Manulife Investment Management launches Singapore all-cap fund strategy under MAS’ EQDP

[SINGAPORE] Manulife Investment Management said it will launch a fund strategy with an emphasis on Singapore small and mid-caps, shortly after it was appointed among a second batch of asset managers under the Equity Market Development Programme (EQDP).

On Wednesday (Dec 3), it said that about 40 per cent of its portfolio will be allocated to Singapore small and mid-cap companies, while maintaining “significant exposure” to large caps to ensure liquidity and scalability.

The asset manager will launch a Singapore All-Cap Equity strategy that is research-driven and “benchmark-unconstrained,” with stock selection as the “main source of long-term value”.

Chan Hock Fai, head of equities, Singapore, Manulife Investment Management, said: “We see tremendous opportunities in Singapore’s small and mid-cap space, which has historically been under-researched and overlooked.”

Manulife was appointed by the Monetary Authority of Singapore (MAS) on Nov 19 in a second batch of six asset managers under the EQDP. The other asset managers were Amova Asset Management, AR Capital, BlackRock, Eastspring Investments (Singapore) and Lion Global Investors (LGI).

This batch of asset managers will receive a total allocation of S$2.85 billion, reported The Business Times previously.

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Unlike Manulife, batchmate LGI will deploy its EQDP allocation into its existing LionGlobal Singapore Trust Fund. It is not planning to launch any new funds.

The same strategy will be adopted for its trust fund, by allocating 60 to 70 per cent to large-cap stocks, and 30 to 40 per cent to mid caps.

The EQDP is a S$5 billion initiative to deepen investor engagement and enhance liquidity in Singapore’s equities market.