DBS extends barbell portfolio to retail investors in Singapore

DBS is offering retail investors in Singapore to buy into a new ready-made and professionally-managed portfolio, modelled after its private banking unit’s flagship “barbell” product.

The new Amundi Asia Funds - CIO Barbell Income Fund follows the DBS Chief Investment Office (CIO) Barbell strategy of investing in assets at both ends of the risk spectrum to balance risk and reward, the bank said on Wednesday (Apr 20).

Previously only available to accredited investors, DBS expects extending the fund to retail investors will boost its efforts to democratise access to wealth management products and services.

DBS chief investment officer Hou Wey Fook said: “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.”

Interested investors will need to invest a minimum of S$1,000, pay an initial sales charge of 0.82 per cent, and are not subjected to a lock-in investing period.

DBS expects investors can benefit from the fund’s global, multi-asset approach, adding that seeking global growth opportunities is key amid geopolitical instability and rising inflation.

The fund’s buy-write strategy of selling call options and collecting option premiums also generates income and mitigates downside risks during periods of market volatility.

The fund is managed by Amundi and exclusively distributed by DBS, with DBS CIO as the investment adviser.

Amundi’s chief executive for South Asia Albert Tse expects the offering meets the needs of DBS clients in Singapore and other parts of Asia, as well as of investors who are looking for sources of income and growth opportunities globally.

DBS Treasures and DBS and POSB retail customers can purchase the fund via Internet banking, while the digibank app will allow purchases soon.

DBS said customers are advised to determine their suitability based on individualised investment risk profiles through the DBS NAV Planner tool or a DBS wealth planning manager.