DBS and JPMAM unveils investment portfolio for retirement needs

The portfolio calibrates asset allocation depending on investors’ life stages.

DBS, with J.P. Morgan Asset Management (JPMAM), has debuted an automated investment portfolio aimed at helping Singaporeans plan their retirement.

The DBS Retirement digiPortfolio allows investors to calibrate their asset allocation depending on their life stage (Early Career, Mid-life, and Retirement). It also enables investors to automate their drawdowns according to their retirement income needs.

Investors pay a flat 0.75% annual management fee. A portfolio can be created with a minimum one-time S$1,000 lump sum investment, and customers can subsequently choose to top-up their portfolio monthly with as little as S$100. They are also not subject to a sales charge, lock-in period, or withdrawal penalties, DBS said.

The portfolio will be professionally managed by the DBS Chief Investment Office and JPMAM.

“Customers can better map out and plan for their long-term needs while staying disciplined to invest and accumulate wealth when they are younger. This gives them greater peace of mind during their golden years,” DBS said in a press release.

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The pilot programme was progressively rolled out to select customers since late 2023, switch nearly half of the investors made up of customers younger than 40 years old. Seven in 10 (70%) opted to make recurring top-ups to their portfolios, according to DBS. 

Different life stages, different portfolios
For customers aged 30, the portfolio would allocate greater exposure to equities (65%) versus fixed income (32%) and cash (3%). With the passing of time, the portfolio will gradually de-risk from this skew, to hold more in fixed income instead. 

Once the customer nears the retirement age of 65, the portfolio would have reduced equity exposure (15%) and a heavier weight towards fixed income (82%), DBS said.

Prior to DBS Retirement digiPortfolio, investors looking to invest in such a manner would incur frequent transaction or switching costs, as they transition from one portfolio mix to the next in preparation for retirement.