DBS to roll out ready-made portfolio for those with S$1,000 or more to invest

SINGAPORE — By the end of this year, all DBS customers with at least S$1,000 to invest can have their funds managed by what is now available to the bank's Treasures members, who have deposits or investments of at least S$350,000.

DBS' new digital platform, DigiPortfolio, automates investment processes and generates a diversified portfolio for its clients.

With three options for risk levels, DigiPortfolio allows investors to vary the proportion of equity, fixed income and cash invested into unit trusts selected by the bank's investment team.

This could make it easier for first-time investors, said Mr Lim Soon Chong, the regional head of investment products and advisory at DBS consumer banking group and wealth management.

The bank received feedback from customers that “there is not enough time and there is not enough information for them to feel that they are empowered enough to invest”, he said.

Other factors include high entry fees and the inertia to try investing.

DBS’ customer data showed that one in 10 Singaporeans made an investment transaction in the past 12 months.

Among affluent customers, such as Priority Banking customers, the proportion is nearly double.

The relatively low rates are an “enigma”, said Mr Lim.

The DigiPortfolio service was launched on Monday (Feb 25) for Treasures members.

The platform offers two options — Global Portfolio, which costs S$1,000 to start, and Global Portfolio Plus, which costs 10 times as much to start.

Global Portfolio is meant for diversified exposure to global markets and is reviewed quarterly and rebalanced to align with market trends, said DBS.

Global Portfolio Plus features active adjustments to capitalise on market movements.

DigiPortfolio’s automated process allows investors to buy their portfolios with just a few clicks of the mouse and charges a single management fee.

The management fee for the Global Portfolio plan is 0.75 per cent of the portfolio value each year. For Global Portfolio Plus, fees are tiered at 0.75 to 0.85 per cent, depending on the portfolio value.

There is no lock-in period, so investors are free to withdraw their money whenever they want.

DBS said that its service is different from other robo-advisers in the market, as its investment strategy is not “entirely passive and automated”.