DBS Bank and JP Morgan Asset Management (JP Morgan AM) have debuted their global investment portfolio, which automatically calibrates its asset allocation to an individual’s life stage and retirement timeline, while also allowing investors to automate their drawdowns according to their retirement needs.
DBS Bank and JP Morgan AM said in a statement that the launch of DBS Retirement digiPortfolio follows on from a successful pilot programme towards the end of last year.
In the pilot programme, nearly half of the investors comprised customers under 40. 70% of them also opted to make recurring top-ups to their portfolios.
DBS Retirement DigiPortfolio allows investors to take more risk early on and moderate their risk when they approach retirement.
Once investors start to make withdrawals from DBS Retirement DigiPortfolio, it will continue to automate these withdrawals and be presented with a view of the longevity of these payouts.
For example, for a customer aged 30 who is due to retire much later, the portfolio would allocate 65% towards equities, 32% towards fixed income and 3% towards cash. When the customer reaches 65, his or her retirement age, the portfolio would allocate 82% towards fixed income and 15% towards equities.
DBS Retirement digiPortfolio investors also pay a flat annual management fee of 0.75%.
“DBS Retirement digiPortfolio is designed with careful risk calibration over decades in mind. This effectively breaks down big hurdles for customers who want to plan for retirement, yet find it too daunting. It also serves to remove some of the inertia we hear around retirement planning, by making it not only more accessible to all but also more affordable to start with,” said Ling Seng Chuan, head of financial planning, insurance and investment at DBS Bank.
“We are excited to partner with DBS to introduce an industry-first personalised retirement proposition for Singapore investors planning for their retirement needs. The personalised feature is what sets this retirement solution apart and brings retirees’ experience to the next level – we are proud to enable the customisation leveraging our investment insights, technology resources and model-advisory portfolio capabilities,” said Jacklyn Goh, head of Singapore intermediaries at JP Morgan Asset Management.
