DBS Private Bank has reported that its client assets under management (AUM) has more than doubled to $10 billion in the past year.
This comes as the bank sees surging client demand for its in-house managed investment products.
In addition, the bank recently launched the DBS I.D.E.A. Fund and the DBS ESG Focus Note, which raised a total of $550 million since its rollout in July.
The I.D.E.A. Fund is a global portfolio that comprises some 50 stocks. The fund identifies companies that are well-positioned to ride the disruption wave. It is also designed to thrive in a world that’s fast transitioning into a digital economy.
The fund leverages on the chief investment office’s (CIO) proprietary I.D.E.A. framework for selecting stocks. I.D.E.A. stands for innovators, disruptors, enablers and adapters.
See also: DBS Private Bank launches trust solution for cryptocurrencies
The DBS ESG Focus Note bridges the ongoing hunt for yield and clients’ growing awareness and appreciation of ESG investing by addressing the need for income generation in a sustainable and responsible manner.
The DBS ESG Focus Note invests in a diversified fixed income portfolio comprising at least 80 bonds that are issued by global companies with good ESG ratings, and from across a range of industries.
Its objective is to harness incremental yields from these bonds and provide quarterly distributions to investors.
“We have been advocating our ‘Barbell’ and ‘I.D.E.A.’ investment strategies to our clients for some time, as a means to identify the potential winners in today’s fast-changing world. Our views have earned their confidence, which led us to take things further and create bespoke portfolio solutions that employ these strategies, so our clients can easily and conveniently invest in them,” says Hou Wey Fook, chief investment officer at DBS Bank.
“The aim of developing in-house managed products is to complement the diligently selected suite of third-party mutual funds on our platform, ultimately availing a more holistic offering for our clients,” he adds.
“Since 2018, we have successfully launched various ESG outperformance structures in the equity space, giving clients exposure to companies that score well based on MSCI ESG scoring methodology. We foresee continued strong interest as more clients come to appreciate the benefits of ESG investing, and have thus created the DBS ESG Focus note as a means for them to extend their participation in sustainable investments to the fixed income part of their portfolios,” says Audra Seah, head of investment advisory and capital market products at DBS Private Bank.
As at 11.05am, shares in DBS are trading 9 cents higher or 0.3% up at $30.16.
Photo: Bloomberg
