Finance

DBS, Schroders launch multi-asset fund for retirement income planning

Fri, Jul 03, 2020 – 12:42 PM

DBS and Schroder Investment Management Singapore (Schroders Singapore) on Friday announced the launch of a multi-asset fund for retirement income planning, named Schroder Asia More+.

It will be managed by Schroders Singapore and exclusively distributed by DBS, the companies said in a joint press statement.

The fund offers exposure to a range of investment growth themes across Asia, including technology, consumption, logistics and financial services. It is tilted towards Singapore-based assets, "enabling investors to tap into the long-term growth potential of Singapore", they said.

Investors can choose from three share classes with different payout features to suit their life stage and income needs.

The distribution class offers intended payouts of 5 per cent per annum, while the accumulation class reinvests all potential coupons, dividends and capital gains back into the fund.

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Meanwhile, the decumulation class is targeted at investors who are retired. The focus of these investors shifts from accumulating wealth to drawing down from assets, the companies said.

"With intended payouts of 6.88 per cent per annum, investors can expect higher payouts from their retirement investments, while drawing down from their capital over the long term. This is designed for retirees who may be spending longer in retirement and desire an income solution that will support their needs and wants," they added.

The companies said investors in a decumulation phase should stay diversified, build multiple income flows and set up their investments in a way that enables them to generate a consistent income stream.

The fund "provides a simple and affordable way to achieve these aims, empowering Singaporeans, who are living longer, to better protect themselves from outliving their savings during retirement", the companies said.

Lim Soon Chong, regional head of investment products & advisory at DBS consumer banking and wealth management, said the concept of decumulation was "still relatively new" in Singapore, and the lender hopes the fund would "get more Singaporeans to think about managing retirement savings in their twilight years".

"A typical Singaporean can expect to live around 20 years in retirement. Besides monetary distributions from government and pension schemes post-retirement, a steady source of recurring income from private savings and investments to replace income from work is of critical importance," he added.

Lily Choh, Schroders Singapore deputy chief executive, said the company's Global Investor Study last year rRead More – Source