Temasek-backed Fullerton pares China hedge fund operations, workforce: source

Fullerton Fund Management, backed by Temasek Holdings, has sharply scaled back its China private fund operations after years of struggling to build scale, a person with direct knowledge of the matter told Reuters.

The Singapore-based firm has cut its onshore private fund team from nearly 20 people last year to fewer than five and started liquidating China-focused fund products earlier this year, the source said.

The onshore private fund unit has liquidated three of its five funds, while the remaining two hold less than 10 million yuan (S$1.8 million) in assets, official fund association records showed.

Fullerton plans to keep a small number of employees to run an outbound investment strategy under the Qualified Domestic Limited Partnership (QDLP) channel, which distributes feeder funds to local accredited investors but does not invest in China, the person added.

Bloomberg reported earlier on Friday (Dec 5) that Fullerton is winding down its China private fund businesses, including an eight-year-old hedge fund unit, citing people familiar with the matter.

Fullerton said it was unable to comment further in response to Reuters’ requests for a comment on the additional details, but earlier in the day said that China remains an important market.

“We are fully committed to maintaining our presence in China while focusing resources in areas that best support our clients and investment portfolios,” Fullerton said.

Temasek declined to comment, while Seviora, Temasek’s asset management arm overseeing Fullerton, did not immediately respond to a request for comment.

The retrenchment comes as Temasek undertakes its biggest overhaul in more than a decade, reorganising its asset management units into three entities, Temasek Global Investments, Temasek Singapore, and Temasek Partnership Solutions, as part of a strategic review. REUTERS

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