Schroders has lodged an application with the Monetary Authority of Singapore to launch the Asia More+ fund.
The roll out of the fund is still subject to regulatory approval from the MAS, according to the records from the regulator.
The Schroder Asia More+ fund is a Singapore-domiciled mixed-asset product that will primarily invest in Asia equities, including real estate investment funds (REITs) and Asia fixed income securities, according to the fund’s prospectus. The product also aims to provide income. Depending on which share class, distributions are about 5%-6.88% per annum.
The firm already has other Asia-focused mixed-asset products in the region that also provide income to investors. These include the Singapore-domiciled Schroder Asian Income Fund and the Hong Kong-domiciled Asian Asset Income Fund. Both are managed by the firm’s Asia multi-asset team led by Patrick Brenner, according to their fund factsheets.
Both funds have sizable assets, with the Singapore unit trust having S$5.54bn ($3.89bn) in assets, while the Hong Kong unit trust with HK$33.5bn ($4.32bn), according to data from FE Fundinfo.
FSA sought more information from Schroders, but the firm was unable to provide additional details about the new fund given that it is still waiting for regulatory approval from the MAS, according to a Schroders spokeswoman.
What makes the new fund different from the firm’s existing Asia-focused multi-asset offerings is that it has the flexibility to invest in securities outside of the region. According to its prospectus, the Asia More+ strategy may seek exposure outside of Asia.
It also has the option to invest in commodities-related asset classes, including energy, materials and agricultural commodities indirectly through exchange-traded funds (ETFs) or similar instruments for additional diversification.
In addition, the fund also has the option to invest in its other in-house funds. It may allocate 30% or more of its assets to the Schroders ISF Asia Pacific ex-Japan Equity Fund, the ISF Asian Credit Opportunities Fund and the Singapore Fixed Income Fund, according to the prospectus.
Mixed-asset trend
Other fund managers in the past year have also launched multi-asset portfolios in Singapore.
In February, Allianz Global Investors also lodged an application with the MAS to roll out the Allianz SGD Income Plus Fund, which invests in fixed income securities and Reits.
Aviva Investors in August launched the Sustainable Income and Growth Fund, which aims to earn income, targeted at 5% annually. Fullerton Fund Management also rolled out three mixed-asset products in May.
Since the beginning of 2019, at least seven mixed-asset products have been launched in Singapore, according to data from FE Fundinfo.
Robo-advisors in Singapore have also joined the trend. Last year, Syfe launched its “Reit+” portfolio, which invests in Singapore government bonds and 15 Singapore Exchange-listed Reits. Stashaway also introduced a mixed-asset portfolio that aims to provide income of 3.75% per annum.
