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 believe that diversification among a group of carefully evaluated fund managers across different investment strategies is the key to the stability of a portfolio's risk and return profile. We aim to create value by adjusting the allocations to funds of different strategies and styles, as well as by methodically selecting managers with the right expertise to produce sustainable returns for each of the strategies adopted.

Our robust investment process encompasses five key areas: Asset and Strategy Allocation, Selection of Portfolio Funds and Portfolio Managers, Portfolio Construction, Portfolio Monitoring and Risk Management. The selection of individual hedge fund managers is vital towards value creation - the team has the skill set and network needed to access and analyse the different managers within the hedge fund world. We also believe that constructing a portfolio of hedge funds based on strategy alone does not adequately address risk. Our internal monitoring system is therefore critical in helping the team keep track of our manager's and the portfolio's underlying risk exposures.