Key facts
- Singapore's central bank selected five international asset managers to handle S$1.45 billion (US$1.3 billion) in equity strategies.
- The appointments are the third batch under the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme.
- Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments and Natixis Investment Managers were named.
- The MAS has allocated $3.95 billion across nine asset managers in the first two batches.
- A $20 million market-making sleeve was announced under the Grant for Equity Market Singapore scheme to improve trading efficiency.
- The MAS aims to deepen institutional and retail participation in Singapore equities.
Singapore's central bank has appointed five international asset managers to manage S$1.45 billion (US$1.3 billion) in locally focused equity strategies, marking its latest effort to bolster its stock market amid increasing competition from Hong Kong. The selected firms are Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments, and Natixis Investment Managers. These appointments constitute the third batch of mandates awarded under the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme, which aims to inject liquidity and vibrancy into the local market. The MAS will place a total of $1.45 billion with these new managers, bringing the total allocation under the programme to $5.4 billion, out of a total planned $6.5 billion. The first two batches saw $3.95 billion allocated across nine asset managers. Minister for National Development and deputy chairman of MAS, Chee Hong Tat, announced the appointments at the SuperReturn Asia Conference, stating that the earlier managers have established a strong foundation and are deploying capital into Singapore equities. He added that this third batch will further enhance investment capabilities and support job creation. The MAS is also reviewing proposals for a fourth batch of asset managers, expected to be announced in 2027. Additionally, a $20 million market-making sleeve was introduced under the Grant for Equity Market Singapore scheme to improve trading efficiency and increase the number of institutional-grade stocks, targeting new listings and mid-cap stocks to enhance liquidity. These efforts aim to deepen both institutional and retail participation in Singapore equities. Meanwhile, Hong Kong's Hang Seng Index has significantly underperformed global benchmarks since early 2021, despite structural interventions. International capital, particularly from family offices, is increasingly favoring Singapore due to its perceived political and institutional neutrality, legal reliability, and a broad asset management ecosystem, contrasting with Hong Kong's growing integration with mainland China which introduces jurisdictional uncertainty for international investors.