According to Fullerton, small- and mid-cap stocks here represent a “dynamic yet potentially under-owned segment” of the Singapore equity market. “Investors in the fund may potentially benefit from several tailwinds including a positive macroeconomic and growth outlook, a stable and supportive Singapore dollar.”
The FSGV fund will be managed by Fullerton’s equity team. This includes portfolio managers Michelle Sim and Shawn Ang, with “investment oversight” from Fullerton CIO Ken Goh.
Goh, who joined Fullerton in 2017, also manages Fullerton’s Global Absolute Alpha, Asia Focus and Asia Absolute Alpha Equities strategies. He was previously CEO of CIMB Principal Asset Management’s Singapore office. Goh worked at GIC earlier in his career.
“With our deep understanding and long-standing relationships with Singapore companies, we are committed to unlocking value through our rigorous bottom-up, research-driven investment process,” says Fullerton in an email to The Edge Singapore on Aug 21.
See also: FTSE ST Mid & Small Cap Index generates 9% total return
According to the prospectus, FSGV will invest primarily in equities and equity-related securities listed on the SGX. The investment universe may include REITs, initial public offerings (IPOs) and “pre-IPOs”.
The Edge Singapore requested more information on how the fund would offer access to pre-IPO companies. Fullerton says further details will be shared during the launch of the fund by 4Q2025.
The FSGV is an actively managed fund that benchmarks against the FTSE Straits Times All Share Total Return Index as a target to beat. The fund managers do not try to replicate the benchmark and will freely select the securities to invest in. The benchmark may be replaced with another suitable benchmark from time to time.
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FSGV may hold cash, money market funds, money market instruments and/or other liquid instruments to manage downside risks and for liquidity management purposes. The prospectus also mentions that the target allocation may vary from time to time, depending on liquidity considerations and market conditions, as deemed appropriate by the fund manager. The fund may also use financial derivative instruments (FDIs) for hedging and efficient portfolio management purposes.
According to the prospectus, it may also invest in other “authorised investments”. Fullerton is part of Seviora, an independent asset management group owned by Temasek.
Avanda Investment Management, another of the three chosen asset managers, will similarly allocate its funds only to Singapore-listed companies. Avanda co-founder Ng Kok Song told The Edge Singapore last month that the Avanda Singapore Discovery Fund will have a “strong focus” on local small- and mid-caps.
Meanwhile, fellow appointed fund manager JP Morgan Asset Management told The Edge Singapore on July 29 that its yet-to-be-named fund will have a “majority allocation” to Singapore’s small- and mid-cap stocks, alongside equities from Australia, China and India, among other markets.
Read about the full slate of EQDP announcements:
- MAS picks Avanda, Fullerton, JP Morgan under $5 bil Equity Market Development Programme
- MAS to consult on ways to enhance investor recourse
- S’pore stocks are ‘longer-term investments’, not just for ‘short-term punting’: Chee Hong Tat
Read more about the other two fund managers:
