Bank of Singapore’s discretionary portfolio management ( DPM ) assets under management grew nearly 20% year on year in 2025 – specifically, its Singapore-focused discretionary mandates doubled during the same period, fuelled by strong demand from high-net-worth investors and family offices for Singapore equities through these mandates.

These mandates, the bank points out, allocate between 40% and 95% to Singapore equities, with the remainder invested in Singapore dollar-denominated bonds and cash.

Investor appetite for these Singapore-focused mandates grew as clients – particularly from Chinese mainland, Hong Kong, Malaysia and Singapore – sought to diversify and reduce concentration risks in US dollar-denominated portfolios.

Investors, the bank notes, were also drawn to the compelling dividend yields and valuations of Singapore equities and the stability of the Singapore’s economy, currency and capital markets.

Against this backdrop, the bank’s Singapore-focused mandates achieved double-digit investment returns in 2025. In particular, one of the mandates delivered annualized returns of 12% over the past five years, outperforming the MSCI Singapore Index.

DPM is a service where clients delegate day-to-day portfolio management to the bank, making decisions in line with their agreed investment strategies and risk profiles.

Singapore equities, dollar, initiatives

Singapore-listed companies, the bank shares, stand out regionally and globally for their attractive dividend yields. In Asia-Pacific, the Straits Times Index has led the region since 2023, surpassing Australia – which historically held the highest average yield over the past decade. With dividend yields of around 4% to 5%, the Singapore market offers attractive income for investors seeking stability and sustainable long-term returns in a low-interest rate environment.

The Singapore dollar, the lender shares, has also emerged as a viable alternative amid US dollar weakness, being one of only two currencies to appreciate against the greenback over decades. This strength makes Singapore equities a natural choice for portfolio diversification, offering both currency gains and steady dividend income.

Furthermore, with property cooling measures limiting foreign ownership of residential real estate, Singapore equities present a compelling alternative for investors holding Singapore dollars.

Recent initiatives, such as the Equity Market Development Programme, the enhanced Grant for Equity Market Singapore scheme and the newly announced Value Unlock package, have further renewed interest in Singapore equities.

While dividend yields remain a key draw for income-focused investors, growth opportunities, the bank argues, are also increasing, particularly among companies capitalizing on structural trends, such as the artificial intelligence investment boom, sustainability and smart manufacturing.

“The strong interest in Singapore assets reflects the country’s robust economy, strong governance and sound financial regulations, making it an attractive market for investment,” says Jean Chia, the bank’s global chief investment officer. “From a portfolio perspective, Singapore equities and bonds offer diversification and defensiveness during uncertain times. Exposure to the Singapore dollar also provides diversification against currency volatility.

“Going into 2026, we remain constructive on Singapore equities. Apart from sound fundamentals and healthy economic growth, the favourable risk-reward versus most developed markets should provide strong price support despite recent gains.”