DBS Private Bank raises over S$1.6 billion in two products
Singapore
DBS Private Bank has raised over S$1.6 billion for two flagship products, tapping into the appetite for income and sustainable investing.
The two products are the DBS Chief Investment Office (CIO) Barbell Income Fund and the MSCI EM Asia ESG Leaders Outperformance Trade. ESG refers to investing via an environmental, social and governance lens.
The Barbell Income Fund, structured as a unit trust, attracted about S$970 million in less than six weeks between February and March this year. The ESG Outperformance Trade raised S$690 million between October and November last year.
The Barbell Income Fund is part of the bank's stable of investment products that reference the DBS CIO Barbell Strategy portfolio, which mirrors the CIO's high conviction calls. From inception on August 2019 to March 10, the portfolio has returned 26 per cent net of fees, outperforming its composite benchmark by close to 7 per cent.
The Barbell Income Fund is a multi-asset fund with a strategic asset allocation of 50 per cent in equities, 45 per cent fixed income and 5 per cent cash. It aims to distribute 3-4 per cent a year to investors at quarterly intervals. The fund aims to generate yield through dividend stocks, and also employs covered call writing on select growth stocks.The fund is only for clients of DBS Private Bank and DBS Treasures Private Client.
The ESG Outperformance Trade is a three-year outperformance warrant, designed to demonstrate that investing based on ESG principles improves a portfolio's risk/return characteristics and generates stronger returns in the long run. The 2018 Outperformance Trade raised S$95 million at launch and is due to expire in November. It has delivered an average return on investment of close to 100 per cent since launch.
Joseph Poon, group head of DBS Private Bank, said: "Our confidence in this trade was bolstered by the outperformance of the 2018 Trade, which supported our investment thesis that ESG-compliant companies do outperform in the long run."
