DBS' barbell portfolio chalks up strong returns

Singapore

DBS Private Bank, which has advocated a "barbell'' approach to investing, said its flagship portfolio - the DBS Chief Investment Office Barbell Strategy Portfolio - has achieved a record performance year-to-date.

The portfolio recorded a return of 7 per cent between January and end- July, compared to the composite benchmark return of 2.2 per cent.

The portfolio pursues a two-pronged strategy of growth and income.

The growth component comprises exposure to secular trends such as digitalisation, e-commerce, healthcare, millennials and China equities.

The income component seeks to generate a steady income stream for downside protection. This is achieved through dividend equities, Reits and corporate bonds.

Since its launch date in August 2019, the strategy has generated returns of 14.6 per cent, compared the composite benchmark return of 8.3 per cent.

The DBS CIO Barbell Strategy Portfolio comprises over 50 securities across a range of geographies, sectors and asset classes.

Said Hou Wey Fook, chief investment officer, DBS Private Bank: "2020 has been a stark reminder for investors to be positioned for long-term resilience.

"Amid slower growth and rising bifurcation, and with the global pandemic and political tensions still on the world's radar, it is more important than ever to take a well-diversified approach that also considers post-pandemic opportunities.

"The DBS CIO Barbell Strategy Portfolio represents the bank's view of the future, and with its dual focus on growth and income, seeks to help clients navigate the road ahead by providing a resilient solution to form the bedrock of their investment portfolios."

Clients may get exposure by investing in a mixed-asset discretionary mandate. DBS also has a DBS CIO Barbell Note which references the portfolio.

DBS also launched a "Topple the Barbell Challenge", which invites clients to put the portfolio to the test and outperform over a 12-month period.

This is open to clients of DBS Private Bank and DBS TPC (Treasures Private Clients).