Fullerton Short Term Interest Rate Fund

Fund Description

The investment objective of the FSTIR Fund is to achieve medium-term capital appreciation for investors. The investments of the FSTIR Fund will be broadly diversified with no specific industry or sectoral emphasis. The investment strategy of FSTIR shall be to maximise returns via investment in Singapore Dollar and foreign currency denominated fixed income securities, of up to 5 years tenure, and money market instruments. The foreign currency denominated fixed income securities will be fully hedged back to the Singapore Dollar except for a 1% frictional currency limit, and will have investment-grade credit ratings of at least BBB- by Standard and Poor’s or Baa3 by Moody’s (or their respective equivalents). The investments are to be made after analysing historic and expected interest rate movements. FSTIR may also invest in FDIs for the purposes of hedging and/or efficient portfolio management (namely, managing risks) without leveraging the portfolio.

Key Features

• 1

  An attractive, low risk alternative to cash

  As central banks pivot towards rate cuts, cash rates and SGD T-bills are expected to decline. This could mean lower returns for investors relying on cash-like products. To ensure your money continues to work hard for you, consider allocating to the Fullerton Short Term Interest Rate Fund. The fund invests in high-quality, short-dated credits, offering a more attractive option by providing the potential for better returns without significant compromise on quality

• 2

  No currency risks for SGD-based investors

  The Fund invests in a combination of SGD denominated credits and foreign denominated credit hedged back to SGD. This strategic approach ensures consistent returns while minimising currency risk, making it a trusted choice for SGD-based investors seeking stability and steady returns.

   

• 3

  Daily Liquidity

  The Fullerton Short Term Interest Rate Fund allows for daily redemption where proceeds will normally be returned within 7 business days