Fullerton launches two mutual funds

Fullerton launches two mutual funds

Fullerton Fund Management has launched two mutual funds targeted at retail investors.

The move last Friday follows announcements by other fund managers of retail offerings in recent weeks.

Called the Fullerton Dynamic Strategies funds, one fund is for investors with "aggressive" risk profiles and the other is for those with "balanced" risk profiles.

The "aggressive" fund aims for a long-term asset allocation of 20 per cent to bonds and 80 per cent to equities, while the "balanced" fund aims to invest 50 per cent in bonds and 50 per cent in equities.

Both funds hope to raise $4 million each at the very least, according to their prospectuses published on Fullerton's website.

They will both invest primarily in fixed income and equity funds, including exchange-traded funds (ETFs), Fullerton said in a statement last Friday.

ETFs are funds tracking the price movements of an underlying asset such as a stock market index or commodity.

They also charge management fees but these tend to be lower than those for unit trusts or mutual funds.

This fund-of-funds model effectively means that investors in Fullerton's new funds will incur management fees at multiple levels.

Both funds will be distributed exclusively by financial advisory firm Professional Investment Advisory Services. Their inception date is Thursday.

Fullerton, chaired by Neptune Orient Lines chairman Kwa Chong Seng, managed around $11 billion in assets as of Dec 31 last year.

The news of Fullerton's latest retail offering comes on the heels of similar announcements by other fund managers in Singapore.

Last Thursday, Henderson Global Partners said it was targeting retail investors in Singapore with a new fund that will invest in real estate investment trusts (Reits) globally.

Henderson Global Partners, which manages US$2.3 billion (S$2.9 billion) in property stocks, aims to raise as much as US$100 million for the Henderson Global Property Income Fund domiciled in Singapore.

It expects to raise at least US$50 million for the fund this year, a Business Times report said.

Another fund manager, Franklin Templeton, also recently launched three syariah-compliant funds that are available to retail investors.

A syariah-compliant product is one that operates in accordance with the beliefs of Islam.

For example, these funds are not allowed to invest in businesses associated with activities barred by Islam, such as gambling or alcohol.

Conventional financial services are also excluded as they go against the religion's ban on interest.

melissat@sph.com.sg


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