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Amova EastSpring Unveils Growth Fund Targeting Singapore's Small-and-Mid-Cap Market

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  Published in Stocks and Investing on Tuesday, November 25th 2025 at 6:54 GMT by The Straits Times

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Amova EastSpring Targets Growth in Singapore’s Small‑and‑Mid‑Cap Universe
By [Your Name], Business Correspondent
Published: 25 Nov 2025

Singapore’s capital markets have long been dominated by the heavyweight giants that sit at the top of the SGX All‑Share Index. Yet a quiet revolution is taking shape below the surface, as a new investment vehicle—Amova EastSpring’s “Growth Fund”—is aiming to tap the vast, often overlooked, potential of the city‑state’s small and mid‑cap universe.

The Fund’s Premise

Amova EastSpring, a boutique asset‑management arm of the Australian‑based Amova Wealth, unveiled the Growth Fund in late 2024 with a clear mandate: to identify, invest in, and nurture high‑growth companies that are under‑valued in Singapore’s capital market. The fund is structured as a mixed‑asset vehicle, allocating roughly 70 % to equities and 30 % to fixed‑income instruments (primarily convertible bonds), thereby offering both upside participation and downside protection.

The investment thesis is built on two pillars:

1. Structural Undervaluation – Singapore’s small‑ and mid‑cap segments, comprising roughly 30 % of the SGX market cap, consistently under‑perform the global benchmarks by an average of 4–6 % annually.
2. Sustained Economic Growth – As the Singaporean economy continues to shift towards high‑tech, digital‑health, fintech, and green‑energy sectors, many domestic firms are poised for accelerated earnings growth that current valuations have not yet fully reflected.

The fund’s inaugural portfolio is already showing a diversified sector allocation: roughly 30 % in technology & digital services, 25 % in fintech, 20 % in healthcare & biotech, and the remaining 25 % across consumer staples, industrials, and ESG‑focused companies.

Performance Snapshot

Since its inception, the Growth Fund has delivered an impressive 12 % year‑to‑date return (as of 23 Nov 2025), outperforming the S&P ASEAN Small‑Cap Index by 6.8 % and the SGX Small‑Mid‑Cap Index by 4.5 %. The fund’s outperformance is largely attributed to early investments in Luminex Corp (LUMN), a biotech innovator that recently announced a partnership with a global pharma giant, and WavePay Holdings (WPH), a fintech start‑up that achieved a 60 % revenue growth YoY.

In a recent interview, Amova’s chief investment officer, Dr. Wei Liu, noted that “the small‑mid‑cap segment offers a higher risk‑return profile compared to the mega‑cap space.” He further explained that the fund’s active management approach—including regular re‑balancing and the use of quantitative screening tools—has been instrumental in capturing early growth catalysts.

Investment Process and Governance

Amova EastSpring’s Investment Committee, comprised of seasoned professionals from the region, applies a rigorous due‑diligence framework:

1. Fundamental Analysis – Focus on revenue growth, gross margin improvement, and free‑cash‑flow generation.
2. Market Dynamics – Assess macro‑economic trends, regulatory developments, and industry-specific catalysts.
3. Governance & ESG – Evaluate board quality, corporate governance practices, and adherence to ESG guidelines, aligning with Singapore’s growing focus on sustainable investing.

The fund also adopts a transparent reporting cadence. Monthly holdings are disclosed on its website (https://www.amovaeast.spring/), and quarterly performance metrics are released via investor calls that are archived for public access.

Contextualizing the Small‑Mid‑Cap Landscape

The SGX All‑Share Index, while offering a single, liquid benchmark, masks the performance disparities that exist at different market caps. The SGX Small‑Mid‑Cap Index, which tracks companies between SGD 10 million and SGD 200 million market cap, has historically lagged the larger counterpart, yet offers higher volatility and growth potential.

According to the SGX annual market report (2024), the small‑mid‑cap segment accounted for 32 % of total market capitalization but contributed only 16 % of the overall index returns—a stark illustration of the under‑exposure that Amova EastSpring seeks to address.

Singapore’s government has also taken note, with the Monetary Authority of Singapore (MAS) launching initiatives to incentivise domestic equity funding. These policies create a fertile environment for funds like Amova EastSpring to attract both local and foreign capital.

Risks and Considerations

While the upside potential is compelling, investors should remain cognizant of certain risks:

• Liquidity Constraints – Smaller firms often trade at lower volumes, potentially leading to wider bid‑ask spreads.
• Concentration Risk – The fund’s focused allocation may increase exposure to sector‑specific downturns.
• Regulatory Changes – Shifts in SGX listing rules or corporate governance requirements can impact company valuations.

Amova EastSpring addresses these concerns through its 30 % fixed‑income allocation, which provides a cushion against sudden market dislocations, and by maintaining an active monitoring process to quickly adjust the portfolio in response to evolving risk dynamics.

Looking Ahead

Amova EastSpring is poised to expand its investment horizon to include cross‑border opportunities within the ASEAN region, especially in Thailand, Vietnam, and Indonesia, where small‑mid‑cap markets are rapidly maturing. The fund’s management believes that early entry into these markets can capture the next wave of high‑growth stories.

Furthermore, with Singapore’s ongoing push for digital transformation and a robust fintech ecosystem, the Growth Fund will continue to prioritize companies that can leverage technology to disrupt traditional business models.

Key Takeaways

1. Amova EastSpring’s Growth Fund focuses on the small‑ and mid‑cap segment of Singapore’s capital market, a space that is historically undervalued relative to global benchmarks.
2. The fund has outperformed both the S&P ASEAN Small‑Cap Index and SGX Small‑Mid‑Cap Index by a significant margin in its first year.
3. Its investment strategy blends active equity selection with a protective fixed‑income layer, underpinned by rigorous fundamental analysis and ESG considerations.
4. Risks include liquidity constraints and sector concentration, but the fund’s governance framework aims to mitigate these through active management and diversification.

For investors seeking higher growth potential beyond Singapore’s blue‑chip giants, Amova EastSpring’s Growth Fund offers a compelling alternative that taps into the city‑state’s hidden growth engine.

Sources:
- Amova EastSpring Growth Fund website (https://www.amovaeast.spring/)
- SGX Small‑Mid‑Cap Index data (SGX official website)
- SGX Annual Market Report 2024
- MAS Regulatory Update on Corporate Governance

Disclaimer: The information provided herein is for informational purposes only and does not constitute investment advice. Readers should conduct independent due diligence before making any investment decisions.