Lion Global Investors Launches First Actively Managed Fund with Very-Low Total Expense Ratio for Singapore Investors

For Immediate Release

 

  • The LionGlobal All Seasons Fund comes with a very-low Total Expense Ratio (TER) capped at 0.5% per annum, enabling investors to increase their odds of earning better returns from the investment
  • The fund is a well-diversified portfolio of funds and ETFs, designed to better weather investment risks in all economic seasons
  • LGI aims to democratise investment solutions, making investing simple, readily accessible and affordable for investors

 

Singapore, 18 July 2018 - Lion Global Investors Limited (LGI), one of the largest asset management companies in Southeast Asia, announced the launch of the LionGlobal All Seasons Fund (“the Fund”) today. Designed primarily for Singapore-dollar investors, the Fund allows investors to invest in a globally-diversified, balanced portfolio of funds and exchange-traded funds (ETFs) at an uncommonly low Total Expense Ratio (TER)1.

For the actively-managed fund, the Fund comes with a very-low TER capped at 0.5% per annum (p.a.). This means for every $1,000 invested in the Fund, only $5 would go into cost2 of investment. One component of the TER is the annual management fee, which at 0.25% p.a., is significantly lower than other actively-managed funds with a global investment mandate.

LGI’s Chief Executive Officer, Gerard Lee, commented: “The LionGlobal All Seasons Fund was brought into existence primarily to create a simple, accessible and low-cost investment solution for investors at large. The term ‘all seasons’ is symbolic of the fact that the Fund is designed to better weather all economic cycles. Research3 has shown that a lower TER is likely to lead to better returns over the long-term as a high cost of investment eats into investment returns. With the TER of the Fund capped at 0.5% p.a., investors will incur a lower cost of investment and this would increase their odds of earning better returns from their investment.

“Through the funds and ETFs in the portfolio, investors can easily gain exposure to global equities and bonds. The Fund would appeal to long-term investors seeking a low-cost, well-diversified investment. Given LGI’s heritage and 32-year strong presence in the market, we are able to leverage our size to lower the costs from the underlying LGI funds that the Fund invests in, thereby resulting in a low TER.”

To ensure accessibility to the average investor, the minimum initial subscription is set at only S$100. Subsequent subscriptions can also be made at S$100. Investors may subscribe to the Fund using cash or Supplementary Retirement Scheme (SRS) monies.

The Fund comprises two portfolio options to cater to investors of different risk appetites: the LionGlobal All Seasons Fund (Growth)’ and ‘LionGlobal All Seasons Fund (Standard)’. The portfolio of the ‘LionGlobal All Seasons Fund (Growth)’ is designed with a 30/70 allocation to bonds/equities, tapping into the longer-term growth potential of equities; the portfolio of the ‘LionGlobal All Seasons Fund (Standard)’ is designed to invest 70% of the portfolio in fixed income and 30% in equities, to leverage the stabilising presence of bonds in the mix.

Currently, the fixed income components in the portfolio include: LionGlobal Short Duration Bond Fund; LionGlobal Singapore Fixed Income Investment; and LionGlobal Asia Bond Fund. The equity components in the portfolio include: LionGlobal Asia Pacific Fund; LionGlobal Japan Growth Fund; Vanguard S&P500 UCITS ETF; and DB X-trackers Euro Stoxx 50 UCITS ETF.

The LionGlobal All Seasons Fund is now available at all OCBC Bank branches, via the OCBC OneWealth™ app and OCBC Online Banking, as well as the online platforms of other distribution partners, including dollarDEX, FSMOne and POEMS. More information on the Fund is available at www.lgidirect.com.sg/allseasonsfund.

 

1 The TER comprises most of a fund’s operating expenses charged on an ongoing basis and includes trustee fees, legal fees, audit fees, custodian fees, printing and distribution fees, and amortised expenses but does not include brokerage and transaction costs.

2 Refers to the Total Expense Ratio of the LionGlobal All Seasons Fund, which is capped at 0.5% per annum.

3 Source: Morningstar’s article titled "How Fund Fees are the Best Predictor of Returns", 4 October 2016. http://www.morningstar.co.uk/uk/news/149421/how-fund-fees-are-the-best-predictor-of-returns.aspx

 

PDF or Media Release: Lion Global Investors Launches First Actively Managed Fund with Very-Low Total Expense Ratio for Singapore Investors

– End of Media Release –

 

About Lion Global Investors Limited

Lion Global Investors Limited, a member of the Oversea-Chinese Banking Corporation Limited (OCBC) Group, is one of the largest asset management companies in Southeast Asia. Established since 1986, it is uniquely positioned to provide Asian equities and fixed income strategies and funds to both institutional and retail investors.

 

ISSUED ON BEHALF OF : Lion Global Investors Limited

BY : Cognito Asia Pte. Ltd.

31 Hong Kong Street #02-01

Singapore 059670

MEDIA CONTACT : Mr Darrell Wright / Ms Sharan Nanwani

TEL : (65) 6221 7310

EMAIL : LGI@cognitomedia.com

 

This publication is for information only. It is not a recommendation, offer or solicitation for the purchase or sale of any securities or investments and does not have regard to your specific investment objectives, financial situation, tax position or needs. Applications for units in our funds must be made on forms accompanying the prospectus. You should read the prospectus and Product Highlights Sheet which is available and may be obtained from Lion Global Investors Limited (“LGI”) or any of its distributors, consider if a fund is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to invest in the fund. Investments in our funds are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of a fund is not guaranteed and the value of units in a fund and the income accruing to the units, if any, may rise or fall. Past performance, as well as any predictions, projections, or forecasts are not necessarily indicative of the future or likely performance of a fund. Dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the fund. Any information (which includes opinions and estimates) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information contained herein and no warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The fund may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for the purpose of efficient portfolio management. LGI, its related companies, their directors and/or employees may hold units of a fund and be engaged in purchasing or selling units of a fund for themselves or their clients. Lion Global Investors® Limited (UEN/ Registration No. 198601745D) is a Singapore incorporated company, and is not related to any asset or fund management entity that is domiciled in Europe or the United States.