Amundi has filed an application with the Monetary Authority of Singapore (MAS) to launch the Amundi-OCBC Momentum Fund, according to the regulator’s website.
The Amundi-OCBC Momentum Fund is the first co-branded tie-up between Amundi and OCBC, a source familiar with the matter told FSA.
The fund is a mixed-asset product that invests in global bonds and equity ETFs, according to the fund’s prospectus. It explained that during the first three full calendar months after inception, the fund will first primarily invest in global bonds. After that, it will allocate a certain percentage of its assets at the end of each calendar month to equity ETFs over a 12-month period, to reach a strategic allocation of around 50% in equity ETFs and 50% in bonds.
Amundi and OCBC declined to comment whether the fund will be exclusively distributed by the bank.
OCBC has been distributing four products from Amundi, including the Bonus Builder Fund, the Global Luxury & Lifestyle Fund, the Oasis Middle East & North Africa Fund and the Singapore Dividend Growth Fund, according to the bank’s website.
In a similar move, Schroders in Singapore tied up with DBS to co-launch the Schroder Asia More+ fund, a multi-asset product that offers investors a solution that generates income stream and provides exposure to a range of investment growth themes across Asia, including technology, consumption, logistics and financial services. The fund is managed by Schroders and exclusively distributed by DBS.
Other asset managers are also expected to launch multi-asset products in Singapore, including Lion Global Investors and Fullerton Fund Management. The products are still waiting for the regulator’s approval, according to MAS records.
In Asia, mixed-asset products have become among the most sought-after products by high net worth individuals (HNWIs), with 67.3% of asset managers surveyed saying it is the most in-demand asset class in the region, according to a recent report published by Boston-based research firm Cerulli Associates.
“Multi-asset allocation strategies are becoming increasingly relevant amid the uncertain economic climate caused by the coronavirus pandemic, because such strategies benefit from a mix of assets with low correlation, which may include alternatives such as hedge funds and real estate,” Cerulli said.