Fund Rationale: Fullerton Short Term Interest Rate Fund

Fullerton Short Term Interest Rate Fund (the “Fund”)
SGD Retail Class C Accumulation Shares (ISIN: SG9999006225)
Fund Manager Page
Daily Price & Charts

Endowus has selected the Fullerton Short Term Interest Rate Fund for its ability to generate attractive risk-adjusted return through a relatively safe portfolio of low duration and investment grade credit.


Key Information

Fund Objective: Aims to achieve medium-term capital appreciation. The investments of the Fund will be broadly diversified with no specific industry or sectoral emphasis.

Suitability: Investors who are seeking medium-term capital appreciation, and are looking for a broadly diversified fund which invests in fixed income securities and money market instruments with no specific industry or sectoral emphasis.

* Total Fund-level Fees include fund management fee of 0.50%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 9 September 2004
Share Class Inception: 25 September 2009
Benchmark: 3-Month Singapore Interbank Bid Rate  (Endowus typically uses the Bloomberg Barclays Global Aggregate fixed income index as a representative index to benchmark performance over the long term.)  

Fund AUM: SGD 1.4bn
Source: MorningStar as of 5 April 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

Sector Allocation:

Source: MorningStar as of 30 September 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the Fullerton Short Term Interest Rate Fund for its ability to generate attractive risk-adjusted returns. The Fund keeps a low duration risk and only invests in investment grade credit, and the Fund managers have some flexibility to increase or decrease the duration and adjust allocation between Asian USD credit and SGD credit where they see suitable opportunities. 

In March 2020, the Fund experienced the largest drawdown since its inception with a peak to trough magnitude of -1.9% when the credit market sold off; nevertheless, it was able to recover in three months and capture the rebound in the credit market. It is an Luxembourg-domiciled UCITS fund which is more tax-efficient, and it is denominated in Singapore dollars to make it an FX-efficient portfolio for Singapore-based investors, matching your assets with your future liabilities and thereby removing unnecessary FX risk and cost.

Updated by Endowus: April 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.