DBS Offers Innovative Solutions In Challenging Investment Environment
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Customers will be well positioned to participate in any recovery in the major stock markets, with a guarantee on the principal
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Taps On Experience And Expertise Of DBS Asset Management And DBS Treasury & Markets
SINGAPORE, NOV. 8, 2001 DBS Bank announced today that it is offering retail investors two innovative financial solutions that provide protection combined with performance. The two new solutions, called DBS UPswing and DBS Growth Account, will offer investors the opportunity to participate in the growth of selected equity markets to enhance their returns with downside protection on their principal investment.
The decision to introduce DBS UPswing and DBS Growth Account stems from a demand from customers who are looking for alternatives in an environment where normal deposits offer low interest rates and the equity markets are uncertain.
"Under the current difficult market conditions, many conservative and risk adverse investors are looking for solutions that concurrently offer both capital guarantee, and allow them to enjoy additional returns from anticipated recovery in the equity markets," said Elsie Foh, Managing Director of Personal Banking, DBS Bank.
"DBS UPswing and DBS Growth Account offer customers exciting value propositions, and I am confident that they will be popular among many deposit-centric customers who are keen to get better returns on their money, " added Mrs Foh.
Both DBS UPswing and DBS Growth Account offer upside through a participation rate from investments in stock indices. Participation rate refers to the extent of exposure an investor has in the growth of the underlying investments of the funds. This means that customers will enjoy a larger upside should the stock indices do well over the tenure of investment.
DBS UPswing and DBS Growth Account will invest in baskets of major stock indices. This basket of stock indices allows investors to participate in any upside in these selected stock markets, with minimal or no risk to the principal investment.
"The ability to provide such viable and attractive investments options even in such uncertain times is something that we can attribute to the strength and depth of DBS expertise and resources," said Mrs Foh.
"We have been able to draw upon the expertise of both our Asset Management and Treasury & Markets teams to come up with alternative choices that meet our customers varying investment needs."
DBS UPswing Fund 5/1 offers investors a fund with a 5-year maturity period that is linked to the performance of six global stock markets. It will provide a 90% capital guarantee and a high participation rate of between 70% to 90%.
DBS UPswing Fund 7/1 offers investors a fund with a 7-year maturity period that is linked to the performance of six global stock markets, while providing a 100% capital guarantee and participation rate of between 35% to 50%. UPswing will be linked to the performance of six global stock indices, namely S&P 500, Nikkei 225, Dow Jones EuroStoxx 50, Hang Seng Index, Nasdaq 100 and S&P ASX 200 Index.
DBS UPswing is available with a minimum investment of S$5,000 at the offer price of S$1.00 per unit. UPswing customers do not have to pay any sales charge nor any charge for early redemption. There will be a low management fee of 1% p.a. and 0.8%p.a. for its 5 and 7-year funds respectively. UPswing can be purchased at DBS/POSB ATMs and DBS branches over a limited period between 12 November to 21 December 2001.
DBS Growth Account is a 4-year index-linked SGD deposit offered by DBS Bank, where depositors can share in the SGD growth of the US and four Asian stock markets with a participation rate of between 20 - 40%. Essentially, retail investors can enjoy the benefits of portfolio diversification through the convenience of a deposit. Returns are linked to the performance of five selected indices, namely S&P 500, Hang Seng Index, KOSPI 200 Index, MSCI Taiwan Index and MSCI Singapore Index. The DBS Growth Account holder can be assured that whatever happens, his principal is protected.
Customers can open a DBS Growth Account with a minimum deposit of S$5,000. Like any deposit, there will be no up front fees. DBS Growth Account can be opened at all DBS/POSB branches and through the banks direct sales teams over a limited period between 19 November to 5 December 2001.
About DBS Asset Management (DBSAM)
DBSAM is one of the largest and most experienced investment management organizations in Singapore. It manages close to S$5 billion in assets for institutional and retail clients. DBSAM has almost 20 years experience in investment management as a company. More than half of its investment team have over 10 years of experience each.
About DBS Treasury and Markets
DBS Treasury & Markets is a leading provider of Treasury solutions and services in Singapore and the region. As both a regional market leader in the G-3 and Asian currencies, and specialists in structuring, it is well positioned to offer both institutional and individual clients tailored, yet flexible risk management and yield enhancement solutions to suit both their business and investment needs.
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