Temasek subsidiary to list private equity fund on ADDX's digital platform

Temasek unit Fullerton Fund Management is listing its Fullerton Optimised Alpha Fund on ADDX's digital platform. PHOTO: FULLERTON FUND MANAGEMENT

SINGAPORE (THE BUSINESS TIMES) - Private market exchange ADDX has partnered Temasek unit Fullerton Fund Management to list the latter's private equity fund of funds, the Fullerton Optimised Alpha Fund, on its digital platform.

The Fullerton Optimised Alpha Fund is a closed-end fund that is targeting annual returns of 8 per cent to 12 per cent over its fund life of seven years, ADDX said on Wednesday (May 11).

As a result of efficiencies from tokenisation, accredited individual investors on ADDX will be able to access the Fullerton fund with a minimum amount of US$10,000 (S$13,900) instead of the US$250,000 required through traditional non-tokenised channels.

A liquidity option in the form of quarterly gated redemptions is available to investors.

The fund will be invested in a portfolio of six to eight private equity and private credit funds. The fund's underlying assets will be diversified by geography - across North America, Europe and Asia - as well as by strategy - across the likes of buyout, growth, secondaries and private or distressed credit.

The Fullerton Optimised Alpha Fund will also focus on thematic sectors, such as defensive, tech-enabled, new economy and post-Covid-19 dislocation and recovery, as well as sectors aligned with environmental, social and governance factors.

From a field of more than 20,000 funds, Fullerton uses a rigorous and proprietary method of selection that focuses on blue-chip managers with a proven track record of consistent investment strategy and performance across market cycles.

ADDX chief executive Choo Oi Yee, noted that private equity has outperformed public equity on five-year, 10-year and 25-year timeframes.

Institutional investors such as private funds typically have 20 per cent to 30 per cent of their capital in private markets, she added.

"Adding a private equity allocation to one's portfolio has been demonstrated to enhance overall returns while reducing volatility," Ms Choo said.

"By bringing down the barrier to entry, ADDX is contributing to a fair and level playing field for individual investors. At a time when rising inflation is a source of anxiety worldwide, strategies that help investors to better preserve and grow their wealth are needed more than ever."

Fullerton's chief business development officer Mark Yuen added: "The partnership between Fullerton and ADDX is unique and synergistic... Through ADDX we can reach a broader base of investors to help them achieve well-diversified portfolios that can match their long-term investment objectives."

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