Fullerton Fund Management, the Singapore-based asset manager backed by state investor Temasek, has sharply reduced its onshore China private fund operations, according to a report by Reuters, marking a retrenchment after years of struggling to achieve scale in the market.

The firm has cut its China-based private fund team from nearly 20 staff last year to fewer than five, and has begun liquidating its China-focused hedge fund and private fund products. Fund association records show that three of its five onshore funds have already been closed, while the remaining two hold less than RMB10m ($1.41m) in assets.

Fullerton plans to maintain a small team to manage outbound investment strategies under the Qualified Domestic Limited Partnership (QDLP) framework, distributing feeder funds to local accredited investors without directly investing in China.

The retrenchment comes amid Temasek’s broader strategic overhaul of its asset management units—the largest in over a decade—reorganising operations into Temasek Global Investments, Temasek Singapore, and Temasek Partnership Solutions.

Fullerton emphasised that China remains an important market and that the firm is “fully committed to maintaining our presence in China while focusing resources in areas that best support our clients and investment portfolios.” Temasek and its asset management arm, Seviora, declined to comment.