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

iFAST-Amova Singapore Equity Fund (the “Fund”) provides a resilient gateway to the "New Singapore" economy, strategically pivoting toward high-growth themes like renewables, medical technology, and digital infrastructure. By maintaining a robust allocation in small-to-mid cap stocks, the Fund captures the agility of emerging leaders that are uniquely positioned to navigate today’s heightened geopolitical uncertainty and market volatility. While global headwinds persist, Amova Asset Management’s disciplined focus on these structural shifts aims to help investors navigate change and gain exposure to innovative sectors that are shaping Singapore’s future competitive edge.

Amova Asset Management (“Amova”) is a global asset management firm dedicated to uncovering high-growth opportunities within the evolving Singaporean landscape. Amova’s investment approach is high-conviction and fundamentally driven, targeting forward-looking opportunities across small-to-mid cap equities and structural "New Singapore" themes to deliver long-term capital appreciation.

This collaboration between iFAST Financial Pte Ltd (“iFAST”) and Amova Asset Management started in 2022. The Fund was previously managed by DWS Investments Singapore Limited before being acquired by iFAST. Following the transition, iFAST partnered with Amova as sub-investment manager to further develop the Fund’s investment strategy and capabilities.

In the article today, we are pleased to have the Portfolio Managers provide their insights on the Fund.

1. The fund focuses on Singapore-listed equities. What advantages does the Singapore market offer investors beyond dividends — and how does the fund position itself to capture these?

The Singapore equities market is renowned for its high dividends, and this remains a key attraction. Corporates with strong balance sheets and steady earnings are well-placed to pay out dividends whereas those firms looking to unlock hidden value through restructuring and asset sales can also distribute any one-off proceeds in the form of dividends or share buybacks.

Singapore is evolving as it balances its traditional strengths with new engines of growth and a bold policy push to drive future growth.  As it continues to benefit from a stable government, strong financial system and diversified economy, new areas of growth are emerging.  These include sectors like renewable energy, data, technology and logistics.  Companies that are innovating or improving their business models – what Amova calls “New Singapore” – are driving this transformation across both large and small companies. Singapore’s role as a leading business and financial hub in Asia is an area that the government is watching closely to reinforce and grow.  The Monetary Authority of Singapore (MAS) has recently introduced initiatives to strengthen the Singapore stock market as part of a broader framework to drive a self-sustaining cycle of growth and innovation for the finance industry, where the Equity Market Development Programme (EDQP) is one of the key elements in this multi-step plan to support further development of the local fund management ecosystem. 

We have been positive on stocks in the small-mid cap space, including those in the consumer staples, technology and industrial sectors. The Fund is designed to benefit from these opportunities through a high-conviction, actively managed investment approach focused on companies delivering sustainable returns and meaningful transformation or what Amova terms as positive fundamental change.

2. The fund leans into "New Singapore" themes (renewables, tech, data, healthcare, logistics). What does this theme mean to you, why do you believe in it, and how does it manifest in the portfolio?

“New Singapore” is a term Amova first coined in 2015 to describe sectors and companies it believes will be drivers of future growth or represent the Singapore of the future. This perspective or new paradigm aligns closely with its investment philosophy and process which focuses on identifying companies capable of delivering steadily growing earning streams and/or undergoing positive fundamental change that will support the realization of their long-term value.

Energy transition has been a central theme in the Amova “New Singapore” narrative in recent years. The Fund has invested in Singapore companies well-positioned to capitalise on this trend, with a focus on generators (utilities) transitioning from brown to green energy, as well as transport engineering and infrastructure players in the global transportation eco-system. In addition, Amova has been constructive on utility infrastructure companies, where tightness in electricity markets in ASEAN is expected to support demand, particularly in light of the growth in artificial intelligence-driven data centers.  These trends have influenced how the portfolio has been shaped. Today, the Fund has exposure to these companies as illustrated in the Fund’s factsheet. 

3. The MAS SGD 6.5B Equity Market Development Programme (EQDP) is arguably one of the biggest structural tailwinds for Singapore equities in years. Given the Fund’s meaningful allocation to small-mid cap stocks, how is it positioned to benefit, and what does this mean for how the portfolio is managed going forward?

The EQDP is part of a government effort to strengthen the Singapore stock market and support its long-term growth. The initial measures aim to attract more investors, increase trading activity, and bring in a wider range of participants. This would help to keep the market active, ensures fair and efficient pricing of stocks and promote the Singapore Exchange as a venue for companies to raise capital efficiently. A key feature of the EQDP is its focus on driving greater interest and activities in the small and mid-caps segment and the MAS’ partnership with external fund managers to develop investment products that have a larger exposure to smaller companies for investors. In parallel, the government has introduced additional initiatives to encourage more companies to list on the local exchange. This opportunity extends beyond Singapore-focused companies and other growth companies that value the listing on a market closer to Asia, where investors are more familiar with their brand and operations. Collectively, these measures are expected to expand the investible universe and enhance the depth of the opportunities available, particularly within the small- and mid-sized company segment.

The Fund is well-positioned to tap into new opportunities with time as more companies enter the market and given that the Amova Singapore Equity strategy has a structural focus on small and mid-sized companies.

4. Index-hugging in Singapore almost inevitably means heavy bank exposure. The Fund holds less of Singapore's biggest banks than the STI. How did that positioning come about and importantly, where has that freed-up capital been put to work?

Even as Singapore’s indices are concentrated in banks, our approach is to remain selective relative to benchmark weights.

The outlook for banks has become less compelling. Following the peak in interest rates in 2025, net interest margin (NIM) expansion has moderated, reducing a key earnings tailwind. At the same time, loan growth particularly in property and business lending, has softened amid a slower economic environment, further weighing on growth expectations for banks.

By being underweight banks, we actively redeploy capital into areas with stronger structural growth potential, including information technology and industrials sectors. This allows us to capture opportunities across the broader market, particularly among companies benefiting from structural change and economic transformation.

5. As of 30 Apr 2026, the Fund has delivered a return of 61.31%* over the past year, ranking among the top-performing Singapore equity funds. What have been the key drivers behind this strong performance? For an investor who might default to the STI, what does this fund capture that the STI does not?

The Fund’s strong performance reflects a simple belief that alpha can be achieved through active stock selection to beat the index. Our investment philosophy is rooted in in-depth fundamental research, identifying undervalued companies with recurring returns or positive fundamental change. It is this disciplined approach, even amidst volatility over the past year, that has underpinned the Fund’s good performance.

Our focus on small- and mid-cap companies, combined with exposure to structural growth sectors such as financials, industrials, and communication services, has been a key driver. This positioning has been further supported by the Equity Market Development Programme, first announced in February 2025, which aims to boost liquidity, research and participation, especially beyond large-cap stocks.

The STI offers exposure to mature large-cap companies, as well as relatively high dividend yields and defensive characteristics. In contrast, the Fund captures a wider opportunity set, including emerging leaders and transformation stories. These growth opportunities are encapsulated in what we refer to as the "New Singapore" stocks or companies that represent the future of Singapore's economy.

We believe this active, bottom-up investment approach, which allows us to identify companies with attractive growth prospects and structural tailwinds beyond the benchmark, can help to continue to drive returns.

6. In an environment of geopolitical uncertainty and market volatility, how does the portfolio management team manage downside risk? — and what are the specific risks the team is focused on today?

Having a clear and disciplined investment approach is important, even more so in times of uncertain markets. Our investment process is guided by a well-defined investment philosophy, focusing on factors we believe that drive long-term returns. We aim to deliver on performance by staying with a disciplined approach across market cycles. The team carries out in-depth research analysis to assess investment ideas as part of our investment process. When selecting companies, we focus on researching the company’s fundamentals and quality attributes. This helps to reduce downside risk while positioning the portfolio for longer term growth. At the same time, we remain mindful of the external risks shaping the market environment. Elevated oil prices, supply chain adjustments, higher insurance costs, and shipping route diversions continue to weigh on global trade and near-term inflation. While these uncertainties persist, Singapore’s strength lies in its adaptability and policy discipline, which provides a strong foundation for long-term investing.  In addition, the portfolio is supported by our well-defined risk management framework. The risk management team monitors risks regularly using a range of tools including stress testing and scenario analysis as part of the overall process to proactively manage risks.

7. Bringing it all together — Given Singapore's evolving market structure, the tailwinds you have described, why does the team believe this is a compelling time for investors to consider the iFAST-Amova Singapore Equity Fund?

We believe the Singapore equity market has entered 2026 with good momentum, with the EDQP unlocking the potential of the mid- and small-cap universe with additional measure to improve market depth and liquidity. The “New Singapore” sectors and their companies are not only growing faster but also driving market transformation.  Singapore’s push towards sustainability is creating opportunities in energy transition, with companies pivoting from coal to renewables and others exploring hydrogen energy, renewable imports and even nuclear energy. The tech and innovation story is also gaining traction. Though still small in relative terms, Singapore is home to data centre operators, semiconductor equipment makers and life sciences firms serving global niches. Thus, in all, we see Singapore offering a rare combination of stability, yield and access to the next wave of regional growth.

*Based on iFAST-Amova Singapore Equity Fund April 2026 Factsheet. Returns are calculated based on NAV-to-NAV basis (without adjustments).

Disclaimer

This document is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. Any securities or sectors mentioned herein are for illustration purposes only and should not be construed as a recommendation for investment. Past performance or any prediction, projection or forecast is not indicative of future performance. The information contained herein may not be copied, reproduced or redistributed without the express consent of Amova Asset Management Asia Limited (“Amova AM Asia”). While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Amova AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Amova AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this document.

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