At Fullerton, our investment philosophy is grounded in the belief that investment opportunities exist across market cycles and as structural trends emerge. Through active management, we leverage these opportunities to create value for our clients. We focus on rigorous research, active management and calibrated risk taking, and believe a diversity of investment perspectives is key to achieving superior risk-adjusted returns over the long term. We uphold our stewardship responsibilities for all assets entrusted to us to achieve sustainable returns.

Equities
 
Fixed Income

Our equities team believes in growth investing through a bottom-up, total return approach. With an investment style centered on Growth principles, we believe that earnings growth is the long-term driver of stock price performance. As a House, we are firm believers in active management. We are able to generate alpha by focusing on bottom-up, fundamental research. We analyse growth companies with proven track records or growth potential that is under-estimated by the market. Additionally, we determine Fair Values of these growth companies through a Total Return approach, to construct portfolios that aim to deliver relative return or absolute return objectives.

For us to invest in a company, it must possess one of the following Earnings Growth characteristics: 

  • Structural Growth – high earnings growth rate due to structural changes
  • Quality Growth – sustainable earnings growth driven by quality business franchise
  • Defensive Growth – low earnings growth rate and low earnings volatility
  • Cyclical Growth – high earnings growth rate but earnings is cyclical in nature
 

Fullerton's fixed income team's philosophy is based on the following core beliefs:

  • We aim to deliver sustainable, long-term returns to clients.
  • We adopt a fundamental-based approach with a strong focus on valuation, across both our top-down macro and bottom-up credit research process.
  • We add value through active management, as market inefficiencies that exist can be exploited through active management. 
  • We adopt a thoughtful calibration of risks in our portfolios, and we seek to achieve the best possible risk-adjusted returns by taking prudent levels of risk across market cycles.

We believe that Asian markets are generally efficient but inefficiencies can be exploited through active management, by identifying suitable investment opportunities using a robust and disciplined investment approach. This approach is grounded in a comprehensive research-based view of company fundamentals, coupled with an in-depth understanding of market dynamics and technicals, built through many years of on-the-ground investment experience by the team. This allows us to identify the best opportunities in an inefficient market, and achieve superior risk-adjusted returns over the long term. 

Multi-Asset
 
Alternatives

Fullerton’s Multi-Asset team is guided by the following beliefs, namely:

  • Economic, liquidity and market cycles are strongly interconnected. Such cycles impact asset returns and volatility, depending on the phases they are in.
  • Over the shorter term, market dynamics could cause asset returns to diverge from fundamentals, thus presenting opportunities as well.
  • We believe in discretionary and disciplined decision-making, anchored on robust research. Top-down and bottom-up research is key to formulating good investment strategy.
  • Diversification is vital to achieving good risk-adjusted investment returns. This encompasses diversifying across assets, geographies, sectors, styles, securities and even portfolio managers.
  • The path of investment returns matters greatly to investors. Even as we aspire to achieve target returns over time, we actively manage drawdowns so as to preserve capital.

We believe that multi-asset solutions and strategies offer potentially good portfolio risk-adjusted returns and thus enable our clients to attain their investment objectives, while taking into account their risk tolerance.

 

The Alternatives team believes that compounded positive returns are best achieved over market cycles via:

  • Dynamic allocation of capital across the alpha-beta spectrum – we focus our efforts on finding sustainable skillsets and adaptive strategies so as to benefit from the multiple drivers of return existing across the full alpha-beta spectrum of investments; 
  • Long term partnerships with talented managers – we believe talented managers exist in the capital markets and want to tap on their local knowledge/ network and capitalize on such expertise; and
  • Diversification of risks over a time horizon – we seek to segregate idiosyncratic drivers and market sources of risk, and thus position our portfolios accordingly across the market cycle.

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