Fullerton Absolute Alpha Strategy
Unique equity investment strategy designed to navigate an uncertain market environment
Fullerton Absolute Alpha Strategy
Unconstrained absolute return equity strategy investing in top growth ideas designed to achieve positive long-term returns across market conditions
What differentiates Fullerton's Absolute Alpha portfolios?
Most long-only strategies are benchmarked to an index with the objective to outperform the benchmark. Fullerton’s absolute return strategy seeks to generate an absolute positive return over a market cycle1, which we believe would better compensate investors for the risk associated with equity investing. Our risk assessment approach is straightforward — we prioritise our investors' primary goal of preserving their capital while looking to grow their wealth, striking a commitment between security and growth.
We seek to achieve these dual objectives with the following principles:
Best ideas companies
Concentrated portfolio of a small selection of growth stocks, carefully curated through bottom-up analysis and top-down macro considerations
Constant reevaluation
Frequently revisiting our assumptions to assess the soundness of our investment thesis. Strategies adapt quickly to market conditions as it changes, without being constrained by benchmarks
Drawdown management
Active use of cash and hedges to manage market uncertainties and preserve capital
Absolute return focused
To achieve strong risk-adjusted returns over the long term
1. Market cycle refers to 3-5 years.
Growth characteristics of an investable company
The Fullerton Absolute Alpha strategy has a holistic approach to growth investing, employing a comprehensive lens that encompasses a spectrum of growth-oriented companies:
Quality growth
Sustainable earnings growth driven by quality business franchise
Defensive growth
Sustainable earnings growth driven by quality business franchise
Structural growth
High earnings growth due to structural changes
Quality growth
Sustainable earnings growth driven by quality business franchise
The multifaceted strategy provides our fund managers with flexibility to adeptly navigate and optimise the portfolio under different market conditions.
What sets Fullerton equity capabilities apart from others?
Fullerton’s integrated equities team combines deep experience and comprehensive resources in drive our investment process. The team further leverages on the extensive knowledge and research of the broader Fullerton investment group that provides a rich environment for insights and a vibrant marketplace of ideas.
In addition, our investment and usage of augmented intelligence sharpens our analysis of market conditions, allowing us to pinpoint opportunities quickly and accelerate our decision-making.
These strategic advantages position us to anticipate and respond to market trends with agility and informed confidence. Since the establishment of the Absolute Alpha portfolios, the methodology has produced a notable track record of superior performance.
Find out more about Fullerton’s absolute alpha strategies
For in-depth detail, refer to the fund prospectus.
Disclaimer
This publication is prepared by Fullerton Fund Management Company Ltd (UEN: 200312672W) (“Fullerton”) and is for your information only. It is not for general circulation and no recommendation is being made to purchase or sell any securities whether referred herein or otherwise. This is not the basis for any contract to deal in any security or instrument, or for Fullerton or its affiliates to enter into or arrange any type of transaction. Any investments made are not obligations of, deposits in, or guaranteed by Fullerton.
Investments have risks and you may lose your principal investment. The value of the investments and any accruing income may fall or rise. Any past performance, prediction or forecast is not indicative of future or likely performance. The contents herein may be amended without notice. Fullerton, its affiliates and their directors and employees, do not accept any liability from the use of this publication.