Beyond the blue chips: Why iFAST-Amova is our pick over the EQDP funds

The Equity Market Development Programme (EQDP) remains a key pillar of this initiative. On 29 September 2026, the Monetary Authority of Singapore (MAS) appointed a third batch of five fund managers, allocating SGD 1.45 billion to Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments and Natixis. This brings total EQDP allocations to SGD 5.4 billion across 14 managers, leaving SGD 1.1 billion of the SGD 6.5 billion programme unallocated.

As of October 2026, nine EQDP funds from eight managers are available to investors, including one restricted to accredited investors.

EQDP funds differ in geographic scope and SMID exposure

The nine launched EQDP funds differ in their geographic mandates and commitment to small- and mid-cap (SMID) stocks. Two invest beyond Singapore, while the other seven focus exclusively on Singapore equities, with varying degrees of SMID exposure.

Regional funds

•         JPMorgan Singapore and Asia Equity Income: Invests at least 67% in Asia-Pacific ex-Japan equities and REITs, with Singapore accounting for 30–70% of its equity portfolio. It also sells call options to generate additional income. Its benchmark comprises 50% FTSE Straits Times All-Share Total Return Gross Index and 50% MSCI AC Asia Pacific ex-Japan Total Return Net Index.

•         BlackRock BF1 Advantage ASEAN Equity: Uses a systematic investment approach, holding 100–300 stocks across Singapore and other ASEAN markets, with around half of its portfolio invested in Singapore. Its benchmark is the MSCI AC ASEAN Investable Market Index (IMI).

Singapore-focused, SMID-oriented

• Amova Singapore Small Mid Cap Equity: Invests entirely in small- and mid-cap stocks, focusing on companies with strong growth potential and/or sustainable income generation. Its benchmark is the FTSE ST Mid & Small Cap Total Return Index.

Singapore-focused, all-cap with SMID exposure

The following five funds use the FTSE Straits Times All-Share Index or its total-return variant as their benchmark, while Avanda Singapore Discovery adopts an absolute-return approach without a specific market-index benchmark.

• Amova Singapore Dividend and Growth Equity: Combines dividend-paying stocks with growth companies, with SMIDs accounting for up to around 50% of its portfolio.
• Manulife Singapore Opportunities Income: Targets an SMID allocation of around 40% and can invest up to 20% in Singapore-dollar bonds.
• Eastspring Singapore Income and Growth Equity: Holds 20–40 stocks, with at least 35% invested in SMIDs.
• LionGlobal Singapore Trust: An established Singapore equity fund with a track record dating back to 1989. Following its EQDP appointment, it increased its SMID allocation to 30–40%, from a historical average of around 15%, and changed its benchmark from the MSCI Singapore Index to the FTSE Straits Times All-Share Index on 2 March 2026.
• Fullerton Singapore Value-Up: The first retail equity fund launched under EQDP. It targets a 30% allocation to SMIDs and focuses on companies with potential to unlock shareholder value through catalysts such as restructuring, divestments, share buybacks and improvements in profitability.
• Avanda Singapore Discovery: Focuses on Singapore-listed companies, with a strong SMID emphasis and investment themes spanning value creation, local champions and turnarounds. It targets an absolute return of 10–15% over three to five years and is available only to accredited and institutional investors. Unlike the other funds in this group, it does not use a specific market index as its benchmark.

Taken together, the EQDP funds offer investors different ways to access Singapore equities, from regional income strategies to Singapore-focused portfolios with varying levels of SMID exposure. However, participation in the programme alone does not necessarily make a fund the best choice for investors looking to benefit from Singapore’s market revival. For investors seeking broad access to Singapore equities beyond traditional blue chips, we favour the iFAST-Amova Singapore Equity Fund over the available EQDP funds, for reasons we discuss below.

An all-cap strategy with meaningful SMID exposure best captures Singapore’s investment opportunities

Singapore offers opportunities across established blue chips and smaller companies benefiting from market reforms. An all-cap strategy provides the flexibility to capture both, without being confined to either segment.

Large caps remain central to the STI’s earnings and dividend outlook. Industrials have overtaken S-REITs as the index’s second-largest sector, with companies such as ST Engineering and Yangzijiang Shipbuilding translating record order books into multi-year earnings visibility. Banks continue to benefit from wealth-management fees and a recovery in net interest income, while their dividends support total returns. A strategy that excludes blue chips would miss a significant part of Singapore’s earnings and income opportunities.

SMIDs offer an additional source of growth. Opportunities span domestic infrastructure spending, semiconductor supply chains and data-centre investments linked to global AI capital expenditure. EQDP allocations, institutional inflows and improving liquidity have also supported a broad re-rating of smaller companies. Following the strong gains, however, further broad-based multiple expansion is less likely to drive returns. Performance will increasingly depend on companies delivering earnings growth at reasonable valuations.

An active, all-cap approach can balance exposure to established earnings and dividend payers with selective SMID opportunities offering attractive valuations and earnings growth.

Why we prefer the iFAST-Amova Singapore Equity Fund

We prefer the iFAST-Amova Singapore Equity Fund over available EQDP funds with similar Singapore equity exposure for two reasons.

1. A longstanding commitment to SMIDs, with flexibility across market caps

The current fund managers have managed the iFAST-Amova Singapore Equity Fund since 4 July 2022. Its investment approach predates EQDP. While many Singapore equity funds have traditionally focused on large caps, iFAST-Amova maintained meaningful SMID exposure well before the programme began. Their commitment to smaller companies is therefore a longstanding investment conviction, not simply a response to EQDP-driven inflows.

Figure 1: iFAST-Amova has maintained meaningful SMID exposure, increasing its allocation from 18.4% in June 2023 to 30.2% in June 2026

The managers pursue two complementary investment themes. The first targets smaller companies trading at attractive valuations, with strong asset backing and identifiable catalysts such as restructuring or value realisation. These companies could also benefit from improved liquidity and greater institutional participation as market reforms progress. The second focuses on the “New Singapore” theme, targeting structural growth opportunities in renewable energy and biofuels, technology, data infrastructure, healthcare and logistics.

Crucially, the fund is not bound by a prescribed SMID allocation or required to replicate its benchmark’s sector and stock weights. While benchmark-aware, it can take positions that differ meaningfully from the STI, subject to a 10% limit on individual off-benchmark positions. This flexibility allows the managers to increase SMID exposure when valuations and growth prospects are attractive, while retaining or adding blue chips when they offer better risk-adjusted opportunities.

The fund’s longer-term performance supports the merits of this approach. As of 12 October 2026, it had returned 26.54% year-to-date, compared with 20.64% for the STI on a total-return basis. Its one-year return was 35.73%, against 28.52% for the index, while its three-year annualised return was 35.85%, compared with 28.60%.

Figure 2: iFAST-Amova has outperformed the STI across year-to-date, one-year and three-year periods

2. Stronger returns than comparable EQDP funds

iFAST-Amova’s benchmark-beating performance in recent years shows its ability to participate in Singapore’s equity rally while maintaining meaningful SMID exposure. Its performance since EQDP’s first retail fund launch also provides a useful comparison with the programme’s available alternatives.

Only two retail EQDP funds have a sufficiently long track record for comparison over this period: Fullerton Singapore Value-Up, the first retail EQDP fund launched on 2 October 2025, and LionGlobal Singapore Trust, an established fund that subsequently received an EQDP allocation. Most other EQDP funds were launched in 2026 and have limited performance histories.

Since 2 October 2025, iFAST-Amova has returned 36.1%, outperforming Fullerton Singapore Value-Up at 22.8% and LionGlobal Singapore Trust at 13.0%.

Figure 3: iFAST-Amova outperformed Fullerton Singapore Value-Up and LionGlobal Singapore Trust since 2 October 2025

In conclusion, for investors seeking exposure to Singapore’s market revival, we favour the iFAST-Amova Singapore Equity Fund over the available EQDP alternatives. Its ability to move across market capitalisations, longstanding commitment to SMIDs and stronger performance provide a compelling case for investors seeking opportunities beyond the STI’s largest constituents.

With the recent launch of its distribution share class (iFAST-Amova Singapore Equity D SGD), the fund also offers an option for investors who prefer regular distributions. In our view, its combination of flexibility, proven track record and broader market exposure makes it a more compelling choice for accessing Singapore’s next phase of growth.

Related article: Fund Spotlight: A National Day present? The iFAST-Amova Singapore Equity Fund is up 54% LTM*.

Q&A Series: iFAST-Amova Singapore Equity fund leads with a 61.31%* return over the past year

Declaration:

For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold a NIL position in the abovementioned securities.

This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report — including all investment theses, ratings, price targets and conclusions — has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.