DBS Asset Management Ltd (DBSAM) has announced the launch of the DBS Asia Asset Allocator Fund. The fund is exclusive to DBS’ customers and offers investors a dynamic, broad, multi-asset class approach to long-term wealth management with an Asian focus. This is in line with DBS Bank Ltd’s (DBS) strategy to bring leading Asian wealth management solutions to its customers. The initial offer period of the DBS Asia Asset Allocator Fund is from May 11 to June 21, 2011.
The DBS Asia Asset Allocator Fund is a key initiative resulting from the collaboration between DBSAM, DBS Bank and Nikko Asset Management Co Ltd (Nikko AM) in bringing long-term asset management solutions to the region’s rising affluent. The collaboration will see the fund managed by DBSAM (the managers), who will in turn be advised by:
i) DBS, as asset allocation investment adviser specifically on the fund’s asset allocation on a quarterly basis.
ii) ii) Nikko Asset Management Singapore Limited (NAMS), a subsidiary of Tokyo-based Nikko AM, as investment advisor on stock selection for Asian equities and where the fund invests in unit trusts managed by third-party fund managers, NAMS will assist DBSAM in the selection and review of these funds and third-party fund managers.
Many investors lack the time, resources and information to monitor markets closely or diversify effectively. The DBS Asia Asset Allocator Fund is specially tailored for investors who seek to address these challenges via medium- to long-term capital appreciation and risk-adjusted absolute returns through active asset allocation.
Deborah Ho, chief executive officer of DBSAM, said: “We are delighted to team up with DBS and Nikko AM to launch a fund that is in alignment with our strategy to build a top-notch wealth management franchise for Asian-focused investors. Asia’s growing affluent are increasingly demanding well-rounded solutions that address ever changing market conditions across market cycles.”
She added: “The DBS Asia Asset Allocator Fund will tap into global investment opportunities while having up to half of its allocation in Asia on the premise that this region has led the global economic recovery, with its strong economic fundamentals.”
Long-term wealth accumulation requires the discipline of staying invested in the markets long enough to benefit from the uptrend. Diversification across asset classes and geographies enhances returns at lower volatility over the long term. The DBS Asia Asset Allocator Fund’s broad approach supplements diversification with dynamic asset allocation to manage the cycles – helping investors manage downside risk as well as capitalising on opportunities in good markets over the medium- to long-term.
Lim Say Boon, chief investment officer at DBS, said: “DBS seeks to build long-term wealth for our clients by investing in the best of the world’s wealth creation opportunities. We recognise that with strong growth in Asia, some of the most attractive of these opportunities are to be found in our part of the world. Wealth management is about maintaining a consistent and diversified presence in global asset markets. Asia-centric wealth management is about putting a bigger part of portfolios into regional markets consistent with clients’ understanding and comfort with their home markets.”
The DBS Asia Asset Allocator Fund will invest in equities, bonds, alternative asset classes and cash, cash equivalents and/or money market funds. During times of market stress, the DBS Asia Asset Allocator Fund has the flexibility to hold higher levels of cash or instruments that DBSAM deems to be cash-like in nature.
The minimum initial investment for the fund is S$50,000 (US$40,437). The DBS Asia Asset Allocator Fund is available at DBS Treasures as well as selected DBS and POSB branches in Singapore.
