Fullerton Fund Management Retracts China Private Fund Operations Amid Strategic Overhaul

Fullerton Fund Management has significantly scaled back its China private fund operations after struggling to expand. It has reduced its team dramatically and started liquidating several funds. Though winding down some operations, Fullerton reaffirms its continued commitment to maintaining its presence in China.

Fullerton Fund Management, supported by Singapore's state investor Temasek, has significantly reduced its China private fund operations. Sources revealed that the firm has downsized its onshore team from about 20 people to less than five over the past year, and has begun liquidating its China-focused fund products.

The company has already liquidated three of its five onshore private funds, with the remaining funds holding less than 10 million yuan in assets, according to official fund records. Fullerton intends to retain a small team to manage an outbound investment strategy under the Qualified Domestic Limited Partnership channel, focusing on distributing feeder funds to local investors without investing in China itself.

The retraction comes amidst Temasek's largest restructuring in a decade, reorganizing its asset management operations into three units. Despite reducing its operations, Fullerton expressed its commitment to the China market, attributing the changes to resource optimization for better client and portfolio support. Temasek and Seviora, which oversees Fullerton, did not provide further comments.