At Fullerton, our investment philosophy is grounded in the belief that while markets are efficient in the long term, there exist inefficiencies in the short to medium term, where we can identify investment opportunities. Through active management, we leverage these opportunities to create value for our clients. We believe a diversity of investment perspectives is key to achieving superior risk-adjusted returns over the long term. These perspectives are always grounded in rigorous fundamental-driven research, as well as in-depth market and sector understanding.

 

Equities
 
Fixed Income

Our equities team seek to identify growth stocks that have been mispriced as a result of short-term market inefficiencies. As Growth at a Reasonable Price (GARP) investors, we believe that earnings growth is the long-term driver of stock price performance. However, it is important not to over-pay for such growth in order to achieve optimal performance. We therefore aim to identify stocks with the potential to generate superior and sustainable earnings growth over the medium to long term and are reasonably priced. This is best accomplished through our disciplined investment approach, based on comprehensive bottom-up research and deep understanding of the companies and markets we invest in.

We believe that investment conviction, not index weights, should be the criteria for including a stock in the portfolio. Although not benchmark focused, we are conscious of the active bets we take. We are unafraid of taking large decisive positions when they are underpinned by sound, fundamental research. As a result, the strength of our convictions is reflected in the size of our active positions. 

 

Fullerton's fixed income team believes that market inefficiencies in the short term provide opportunities to add value through active management. We adopt a disciplined investment approach, grounded in fundamental and qualitative analysis, and supported by a systematic quantitative investment framework. Our investment process is a combination of top-down macro research driving interest rate management, currency and sector allocation; as well as bottom-up analysis for credit selection and yield curve positioning.

We believe that this top down-bottom up investment approach provides the best opportunities for achieving superior risk-adjusted returns over the long term. Our managers’ in-depth knowledge, familiarity with their respective markets and frequent interaction with other asset teams, also give us an edge in crafting superior credit strategies for our clients.

 

Multi-Asset
 
Alternatives (Fund of Funds)

The Multi-Asset team is tasked to stay on top of global macro and market trends, and to assess implications for policies and investment strategy. With a dedicated strategy and currency function, we strive to be insightful and disciplined, and contribute our views to Fullerton’s Investment Committee. Our investment framework emphasises fundamentals, valuations, dynamics and technicals. 

We asses the macroeconomic environment and incorporate market expectations and investor positioning. We then evaluate risk versus return trade-offs. Given these assessments, we formulate Strategic Asset Allocation strategy. We are also tasked with macro alpha responsibilities, including Dynamic Asset Allocation and Foreign Exchange. The Multi-Asset team offers resilient and responsive multi-asset and balanced solutions that help clients attain their investment objectives. Even as we focus on generating returns, we maintain a strong focus on downside risk management.

  The Alternatives team offers multi-manager, multi-strategy Fund of Funds investment solutions. We see multiple drivers of return existing across the full alpha-beta spectrum and hence believe that a dynamic allocation of capital is necessary in order for us to take advantage of the best available opportunities in the marketplace.


The vast experience and diverse backgrounds possessed by our team (across equities, bonds, derivatives, quantitative research, commodities and currencies) aptly position us in our analysis of different hedge fund strategies. Our access to global managers resulting from our heritage and deep experience in covering global hedge funds, a keen familiarity with Asian hedge fund managers is another edge we possess; being in the heart of Asia and our Asian heritage has equipped us with the necessary skillset and understanding for evaluating hedge funds operating in the region.

Having an in-depth understanding of the markets and the risk-reward characteristics of various idiosyncratic opportunity sets existing within, underpins our fundamental research process and anchors our hedge fund investment philosophy. By employing such knowledge in the construction and management of hedge fund portfolios, we envisage being a key source of sustainable returns for clients across the cycle.