Temasek subsidiary Fullerton Fund Management to list private equity fund on ADDX’s digital platform
Uma Devi
PRIVATE market exchange ADDX has partnered with 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 to 12 per cent over its fund life of 7 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, 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 6 to 8 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, post-Covid-19 dislocation and recovery as well as sectors aligned with environmental, social and governance (ESG) factors.
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From a field of over 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.
Choo Oi Yee, chief executive of ADDX, noted that private equity has outperformed public equity on 5-year, 10-year and 25-year timeframes. Institutional investors such as private funds typically have 20 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,” 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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