BlackRock to Launch Quant Fund Trading Singapore Stocks
BlackRock Inc. plans to launch a fund next month focused on large Southeast Asian stocks, according to people familiar with the matter, a move supporting Singapore’s drive to boost liquidity in the local market.
The actively managed fund, with at least S$500 million ($387 million) in assets, will allocate 50% or more to Singapore at the start, the people said, declining to be identified discussing non-public information. It will also have an underweight position in Indonesia in the beginning, they said.
The fund will use the MSCI Asean Index as its benchmark, and employ quantitative strategies to favor value, yield and momentum, with a bias toward large-cap stocks. Some Singapore-based companies — such as ride-hailing service Grab Holdings Ltd. and e-commerce firm Sea Ltd. — will be eligible investments, they said.
The launch comes amid the Singapore government’s ongoing plans to enhance the stock market by allocating S$6.5 billion to several domestic and global assets managers, including BlackRock and JPMorgan Asset Management. New funds from the initiative may provide further momentum for the benchmark Straits Times Index, which is up about 6% for the year despite the Iran war jitters after a 23% rise last year.
The team that will manage the fund is based in Singapore, the people said.
A BlackRock spokesperson declined to comment.
The MSCI Asean Index, which captures large- and mid-cap companies across Singapore, Malaysia, Thailand, Indonesia, and the Philippines, is down about 2% this year, after a 12% jump in 2025.
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