Eastspring launches EQDP fund targeting income and growth with all-cap strategy

[SINGAPORE] Eastspring Investments, the asset management arm of insurance group Prudential , has launched an active all-cap Singapore equity strategy under the Monetary Authority of Singapore’s (MAS) S$6.5 billion Equity Market Development Programme (EQDP).

The Eastspring Investments Unit Trusts – Singapore Income and Growth (SING) Equity Fund is “relatively unique” in its dual focus on both income and growth opportunities, the Asia-headquartered asset manager said on Thursday (Jul 30).

Structured as a unit trust, the fund will invest across large-cap, as well as small and mid-cap (SMID) stocks. At least 35 per cent will be allocated to the SMID stocks.

“This is our target minimal allocation, and this position may increase over time”, Bryan Yeong, portfolio manager, Eastspring Investments, told The Business Times.

The allocation reflects Eastspring’s “belief that SMID companies can be an important source of both growth and diversification within the portfolio,” he added.

He also noted that maintaining majority of the allocation to larger-cap companies helps provide liquidity, resilience and income generation.

The SING equity fund will be available to both institutional and retail investors, with a minimum initial investment of S$1,000 and subsequent investments from S$100.

It is designed to support the broader objectives of Singapore’s equity market reforms by providing long-term capital to quality Singapore-listed companies across the market-cap spectrum, Eastspring said.

“We believe active fund management can help improve market participation, enhance price discovery, and direct capital towards companies with strong fundamentals and growth prospects,” it added.

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Bottom-up valuation-driven approach

Eastspring has been operating in Asia for over 30 years and has been managing one of the largest Singapore equities portfolios since its inception in 1999.

It was appointed by MAS in November 2025 as part of the second batch of six asset managers under the EQDP.

The other managers in that batch were Amova Asset Management, AR Capital, BlackRock, Manulife Investment Management (Singapore) and Lion Global Investors. Together, the six were allocated S$2.85 billion.

The EQDP is an initiative aimed at deepening investor engagement and improving liquidity in Singapore’s equities market.

A third batch of managers is expected to be announced later this year, while managers from earlier rounds continue to launch their funds.

Eastspring’s SING equity fund joins a growing suite of Singapore-focused EQDP products launched by participating asset managers, although each adopts a different investment approach.

Manulife Investment Management’s Singapore All-Cap Equity strategy allocates about 40 per cent of its portfolio to SMID companies.

Fullerton Fund Management’s Singapore Value-Up Fund invests exclusively in Singapore-listed securities across the market-cap spectrum, including initial public offerings and secondary listings.

Avanda Investment Management’s Singapore equity strategy, meanwhile, allocates around half its portfolio to Singapore-listed mid-cap companies.

Eastspring said that the SING Equity Fund invests in a portfolio of 20 to 40 income and growth stocks. It is actively managed against the FTSE Straits Times All-Share Index.

The fund adopts a “bottom-up valuation-driven approach”, supplemented by the portfolio manager’s knowledge of structural themes.

Its investment process comprises four stages: idea generation, fundamental analysis, portfolio construction, and risk control and review.

Its launch comes as investors have traditionally viewed Singapore equities primarily as an income play rather than a source of growth. However, the market has delivered strong returns in recent years, said Vis Nayar, chief investment officer at Eastspring Investments.

The Straits Times Index gained 27 per cent over the past year and 56 per cent over three years, outperforming many larger equity markets.

“We therefore believe investors do not have to choose between income and growth: by combining Singapore’s strong income foundations with active research to uncover high-quality SMID companies, we aim to capture both,” added Nayar.

Constructive long-term outlook

Alongside the fund launch, the asset manager also published a co-branded white paper with Singapore Exchange examining the resilience and evolving opportunities in Singapore equities.

Eastspring told BT that the independent research project was developed to contribute constructive research and perspectives to the industry.

The white paper explores how Singapore’s equity market is entering a new phase, evolving from a market recognised primarily for resilient income into one offering broader growth opportunities for long-term investors.

Among its key findings, the white paper noted that Singapore equities have delivered a resilient risk-return profile compared with many Asian peers over the past decade. It also highlighted diversification benefits, given their relatively low correlation with North Asian and technology-driven markets.

Nayar also noted that Singapore equities remain underappreciated by global investors, who often benchmark the market alongside other Asean markets despite differences in risk-return profiles, currency dynamics and institutional characteristics.

“The market’s visibility with global allocators should rise over the next two to three years as EQDP broadens the investor base,” he added.

Against this backdrop, Yeong said Eastspring remains constructive on the long-term outlook for Singapore equities.

“Over the next five to 10 years, we expect opportunities to emerge from structural themes such as digitalisation, artificial intelligence and data centre investment, energy transition, infrastructure spending and rising regional wealth,” he added.

Alongside these growth drivers, he noted that many Singapore-listed companies continue to generate strong cash flows and offer attractive dividend yields.

Such characteristics should remain appealing in a world where investors increasingly value quality and income, he added.

“While market conditions will inevitably fluctuate, we believe Singapore is well positioned to remain an attractive destination for long-term capital,” said Yeong.