on the Singapore Exchange (SGX), with some bias towards small and medium-cap stocks.
At a media briefing on Tuesday (Nov 25), Eleanor Seet, president and head of Asia ex-Japan at Amova Asset Management, said that the firm intends to launch the funds in the first quarter of 2026.
This comes days after Amova was appointed as an asset manager by the Monetary Authority of Singapore (MAS) under the EQDP.
It is part of the second batch announced by the authority, which has six asset managers that have been allocated S$2.85 billion. The first batch of asset managers that was announced in July will manage S$1.1 billion.
The first product, the Singapore All Share Strategy, will focus on SGX-listed companies of varying market-capitalisation size. It is targeted at investors who are seeking diversified, broad-based Singapore equity exposure, Amova noted.
The product will have a “strong tilt” towards small and medium-cap stocks listed on the local bourse, added Seet.
Responding to queries from The Business Times, Lai Yeu Huan, head of Asian equity at Amova, clarified that around half of the funds in the product will be focused on small and medium-cap stocks.
Kenneth Tang, senior portfolio manager for Asian equities at Amova, added that it will follow the methodology of FTSE. Based on this, the largest mid-cap stock has a market capitalisation of about S$8 billion.
The second product, the Singapore Small Mid Cap Strategy, will focus solely on SGX-listed small and mid-cap stocks. It aims to target “alpha-seeking investors” who are focused on emerging opportunities in smaller companies.
“We are quite convinced that that is a product that many are interested in,” noted Lai.
He added: “We focus on identifying undervalued companies capable of generating high, sustainable returns and undergoing significant positive fundamental change.”
He pointed out that both new products will not deviate too much from Amova’s current funds in Singapore, with respect to the number of holdings. The current funds have between 30 to 50 stocks each, he shared.
“Game changer”
The announcement of both products aligns with the goal of the EQDP, which is to revitalise the local stock exchange.
Describing the EQDP as a “game changer”, Tang said that the programme can improve liquidity well beyond the large-cap names.
“We believe (the EQDP) can also re-energise SGX as a dynamic fundraising venue, broaden access to growth capital and, more importantly, strengthen Singapore’s position as a market for listings and deepen the appeal of the equity market.”
He added: “We know banks and Reits (real estate investment trusts) dominate (the Singapore market), but the real growth is really happening in what we call the mid and small-cap companies.”
However, Lai acknowledged that the small and mid-cap stocks in the Republic are “relatively less liquid at this point in time”.
He said that Amova will take a more patient view on this, as it believes that liquidity and activity in the small and mid-cap segment of the market will improve as the EQDP is rolled out.
The final phase of EQDP appointments is expected to be announced in the second quarter of 2026.
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