KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaways
Fullerton is winding down its China hedge fund and private fund units, cutting most local staff.
The move comes amid Temasek’s broader restructuring and weak progress by foreign managers in China’s hedge fund market.
High competition from domestic firms and limited foreign brand recognition have hindered growth.
Fullerton’s two Chinese private fund units together manage less than 1.5 billion yuan.
Several global firms, including BEA Union and Eastspring, have also scaled back in China in recent years.
Temasek is consolidating subsidiaries Seviora and Pavilion Capital under a new organisational structure starting April 1.
Despite restructuring, Fullerton says China remains an important market.
Fullerton Fund Management Co, owned by Singapore’s Temasek Holdings, is winding down its China private fund operations — including its eight-year-old onshore hedge fund arm — amid increasingly difficult conditions for global asset managers in the market, according to people familiar with the matter.
Most of the operations at Fullerton’s Shanghai hedge fund unit and a separate private fund entity have been closed, with the majority of onshore employees laid off, the sources said. Fullerton confirmed it plans to keep a presence in China but said it is reallocating resources to areas that better support clients and portfolios.
“China remains an important market for Fullerton,” the firm said in an emailed statement. Temasek declined to comment, while Seviora Group — Temasek’s asset management platform — did not immediately respond.
The retrenchment comes as Temasek undergoes one of its largest organisational restructurings in years. Global managers, with the exception of top names like Bridgewater Associates and Two Sigma, have struggled to gain traction in China’s roughly trillion-yuan (US$990 billion) hedge fund market due to fierce competition from entrenched domestic firms and limited brand recognition among wealthy local clients.
Fullerton’s onshore hedge fund entity, registered in 2017, manages less than 500 million yuan and employs five people, according to the Asset Management Association of China (AMAC). A second private fund business registered in 2021 oversees 500 million to 1 billion yuan.
Fullerton joins a growing list of foreign investors scaling back Chinese hedge fund operations. BEA Union Investment closed its Shenzhen unit in March, while Eastspring Investments and Barings reduced headcount in 2023.
Temasek is merging subsidiaries Seviora and Pavilion Capital as part of a new structure that will consolidate its asset management activities into three key entities. The realignment begins April 1, with a strategic review of Temasek’s asset managers already underway.
Despite the retrenchment, Fullerton struck an optimistic tone earlier this year. In July, its hedge fund unit wrote on WeChat that China’s stock market remained appealing due to improving economic conditions, policy support and attractive valuations.
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