Morningstar’s Manager Research analysts in Asia qualitatively cover a wide range of managed strategies. In addition, we continuously monitor the broader fund universe through discovery meetings. In this quarterly publication, we share our take on a selection of these strategies. For our first report in 2026, we highlight one alternatives fund, two equity funds, and two bond funds.
Increased accessibility and potential diversification benefits from traditional asset classes have drawn investors to alternatives strategies, which encompass a wide range of assets and investment approaches. Our first alternatives strategy idea in this series, M&G (Lux) Episode Macro, follows an opportunistic macro-trading approach that aims to deliver annualized rolling five-year returns of 4% to 8% above SOFR while keeping volatility below double digits. The manager takes a discretionary and contrarian approach to exploit temporary behavioral episodes in markets, though his ability to navigate the strategy across different market environments remains largely untested.
Singapore equities have been seen as a refuge within Asia ex-Japan amid ongoing market volatility, given their defensive characteristics, and Singapore equity funds have registered positive flows over the past year. This coincides with the Monetary Authority of Singapore’s efforts to revitalize the local equity ecosystem via initiatives aimed at deepening liquidity and broadening participation. Through the Equity Market Development Program, the MAS is directing capital to asset managers deemed to have robust investment capabilities and a willingness to allocate meaningful exposure to Singapore-listed companies, including small and mid-caps.
Fullerton Fund Management and J.P. Morgan Asset Management were among the first managers appointed for the EQDP, subsequently launching new strategies under the program in October 2025 and January 2026, respectively. Fullerton Singapore Value-Up prioritizes growing domestic companies exhibiting strong shareholder return generation. It invests purely in Singapore-listed stocks and allocates around 30% of assets to SMID caps. JPMorgan Singapore & Asia Equity Income seeks a total income of 5% to 7% over the cycle, generated via a combination of 3% to 5% from investing in dividend-paying companies and around 2% from writing call options. The strategy taps experienced managers from across the firm’s deep pool of resources.
Within fixed income, Asian credit has remained relatively resilient despite tight spreads, supported by stable corporate fundamentals and limited bond supply. Compared with global fixed income, the asset class’lower duration profile, distinct geographic focus, and differing issuer composition also offer some diversification benefits.
A common theme across this quarter’s bond fund ideas is their long-tenured portfolio managers, who have weathered a wide range of market conditions. Nomura Asia Investment Grade Bond is a high-quality offering that aims to outperform the JPM Asia Credit Investment Grade Index through rigorous relative-value analysis within the investment-grade universe. The team has successfully identified mispriced opportunities, helping the fund keep pace with rivals despite its conservative mandate. For investors with a higher risk appetite, the high-yield-focused BEA Union Investment Asian Bond and Currencyrelies on disciplined bottom-up credit selection with a strong track record navigating downturns such as the China property crisis.
For the full report, please visit: https://www.morningstar.com/en-hk/business/insights/research/apac-investment-opportunities
