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Money Management

Singapore’s NTUC Income eyes Fullerton as partner in managing S$23 billion portfolio

NTUC Income is seeking regulatory approval to appoint Fullerton Fund Management, the Asia-focused asset management affiliate of Temasek Holdings, as manager of the Singapore-based insurance cooperative’s S$23 billion ($17.1 billion) investment portfolio, according to a joint announcement by NTUC and Fullerton Thursday.

A proposed strategic partnership would see NTUC Income take a “significant minority stake” in Fullerton Fund Management. Temasek, a Singapore government investment arm, will remain Fullerton’s majority shareholder.

A spokeswoman for the NTUC-Fullerton deal said until regulators give their approval, further details — such as the size of NTUC’s stake in Fullerton or the consideration to be paid — won’t be released.

The deal would make Fullerton, which reported S$17.3 billion in assets under management as of Sept. 30, one of Singapore’s largest asset management companies, with more than S$40 billion in AUM, the news release said.

To ensure continuity in managing NTUC Income’s assets, “relevant (NTUC) Income fund management personnel will be transferred to Fullerton,” the news release said.

The spokeswoman declined to provide further details, including whether NTUC Income would retain any in-house investment capabilities following the tie-up with Fullerton.

Png Chin Yee, head, financial services at Temasek, said in the news release the proposed partnership “will further strengthen Fullerton’s position as an Asian and emerging market specialist, and deepen the capabilities that both organizations (Fullerton and NTUC Income) have to service their client base.”