The Singapore-based bank will distribute one of the active asset manager's bond funds to Singapore and Hong Kong clients.
DBS intends to distribute a Global Corporate Bond Fund run by active asset manager Capital Group to clients in Singapore and Hong Kong, an announcement issued by the latter institution in the city-state on Tuesday indicated.
The step will allow clients in both cities to invest directly in the fund (LUX) (GCB), launched in 2018 and is an active bond fund backed by fundamental research. Currently, a principal investment officer and 16 sector analysts worldwide manage the fund. Bank clients can already invest in the asset managers's Capital Group New Economy fund, a global equity fund focusing on growth and innovation.
«High starting yields in bonds today are indicative of strong future returns. Barring an unexpected resurgence of inflation, a scenario of slow rate cuts amid a soft landing in the US economy bodes well for credit,» Hou Wey Fook, DBS's chief investment officer, indicated in the announcement.
