Prime Highlights:
- The new fund provides Singapore investors with enhanced income opportunities.
- It supports deeper market liquidity and wider investor participation.
Key Facts:
- The JPMorgan Singapore & Asia Equity Income Fund will invest 50% in Singapore and 50% in Asia ex-Japan markets.
- The fund uses an income-focused strategy with an options overlay, managed by a dedicated derivatives team.
Background :
JPMorgan Asset Management (JPMAM) has been approved to launch a new equity fund focused on Singapore under the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP).
The JPMorgan Singapore & Asia Equity Income Fund will invest half of its portfolio in Singapore stocks and the other half in Asia ex-Japan markets, including China and India. It aims to offer income-focused investment options.
Under the programme, MAS plans to allocate S$5 billion to selected asset managers that commit capital to Singapore-listed companies. JPMAM is the first global asset manager to be appointed under the initiative.
The fund will be managed by Singapore-based portfolio managers Pauline Ng and Changqi On, supported by JPMAM’s Asean and Asian income investment teams. The fund will focus on income by investing in high-yield stocks across different company sizes and sectors. It will also use options to boost returns, managed by a specialist derivatives team led by Stuart O’Neill.
In addition to income generation, the fund will seek exposure to long-term growth themes across Asia, including economic recovery in China and India, as well as opportunities within the Asia-Pacific technology sector.
Commenting on the launch, Pauline Ng said Singapore’s equity market offers a diverse range of high-yielding investment opportunities, making it well-suited for income strategies. She added that the wider Asian market also provides favourable conditions for options-based income approaches, particularly due to higher levels of market volatility.
Ayaz Ebrahim, JPMAM’s chief executive for Singapore and Southeast Asia, said the firm is proud to support MAS’s efforts to revitalise the local equity market. He said the new fund will offer better income options for Singapore investors while helping improve market liquidity and investor participation.
The launch also strengthens Singapore’s role as a regional asset management hub and shows ongoing cooperation between global fund managers and regulators.
