J.P. Morgan Asset Management ( JPMAM ) has received the regulatory approval to launch its JPMorgan Singapore & Asia Equity Income Fund under the Monetary Authority of Singapore’s equity market development programme ( EQDP ).

With a balanced allocation of 50% to Singapore equities – spanning large, mid, and small-cap stocks – and 50% to Asia ex-Japan equities, the fund is designed to harness the full advantage of these equity markets. Its income approach, combining a portfolio of income-oriented stocks with an options overlay, is a key differentiator among diverse EQDP offerings.

By investing across financial instruments, countries and sectors in Asia, the fund aims to deliver diversified income opportunities. In addition to capturing stock dividends, it employs a disciplined options overlay on an underlying equity income portfolio to generate additional income.

The options overlay strategy, combined with meaningful SGD exposure, is designed to help reduce portfolio volatility from market fluctuations and currency movements for Singapore dollar investors.

While it is an income-focused strategy, the fund also invests in constructive themes driving Asian equities, including the recovery and growth in China and India, and the positive outlook for Asia-Pacific tech companies. Some of these opportunities may currently have lower dividend yields but have the potential to deliver higher total returns in the future as a result of growth and/or improved free cashflow generation.

The fund is managed by Singapore-based equity portfolio managers Pauline Ng and Changqi Ong, supported by a team with over 15 years of proven expertise in generating alpha across Asean equity and Asian income strategies, and further strengthened by a dedicated derivatives group headed by Stuart O’Neill.

“Singapore’s equity market is home to high-yielding stocks across market caps and sectors, and we are excited to bring a differentiated solution that leverages these opportunities,” says Pauline Ng, head of Asean equity team, emerging markets and Asia-Pacific equities at JPMAM. “Asia’s equity market, notably including Singapore, offers a favourable environment for income investing. Around the wider region, this includes options overwriting: typically, higher implied volatility translates to higher option premiums, which we seek to deliver by selling call options on local market indices. Our approach combines dividends from Singapore and Asian stocks with options premiums and capital appreciation, providing investors with a multi-pronged strategy for total returns.”

Over the past decade, JPMAM’s equity approach has recorded higher income, lower volatility, and equity-like returns compared to a traditional 50-50 equity mix, the firm says. Its product suite now spans global, European, Asian, and dedicated Chinese equity markets.

The fund is available to retail, accredited, and institutional investors in Singapore.