SINGAPORE (July 3): DBS and Schroder Investment Management (Singapore) Ltd (Schroders Singapore) on Friday announced the launch of multi-asset fund Schroder Asia More+.
The new fund, which is aimed at investors who have retired, offers them the option of decumulating assets.
According to a statement from both companies, DBS and Schroders say that the focus of investors at this stage shifts from accumulating wealth to drawing down from assets.
“Investors in a decumulation phase should stay diversified, build multiple income flows and set up their investments in a way that enables them to generate a consistent income stream,” it says.
The fund offers investors income-generating solutions and provides exposure to a range of investment growth themes across Asia. With the fund, investors will have the flexibility to choose a share class that will suit that current life stage and income needs.
The SRS-approved fund, which is tilted towards Singapore-based assets, lets investors invest in the fund from $1,000, with no lock-in period, and low management costs.
The fund is available in three share classes: accumulation share class, distribution share class, and decumulation share class, which lets investors choose how liquid they want their portfolio to be.
Investors may choose to invest in Singapore, Australian, or US dollars.
“Besides monetary distributions from government and pension schemes post-retirement, a steady source of recurring income from private savings and investments to replace income from work is of critical importance.
“The concept of decumulation is still relatively new in Singapore, and we hope that this product will get more Singaporeans to think about managing retirement savings in their twilight years,” says Lim Soon Chong, regional head of investment products & advisory at DBS Consumer Banking and Wealth Management.
“Accessible to all investors who are planning for a lifelong source of recurring income, investors can gain access to a diversified portfolio through this solution. DBS aims to create financial planning, advisory and life-time investment journeys around this investment solution, tailored to each customer’s life stage and based on his or her unique circumstances,” he adds.
“[This new product] was developed in close partnership with DBS, drawing on their research and data insights into investor appetite for income generating solutions, and tapping into our deep expertise and experience in designing and dynamically managing innovative, bespoke multi-asset solutions,” says Lily Choh, Deputy CEO, Singapore, and head of distribution, Southeast Asia at Schroders.
Shares in DBS closed 29 cents higher, or 1.4% up, at $21.57 on Friday.
