Retail investors in Singapore can now buy the Amundi Asia Funds – CIO Barbell Income Fund, which adopts a strategy that was previously only available to accredited investors.
It is managed by French asset manager Amundi and exclusively distributed by DBS, according to the two companies.
“The retail launch of the DBS CIO Barbell Income Fund marks another important step in our ongoing efforts to democratize access to wealth management services,” said Evy Wee, Head of Financial Planning, Investments and Wealth Management Solutions. insurance, DBS Bank.
In addition to investing in dividend-paying stocks and corporate bonds, the multi-asset fund also uses a “buy-sell” strategy, also known as a covered call, to enhance income generation.
To compensate for the low or no dividends of many growth stocks, the fund simultaneously buys the stocks and sells call options to collect the option premiums.
Nearly 60% of assets under management are allocated to equities, 32.9% of assets are invested in bonds and the rest of the allocation is in cash.
Broken down by geography, most assets are invested in the United States (36.6%), followed by China (13.5%) and the United Kingdom (7.5%).
Investors will be required to invest a minimum of S$1,000, pay an upfront sales charge of 0.82% and will not be subject to a locked-in investment period, according to the announcement.
Management fees are capped and currently stand at 1.25% per annum.
DBS and POSB and DBS Treasures retail customers can purchase the fund through online banking, and it will soon be available for purchase through the digibank DBS/POSB app.
Clients are advised to use the digital investment advice function of the DBS NAV Planner tool to determine their suitability based on individualized investment risk profiles or contact a wealth planning manager before investing in the bottom.
Along with the new fund, the Singaporean bank has also introduced the digiportfolio, a ready-to-use investment portfolio combining human expertise and robot-technology.
Investors can choose between the Asia Portfolio and the Global Portfolio, which invest in Singapore-listed ETFs and UK-listed ETFs respectively.