Global markets have turned shaky again.
Since the US-Israeli strikes on Iran began on 28 February 2026, global stocks have fallen around 5 percent as of 18 March1, while oil prices jumped from about US$70 to above US$1102 a barrel on fears of supply disruption through the Strait of Hormuz.
At the same time, borrowing costs have risen and the US dollar has strengthened, creating a tougher backdrop for risk assets.
For Singapore investors, the key question is whether your portfolio can withstand short-term volatility while staying exposed to the long-term themes that could deliver growth over the next decade.
What is the Fullerton Lux Funds – Global Absolute Alpha?
The Fullerton Lux Funds – Global Absolute Alpha aims to deliver positive long-term returns through a focused portfolio of high-conviction global stocks.
Unlike a broad index fund that holds hundreds of companies, this is an actively managed strategy with a more selective portfolio holdings.
Each holding reflects a strong investment view from Fullerton’s investment team. The fund may also use cash and derivatives tactically to manage market exposure during more volatile periods.
Since its launch in February 2021, the fund has delivered an annualised return of 12.42 percent per annum (on a bid-bid basis) to end February 2026.
Fullerton Lux Funds – Global Absolute Alpha – Class A (SGD) Acc
Source: Fullerton Fund Management Company Ltd. Returns of more than 1 year are annualised. Returns are calculated on a single pricing basis in SGD with net dividends and distributions (if any) reinvested. Offer-to-bid returns include an assumed preliminary charge of 5% which may or may not be charged to investors. Past performance is not indicative of future returns.
Past performance is not necessarily indicative of future performance. *Performance period was from 11 Feb 2021 to 28 Feb 2026.
At the heart of the strategy is a focus on several structural trends that the team believes could play out over many years
What megatrends is the fund investing in?
(1) Artificial intelligence-led growth and the wider ecosystem
AI is becoming a much bigger part of how companies operate, and the fund is investing across the broader AI value chain, from models and chips to robotics and automation. Alphabet Inc is the fund’s largest holding as of Feb 2026, while Information Technology is its biggest sector exposure at 26 percent.
Source: Fullerton Fund Management Company Ltd. Data as of 28 February 2026
(2) Manufacturing prowess
Governments are investing more to rebuild manufacturing capacity at home, whether in the US, Europe, or China. This is creating a longer-term spending cycle for companies involved in building, powering, and supplying new factories. Caterpillar* is one example of a holding linked to this theme, while Industrials as a sector (on aggregate) makes up 16.4 percent of the portfolio.
(*Reference to specific stocks are for illustration purpose only and does not represent Fullerton’s current view of the security or constitute any recommendation).
(3) Policy-driven winners
Government policy has become a key driver of earnings for selected companies. The fund sees opportunities in areas supported by expanded fiscal stimulus in Europe, value-up programs in Korea and Singapore, and technology investments in China (aligned with the nation’s policy blueprint and self-sufficiency goal). These policy priority initiatives are translating into real spending.
Key risks to be aware of
The Fullerton Lux Funds – Global Absolute Alpha invests in global equities, so the value of the fund can rise or fall, and your principal is not guaranteed.
As a high-conviction fund, individual stocks can potentially have a larger impact on returns. The fund also invests globally, which means currency movements may affect performance. And like all equity funds, it can be volatile, especially during periods of market stress.
While the fund may use cash and derivatives tactically to manage exposure, this does not remove investment risk.
Learn more about the Fullerton Lux Funds – Global Absolute Alpha
With global markets turning more volatile, it may be a good time to review whether your portfolio is positioned for both resilience and long-term growth.
The Fullerton Lux Funds – Global Absolute Alpha offers equity exposure to long-term themes such as frontier technology, including AI, manufacturing prowess, as well as government policy beneficiaries.
The fund is actively managed with a more selective portfolio, with each holding reflecting a strong investment view from Fullerton’s investment team.
Learn more about the Fullerton Lux Funds – Global Absolute Alpha here.
1Source: Factset, based on MSCI ACWI, in USD terms
2Source: Factset, based on Crude Oil Brent Global Spot prices
Important Information:
This publication is for information only and your specific investment objectives, financial situation and needs are not considered here. The value of units in the Fund and any accruing income from the units may fall or rise. Any past performance, prediction or forecast is not indicative of future or likely performance. Any past payout yields and payments are not indicative of future payout yields and payments. Distributions (if any) may be declared at the absolute discretion of Fullerton Fund Management Company Ltd (UEN: 200312672W) (“Fullerton”) and are not guaranteed. Distribution may be declared out of income and/or capital of the Fund, in accordance with the prospectus. Where distributions (if any) are declared in accordance with the prospectus, this may result in an immediate reduction of the net asset value per unit in the Fund. Applications must be made on the application form accompanying the prospectus, which can be obtained from Fullerton or its approved distributors. You should read the prospectus and seek advice from a financial adviser before investing. If you choose not to seek advice, you should consider whether the Fund is suitable for you. The Fund may use or invest in financial derivative instruments. Please refer to the prospectus of the Fund for more information.
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