Singapore's Market Revival: How Policy and Strategy Fueled a $1.25B Fund

SINGAPORE – April 08, 2026 – In a powerful signal of resurgent investor confidence in Singapore’s capital markets, Lion Global Investors (LGI) announced today that its flagship LionGlobal Singapore Trust Fund has surpassed S$1.25 billion in assets under management (AUM). This milestone, achieved less than five months after the firm’s appointment under a key government initiative, was significantly propelled by a massive S$600 million influx from OCBC Bank’s wealth clients in March alone, underscoring a broader flight to stability and a renewed belief in the potential of local equities.

The fund's rapid growth serves as a major validation for the Monetary Authority of Singapore's (MAS) Equity Market Development Programme (EQDP), a multi-billion dollar initiative designed to invigorate the local stock market, deepen liquidity, and spotlight the value within Singapore-listed companies, particularly those outside the largest blue chips.

The Engine of Growth: Policy and Partnership

The surge in the LionGlobal Singapore Trust Fund’s AUM is a direct reflection of the synergy between strategic government policy and robust private-sector execution. The MAS EQDP, expanded to S$6.5 billion in February 2026, was created to break a cycle of limited liquidity and thin research coverage that has historically challenged the Singapore market. By appointing nine prominent asset managers, including LGI, BlackRock, and JP Morgan Asset Management, MAS is channeling significant capital to managers committed to developing the local ecosystem.

"Crossing the S$1.25 billion mark for the LionGlobal Singapore Trust Fund is a validation of our long-term vision of Singapore as a sound and stable capital market," said Teo Joo Wah, CEO of Lion Global Investors. He noted that the growth solidifies the firm's position "as a leading Singapore-asset provider amidst a challenging macro-economic environment."

This policy-driven momentum was amplified by a powerful distribution partnership. OCBC, LGI's parent group member, played a pivotal role by directing S$600 million in net inflows to the fund in a single month. This highlights the critical function of wealth management channels in translating institutional strategy into widespread investor participation.

Tan Siew Lee, Head of Group Wealth Management at OCBC, commented on the trend, stating, "We're seeing investor interest in Singapore equities build steadily as clients move toward markets with policy stability, strong governance and more predictable income, especially in the current global environment." This substantial flow of capital from OCBC’s clients demonstrates a clear demand for well-managed, locally-focused investment vehicles.

Unlocking Value in Overlooked Stocks: The SMID Strategy

Beyond the tailwinds of policy and partnerships, the fund’s remarkable performance is rooted in a disciplined and insightful investment strategy. The fund delivered an impressive 33.7% return over the last year, outperforming its benchmark by 12.7%. At the heart of this success is a long-standing expertise in Singapore's small- and mid-capitalisation ("smid") segment.

Historically, smid stocks in Singapore have been under-researched and have suffered from lower trading liquidity compared to their large-cap counterparts, often causing them to be overlooked by institutional investors. However, this segment is rich with high-quality, high-growth companies. LGI has turned this market inefficiency into a core strength. According to the firm, approximately 70% of the fund’s outperformance over the past decade has been generated from its smid picks.

Capitalizing on this proven track record and the renewed focus brought by the EQDP, the fund has materially increased its exposure to this segment. Its allocation to smid stocks, which averaged around 15% since 2014, now stands at a significantly higher 30% to 40% of the portfolio. This deliberate shift reflects a strong conviction in the untapped potential of these companies.

"Our strong performance has been underpinned by deep expertise in the smid segment and a consistent focus on fundamentals," said Erica Lau, one of the fund's lead managers. The fund, which has roots dating back to 1989, is ranked by Morningstar in the top quartile against its peers over one, three, five, and ten-year periods, showcasing consistent outperformance across various market cycles. This consistency is steered by Lau and co-manager Kenneth Ong, who bring a combined 40 years of experience in Asian equities to the table.

A Safe Harbor in a Stormy Market

The success of the LionGlobal Singapore Trust Fund is not an isolated event but rather a barometer of a larger market trend. In an era of global geopolitical uncertainty and economic volatility, investors are increasingly prioritizing safety, governance, and resilient income streams. Singapore, with its stable political landscape, strong regulatory framework, and robust corporate governance standards, is increasingly seen as a safe harbor for long-term capital.

The EQDP was designed to enhance this appeal, and the resulting influx of capital suggests it is working. The program encourages a deeper look into the Singapore market, revealing valuations that are attractive relative to global peers and providing a catalyst for price discovery. Investors, both institutional and retail, are recognizing that a core allocation to Singapore equities can serve as a defensive anchor in a diversified global portfolio.

The fund's availability for investment using Central Provident Fund (CPF) savings further broadens its accessibility, allowing a wider base of Singaporeans to participate in the growth of their domestic market. This democratization of access is a key component in building a more vibrant and resilient local investment culture.

A Competitive Revival for Singapore Equities

Lion Global Investors is a key player, but it is not alone in this market resurgence. The MAS has deliberately fostered a competitive environment by appointing a diverse slate of managers under the EQDP. Competitors like Fullerton Fund Management and Manulife Investment Management have also launched Singapore-focused funds with a strong emphasis on the smid segment, creating a dynamic landscape where active management and deep research are paramount.

This healthy competition is precisely what the EQDP aims to achieve: a more robust ecosystem with multiple managers actively seeking opportunities, thereby increasing research coverage, boosting liquidity, and ultimately benefiting all market participants. As a homegrown asset manager with over S$30 billion managed in Singapore-focused strategies, LGI's deep roots and long-term commitment give it a significant advantage.

Looking forward, the focus remains on building upon this momentum. "Our focus remains on disciplined stewardship of capital and strengthening the depth and resilience of Singapore's capital markets through our equity, fixed income and gold offerings," added Mr. Teo. "Through a consistent investment approach, strong governance and close collaboration with OCBC, Great Eastern and other ecosystem partners, we are committed to contributing meaningfully to sustainable market development while delivering long‑term value for investors."