KPIs of Fund Managers under MAS' Equity Market Development Programme
Ministry of FinanceSpeakers
Summary
This question concerns the key performance indicators and evaluation timeline for fund managers under the $5 billion Equity Market Development Programme, as raised by Mr Chua Kheng Wee Louis. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong stated that managers will be assessed over at least three years on their ability to mobilize third-party commercial capital. Evaluation also focuses on delivering investment returns against benchmarks and fulfilling developmental commitments, such as expanding local research teams and investment capabilities. Managers are expected to support talent development and enhance liquidity for small and mid-cap stocks to strengthen the local equity market ecosystem. Following the first three appointments in July, a second batch of asset managers is expected to be announced by the end of the year.
Transcript
40 Mr Chua Kheng Wee Louis asked the Prime Minister and Minister for Finance (a) what are the key performance indicators set for fund managers under MAS' Equity Market Development Programme; (b) whether they include returns performance and the level of third-party capital that will be crowded in; and (c) what is the timeline over which their performance will be evaluated.
Mr Gan Kim Yong (for the Prime Minister): The $5 billion Equity Market Development Programme (EQDP) aims to strengthen the local fund management ecosystem and raise investor interest in Singapore public equities beyond large-cap stocks. EQDP is designed to support the long-term development of our asset management and local equities market.
Asset managers appointed under EQDP have put forward investment strategies that have a strong focus in Singapore public equities and can help broaden investor participation in quality small and mid-cap stocks. The appointed asset managers will be assessed regularly for at least three years against how well they have met commitments in three areas: (a) ability to mobilise capital from other commercial investors into these strategies. This helps amplify the programme's impact, by bringing in a larger pool of commercial capital into our equities market; (b) ability to deliver investment returns. The investment performance of the selected strategies will be evaluated and compared against relevant equity market benchmarks periodically over different time horizons; and (c) ability to meet developmental commitments to deepen their presence in Singapore and contribute to the development of the equity market ecosystem. These include, expanding their teams in Singapore and deepening research and investment capabilities, while actively participating in equity market initiatives. Managers are also expected to support talent development and capability building, which contributes to the growth and vibrancy of Singapore's equities market.
The first three EQDP asset managers were appointed in July. The Monetary Authority of Singapore is on track to announce the second batch by the end of the year. Collectively, these managers bring different investment capabilities and strengths, and have proposed various commitments to contribute to developing our equities market. This will help broaden and deepen the ecosystem of market players and investors, and support sustained growth and liquidity in our equities market.