5 Singapore Winners from Fullerton's New EQDP Fund

Fullerton has just launched a new investment fund called ‘Fullerton Singapore Value Up’ under Monetary Authority of Singapore (MAS)’s $5 billion Enhanced Equities Market Development Programme (EQDP).

As we read this announcement, we can’t help but research what are some of the potential companies that could benefit from Fullerton’s new investment fund.

We did some digging into its investment strategies and portfolio and here are the criteria:

1. Sector allocations are according to market view and includes financials, real estate, and industrials.

2. Exposure to dividend-paying stocks.

3. Risky long-term capital appreciation stocks in direct equities, REITS, IPOs and pre-IPOs.

4. 70% into large-cap (>$5 billion), 30% into mid-cap (<$5 billion) and small-cap (<$1 billion) stocks

As such, we identified 5 Singaporean companies that fulfill all or most of the criteria specified above.

1. DBS Group (Large-Cap)

You might be surprised to find DBS here but hear me out.

DBS Group is the largest Singaporean financial group and company in the market, and provides investment and financial services to consumers and businesses.

• Consumer Banking/Wealth Management services make up the biggest source of revenue at 46%, followed by institutional banking (41%), and trading (4%).

• Singapore is its biggest contributor at 65%, while Hong Kong is its second biggest market (15%).

DBS fulfills most of the criteria here: A large-cap, financial player with a steady dividend policy.

• Largest Singaporean company with market cap of SG$147 billion.

• Steady dividend yield of 4.7%, with average dividend payout of 50%.

We like DBS Group better because of its outperformance in its share price compared to other Singaporean financial players like OCBC and UOB.

• We have previously highlighted DBS Group here. Check it out!

Financially, DBS Group has delivered strong growth in the past years.

• Average annual revenue growth of 15.8% from 2022 to 2024.

• Average annual profit growth of 18.3%

Price-to-earnings ratio (PER) is currently at 13 times, compared to historical PER of 11 times.

Target price is set at SG$53.23 with an implied upside of +1.3%.

2. CapitaLand Integrated Commercial Trust (Large-Cap)

CapitaLand Integrated Commercial Trust (CLICT) is a real estate investment trust (REIT) that owns and manages offices, retail, and commercial properties.

• Its retail portfolio is biggest at 38% of revenue, followed by office (31%) and integrated development (31%).

• Its main country exposure is still Singapore at 94% of revenue.

Firstly, Fullerton is an active investor in CLICT. Our bet is that Fullerton will invest similarly considering that it already has knowledge of the company.

• According to its Heritage Fund, CLICT makes up about 5% of the fund’s net asset value.

Secondly, it fulfills the criteria of being a: Large-cap REIT with dividend-paying policy.

• Market cap of SG$15 billion

• Dividend yield of 5.2% and dividend payout ratio of 77%.

CLICT has been growing steadily in the recent year but suffered in 1H 2025.

• Revenue growth of 1.7% in 2024 (SG$1.58 billion). 1H 2025 revenue declined by 0.9%.

• Profit grew by 8.2% to SG$934 million in 2024. 1H 2025 profit is down by 30%.

The company is currently trading at a PER of 19 times, above its historical median of 15 times.

Target price is set at SG$2.45 with an upside of +3%.

3. Mapletree Industrial Trust (Mid-Cap)

Mapletree Industrial Trust (MIT) is a real estate investment trust (REIT) that owns and manages industrial properties such as data centres, high-tech buildings and factories.

• Data centres make up the majority of its business at 42% of revenue, followed by flatted factories (21%), and high-tech buildings (21%).

• Most of its revenue are from Singapore (58%) and North America (35%).

Similar to CLICT, Fullerton has a stake in MIT in its previous investment funds.

• MIT makes up 2% of the net asset value in its Heritage Fund.

MIT fulfills certain Fullerton criteria: It is a mid-cap REIT in the industrial sector, with high dividend yield and an exposure to the high-risk, high-growth data centre sector.

• Dividend yield is at 6.2%

• Owns 55 data centres across North America. Well plugged in to the AI-related data centre boom.

Mixed financial performance in the past couple of quarters.

• Revenue declined at an average rate of 2% in 2025.

• Profit grew by 3.3% in 2Q 2025.

MIT is trading at a PER of 18 times compared to its historical average of 27.5 times.

Target price is set at SG$2.20 with an implied upside of +1.9%.

4. AEM Holdings (Small-Cap)

AEM Holdings provides testing solutions for semiconductors and other electrical components and sell them.

• Test cell solutions is its biggest revenue contributor at 60%, followed by contract manufacturing (37%).

• Diversified geographical exposure: Malaysia (31%), Singapore (21%), United States (16%), Vietnam (6%).

As MAS is big now on promoting small-cap companies, AEM fits that criteria with a market cap of SG$500 million.

It is also in the industrial sector, specifically providing semiconductor solutions and products to AI players in the region.

• AI sector is now undergoing strong growth, and is considered a long-term play but risky in its prospects.

Its financial fortunes are mixed.

• In the last 2 years, revenue has declined by half due to the end of the last electronic and electrical cycle (smartphones).

• In 2025, revenue is back up again by 9.6% as AI-related demand has boosted the demand for its testing capabilities.

• That is why AEM could be a risky long-term investment for investors.

AEM has been the centre of many investor’s interest in recent months for the AI boom. DBS has touted it as one of the three Singaporean companies to benefit.

• Hence, it is trading at a high PER of 40 times compared to its historical median of 10 times.

5. UMS Integration (Small-Cap)

One of the hottest AI-related Singaporean stocks right now.

UMS Integration (UMS) manufactures high-end semiconductors and other electrical components and also tests them.

• Semiconductor makes up the bulk of its business at 85% of revenue.

• Singapore is its biggest market at 67% of revenue, followed by United States (13%) and Malaysia (7%).

UMS fits right into Fullerton’s fund requirements: A small-cap industrial player that pays dividend and is plugged into the long-term trend of the AI-related boom.

• Small-cap: Market cap of SG$944 million

• Dividend yield: 3.7%

• Plugged into AI boom: Higher demand for AI-related chips

UMS’ financial performance are consistent with AEM Holdings.

• Revenue decline in 2023 and 2024 due to the end of the E&E cycle of smartphones.

• Rapid revenue growth of about 13% in 2025 due to higher AI-related demand.

However, UMS is trading at a more reasonable valuation of PER of 23 times compared to its historical average of 24 times.

UMS has a target price of SG$1.76 with an upside of +27%.

Cheers,

James Yeo