DBSAM Launches Enhanced Income Fund (S$)

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New Fund Promises Better Returns Over Fixed Deposits

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Investors Gain With Two-Day Turnaround For Sales Proceeds From Units Sold

SINGAPORE, SEPT 5, 2000 - DBS Asset Management (DBSAM) today launched the DBS Enhanced Income Fund (S$), a low-risk investment vehicle which offers enhanced returns over fixed deposits, and has the added advantage of being liquid and flexible.

This open-ended unit trust seeks to outperform the 3-month Singapore Interbank Offered Rate (SIBOR) by investing in a diversified portfolio of deposits, money market instruments and short term investment grade bonds.

This Fund is positioned as a good alternative to fixed deposits, seeking to yield attractive returns relative to cash in fixed deposits. The Fund is also diversified across three levels according maturity, credit and liquidity needs, thereby ensuring low volatility and enhanced returns vis-à-vis cash deposits.

Sales proceeds from units sold are realised within two business days, giving investors ready liquidity usually associated with cash. Currently investors may wait from three days or up to one week for the funds to be made available after the sale of the units. The absence of a bid-offer spread means the Fund can be bought and sold at no extra cost, with no penalty for early redemption. Also, unlike other fixed deposit accounts offering similar returns, this Fund does not require a minimum holding period.

The DBS Enhanced Income Fund (S$) is ideal for both individuals and corporates seeking good deposit alternative. The Fund is managed by DBS Asset Management (DBSAM), the fund manager behind Shenton Income Fund*, Singapore's longest running fixed income fund and winner of numerous industry awards.

The team at DBSAM is one of the most experienced investment management groups in Singapore, with close to S$4 billion assets under management for institutions, retail and private investors.

DBSAM manages its investors' portfolios by anticipating changes in interest rates, economic conditions and capital flows, both within and across investment markets, through constant research and analysis. This allows the team to actively position investors' surplus cash toward deposits or quality-grade money market instruments that yield enhanced returns, while preserving principal. Such active cash management allows the DBSAM fund managers to seek competitive returns while offering investors the rigorous risk management they have come to expect from an industry leader.

The Fund will be launched at S$1.00, and will be available to investors with an initial investment of S$100,000. Subsequent investments may be as low as S$20,000. There is no sales charge, and with no bid-offer spread. No redemption will be allowed during the launch period.

The DBS Enhanced Income Fund ($S) can be purchased through DBS Priority Banking (including selected DBS Bank branches), DBS Private Banking (including THIP) and DBS Asset Management. Please call the hotlines at 878 7810/ 7811 to speak to our investment associates.

* 1999 Annual Investment Fund Awards - Best Fixed Income Fund over 3 and 5 years & 1997 - Best Fixed Income Fund over 3 years and Best Overall Performance over 3 years. Standard & Poor's Investment Fund Performance Awards: 1999 - Best Global Fixed Income Fund over 3 years.

Investments in the Fund are not obligations of deposits in, or guaranteed by DBSAM, any of the distributors or their affiliates, and are subject to investment risks, including the possible loss of principal amount invested. The price of units can fall as well as rise. Past performance is not necessarily a guarantee of future performance. All applications for units must be made on the application form accompanying the prospectus. Investors should read the prospectus for more details on the Fund.