SINGAPORE (Feb 28): When it comes to robo-advisers, there are a dime a dozen out there.
Investors are spoilt for choice in deciding which platform to help them curate and manage a portfolio.
But DBS digiPortfolio, which was rolled out by DBS Bank on Feb 25, attempts to stand out from the crowd.
According to Lim Soon Chong, managing director and regional head of investment products and advisory at DBS Bank’s consumer banking and wealth management business, many of the robo-advisers out there offer passive investments, such as exchange traded funds (ETFs).
These ETFs are usually US dollar or euro-denominated products as there are few Singapore dollar-denominated ones, he says.
Hence, local investors are exposed to currency and concentration risks.
With DBS digiPortfolio, however, the platform offers a variety of active investments, including equities, bonds and active funds, and not just ETFs, says Lim.
“We believe that over time this particular approach will get alpha or outperformance versus a purely passive approach,” he says.
The set-up process is quite simple for users of DBS digiPortfolio. Investors only have to select the amount they wish to invest and state their risk appetite, following which the robo-adviser will recommend a portfolio accordingly.
These portfolios are constructed by DBS’ investment team and are rebalanced according to changes in investing strategies and market trends.
Users of DBS digiPortfolio will be notified of rebalancing adjustments made to their portfolio.
DBS digiPortfolio is currently available only to DBS wealth clients, but Lim says the robo-adviser is expected to be open to retail investors too by the end of this year.
