The multi-asset Schroder Asia More+ fund includes a unique decumulation share class targeted at retiree investors.
DBS Bank on Friday announced the launch of a new fund with Schroders that offers investors an income-generating solution with exposure to a range of investment growth themes across Asia, including technology, consumption, logistics and financial services.
The fund is available in three share classes – accumulation, distribution, and decumulation – to cater for different investment objectives. The decumulation share class is designed for retirees and investors whose goals have shifted from accumulating wealth to drawing down from assets, and has an intended payout of 6.88 percent per annum, while drawing down from their capital over the long term.
«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,» Lim Soon Chong, regional head of investment products and advisory, DBS Consumer Banking and Wealth Management, said about the new fund.
Accessible Solution
According to the announcement, the fund was developed using insights gained from the Schroders Global Investor Study, which revealed that Singapore investors have rising income expectations from their investment portfolios, and that many are overly optimistic about how long their retirement savings will last.
«The embedded resilience features in this product will help it navigate through the current climate of uncertainty while generating income, through a combination of investing in new emerging growth drivers and income-generating assets,» Lily Choh, deputy CEO, Singapore, and head of distribution, Southeast Asia, Schroders, said.
Customers will be able to invest in Schroder Asia More+ from S$1,000 ($717). The dynamically managed fund has no lock-in period and low management costs, and is approved for investment using funds from the Central Provident Fund (CPF) Supplementary Retirement Scheme. Although primarily invested in Asia, it is weighted towards Singapore-based assets. Investors may choose to invest in SGD, AUD, or USD.
