Manulife Investments Targets Under-Reported Singapore Small- and Mid-Cap Stocks With New Income Strategy
Singapore, (ANTARA/PRNewswire) – Today Manulife Investments announced the launch of the Manulife Singapore Opportunities Income Strategy (“Strategy”), a Singapore-focused equity income and growth strategy introduced under the Equity Market Development Programme (EQDP) of the Monetary Authority of Singapore (MAS).
The Strategy aligns with broader EQDP market development efforts to deepen research coverage, enhance liquidity, and broaden investor participation. It is designed to capture opportunities arising as this expansion strengthens the ecosystem as a whole, particularly in under-researched market segments.
With exclusive exposure to Singapore-listed equities and equity-related securities across market capitalisations, the Strategy places particular emphasis on small- and mid-cap companies, where coverage is thinner and persistent valuation inefficiencies create a range of attractive opportunities.
“Being selected for MAS EQDP marks meaningful support for our deep understanding of the Singapore equity market and our on-the-ground investment capabilities,” said Hui-Jian Koh, Chief Executive Officer, Singapore, Manulife Investments. “Our Singapore investment team is deeply connected with the local market and supported by the breadth of our research network across Asia and globally. The combination of local expertise and regional depth enables us to identify opportunities in Singapore that are often under-reported. Singapore Opportunities Income Strategy was created on this basis, offering a distinct income-and-growth proposition to investors while continuing to contribute to the development of the Singapore equity ecosystem,” Koh added.
Income and growth through a disciplined, bottom-up approach
The Manulife Singapore Opportunities Income Strategy aims to deliver a balanced outcome of income and growth through active stock selection. Income primarily comes from dividends, complemented by disciplined profit-taking when stocks approach fair value, while maintaining exposure to long-term growth opportunities. Rather than operating as a pure dividend strategy, the portfolio is constructed to balance income stability with capital appreciation, enabling investors to benefit from valuation resets arising from corporate restructurings, capital-management initiatives, and market reforms.
Stock selection is driven by a fundamental, bottom-up investment framework that assesses companies across growth prospects, cash flow generation, management quality, and valuation, with a strong emphasis on identifying clear catalysts for potential re-rating.
Capturing value in under-researched small- and mid-cap segments
Hock Fai Chan, Head of Equities, Singapore, Manulife Investment Management, said: “The Singapore equity landscape is unique, offering a wide and varied set of opportunities that extends well beyond the largest index constituents. We continue to see valuation gaps in small- and mid-cap companies where coverage is limited and catalysts for change are increasingly tangible. The strategy is designed to capture these opportunities while contributing to broader market development.”
The small- and mid-cap segment in Singapore presents a range of compelling opportunities due to lower analyst coverage, greater pricing inefficiencies, and increasing focus on shareholder yield.
The strategy is typically expected to hold 30 to 50 positions with high conviction, built on strong risk discipline, liquidity awareness, and diversification. While anchored to the FTSE ST All-Share Index, portfolio construction remains conviction-driven rather than index-based, allowing more dynamic deployment of capital to areas with pricing inefficiencies.
Singapore’s structural strengths underpin the investment case
Singapore’s status as a financial and wealth hub remains robust, supported by resilient macro fundamentals — including sustainable per-capita GDP growth, strong foreign direct investment inflows, and ample foreign exchange reserves. Singapore equities have delivered one of the best performances globally, with returns approaching 36% in the last year and outperforming regional and developed-market peers. Dividend yields, around 4.8%, remain among the highest in Asia and in major developed markets, reinforcing the market’s appeal for income-focused investors.
Structural reforms — including the MAS EQDP — are beginning to widen research coverage and deepen liquidity. Progress is particularly visible in the small- and mid-cap segments, where under-researched companies are attracting more investor attention. As companies accelerate restructurings and strengthen balance sheets, the growth of the digital-infrastructure, data-centre, and energy-transition supply chains continues to broaden the set of opportunities and supports a constructive medium-term outlook for Singapore equities.
For more information about Manulife Singapore Opportunities Income Strategy, visit: Manulife Singapore Opportunities Income Fund.
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