Fullerton Lux Funds – Asian Short Duration Bonds invests primarily in dollar-denominated investment grade fixed income securities, while the manager also has the flexibility to invest up to 30% of the portfolio in noninvestment grade bonds in order to enhance the fund’s yield.
Fullerton Fund Management began as a unit of Singapore state investor Temasek Holdings in 1989 before becoming independent in 2003.
Investors can invest in either Singapore dollars or US dollars. Bank Julius Baer is the exclusive private banking distributor of the fund.
Patrick Yeo, head of fixed income said, “Given the improving economic conditions in the US, we believe that investors are beginning to look ahead to a time when the US Federal Reserve will begin to normalise monetary policy."
“US Treasury bonds have already started to factor in the prospect of higher interest rates. Short-duration bonds are less vulnerable to rising interest rates, allowing investors to benefit from income payouts with measured risk,” he said.