Retail investors in Singapore can now invest in new DBS CIO Barbell Income Fund
Singapore, 20 Apr 2022 - Retail investors in Singapore can now buy into the new
Amundi Asia Funds - CIO Barbell Income Fund
(the “Fund”), which adopts the
DBS CIO Barbell Strategy
of investing in both income-generating investments
[1]
and growth stocks aligned with long-term secular themes. Previously only available to accredited investors, retail investors can now benefit from the stability of income-generating assets, while accessing the best global growth opportunities.
The Fund is unique to DBS as it mirrors the
DBS Chief Investment Office (CIO)
’s high-conviction investment calls. Investors will just need to invest a minimum of SGD1,000, pay an initial sales charge of 0.82%
[2]
, and are not subjected to a lock-in investing period. Buying into this Fund will enable customers to:
Benefit from greater diversification
: By taking a global, multi-asset approach, the Fund is able to capitalise on best-in-class companies across different sectors and geographies. It also offers greater diversification benefits for retail investors seeking sustainable cash flow while still participating in secular growth opportunities around the world, which is especially key amid geopolitical instability and rising inflation.
Buy right with the buy-write strategy
: In addition to traditional credit and dividend strategies, the Fund will utilise a buy-write strategy (also known as covered call)
[3]
to enhance income generation. While many growth stocks pay little to no dividends, the Fund is able to generate “income” from these holdings through the buy-write strategy by selling call options and collecting option premiums. This also has the added benefit of mitigating downside risks during periods of market volatility.
Engage directly with the bank’s wealth management experts
: The Fund taps on the DBS CIO’s research, portfolio, wealth and risk management expertise.
Said Hou Wey Fook, Chief Investment Officer at DBS Bank: “Uncertainty looks set to remain in the foreseeable future, as the world continues to grapple with a myriad of challenges including the pandemic, geopolitical tensions and inflationary pressures, among others. Rising inflation and low rates will diminish consumer spending power in the years to come, which reinforces the need for customers to actively invest and grow their wealth. When investors start investing isn’t as important as how long they stay invested, and there’s no time like the present. In this new normal, it is important that they adopt a multi-asset, Barbell portfolio approach with underlying best-in-class companies.
Our first Barbell fund was rolled out to wealth clients in August 2019 and has returned over 8% on an annualised basis. Subsequently, this strategy has won our clients’ confidence with assets under management growing to SGD 3 billion as at end March 2022. The DBS CIO Barbell Income Fund would employ this similar strategy with income generation as its objective.”
The CIO Barbell Income Fund is available for DBS/POSB retail and DBS Treasures customers to purchase via internet banking and soon through the DBS/POSB digibank app. Customers are advised to first make use of the digital investment advisory feature on the
DBS NAV Planner
tool to determine their suitability based on individualised investment risk profiles. Alternatively, they may approach a DBS wealth planning manager to find out more.
“The retail launch of the DBS CIO Barbell Income Fund marks another milestone achievement in our ongoing efforts to democratise access to wealth management services. We strongly believe in enabling more retail investors to participate in the markets to grow their money, which will help prepare them to retire well even in the face of rising costs and inflation in the near term,” said Evy Wee, Head of Financial Planning, Investments and Insurance Solutions, DBS Bank. “With this new Fund, we’ve provided our retail customers with yet another innovative investment solution that is developed in-house – the first being DBS digiPortfolio. Together, we see them as complementary building blocks that make up an investor’s core portfolio, which are watched over by our experienced investment specialists and adjusted to remain optimal in changing market conditions.”
The CIO Barbell Income Fund is managed by Amundi with DBS CIO as the investment advisor, and will be exclusively distributed by DBS. Albert Tse, Amundi’s CEO for South Asia said, “This offering plays a part in meeting the needs of investors who are not only looking for sources of income, but also capturing best growth opportunities globally. The collaboration between DBS Bank and Amundi signifies a mutual meeting of the minds and an innovative spirit in developing solutions relevant in today’s market environment, and addresses the needs of DBS Bank’s clients in Singapore and other parts of Asia.”
DBS is committed to helping one million customers – roughly a fifth of Singapore’s residents – get insured and invested by 2023. To date, some 2.6 million customers have engaged with the bank’s AI-powered financial and retirement planning tool DBS NAV Planner. Users who are guided by recommendations provided by the tool continue to fare better than non- or dormant users. On average, customers using DBS NAV Planner have a higher AUM (incl. deposit savings) of at least 50% more, and they invest at least four times more in comparison.
For more information on the CIO Barbell Income Fund, click
here
.
[1]
Income-generating investments, such as bonds, REITs, and dividend stocks
[2]
When purchased online via internet banking or on DBS/POSB digibank (coming soon)
[3]
Adopting the Buy-Write investment strategy
[END]
About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “
World’s Best Bank
” by Euromoney, “
Global Bank of the Year
” by The Banker and “
Best Bank in the World
” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “
World’s Best Digital Bank
” by Euromoney and the world’s “
Most Innovative in Digital Banking
” by The Banker. In addition, DBS has been accorded the “
Safest Bank in Asia
” award by Global Finance for 13 consecutive years from 2009 to 2021.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit
www.dbs.com
.
DBS Bank Ltd | 12 Marina Boulevard, DBS Asia Central @ Marina Bay Financial Centre Tower 3,
Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
