Funds

Global

Ideas

Lion-OCBC Global Core Fund

Start right with low cost and diversified investment solutions

3rd Quarter 2017

Start on firm foundations

As is common knowledge to most, a great building cannot be built on weak foundations. Likewise, a high-performing, robust and stable long-term investment portfolio is only viable with a strong core component in place. Often this would constitute a portfolio of investments that traverses multiple asset classes and regional exposure.

Much like a solid foundation to a high-rise building, asset and regional diversification help investors weather volatile market conditions and mitigate potential downside risks while providing participation and exposure to the possible market upsides.

Admittedly, an investor could construct such a diversified portfolio individually by investing in many single securities across numerous asset classes. But such an exercise could prove to be prohibitively costly especially if one sought to replicate the type of multi-asset strategies employed by reputable fund managers.

A more cost-effective method would be to invest in liquid investment solutions such as multi-asset unit trusts or even index funds (ETFs). This should provide a sound base from which to layer other more nuanced and narrow investment strategies that could help enhance investment returns.

These could come through funds that adopt strategies complementary to the core portfolio which could help intensify the benefits of active management, diversification and low volatility.

How this fund can help

  • The Lion-OCBC Global Core fund is a low cost, Exchange Traded Funds-based (ETF-based) investment solution that is diversified globally and across multiple asset classes. The portfolio is rebalanced on a regular basis to stay relevant and adjust to changing market conditions.
  • Two portfolio types – Moderate and Growth – seek to provide a sustainable level of income and moderate medium- to long-term capital growth within a target level of portfolio risk and volatility measured over the long-term.
  • This concept of a fund of ETFs and relatively less active management allows the fund manager to charge investors a lower fee. Low cost diversification via such an investment proposition provides a solid foundation upon which investors could build on, perhaps through the addition of more nuanced or exotic strategies that complement their core holdings. This could help further enhance returns over the long term. In terms of income, investors can look forward to potential quarterly payouts through investments in this fund as well.
  • The Moderate and Growth funds offer payouts of about 3.5 per cent and 4.5 per cent per annum respectively. However, it is important to note that these distributions are not guaranteed and may be changed at the fund manager’s discretion without prior notice.

About the fund

Initial Offer Period Price
S$1.00
Inception Date
1 August 2017
Fund Size
N.A.
Annual Management Fee
0.6% p.a.
Subscription Modes
Cash/ SRS (SGD-Hedged share class)

The fund’s NAV, top holdings and asset allocation were not available at the time of publication.

These details will be available after the fund starts trading on 1 August 2017.

The information below solely constitutes the views of OCBC Bank and does not consider the specific investment objectives, financial situation or needs of anyone. The Bank is therefore not responsible for any loss or damage arising from this information. Investment involves risks. If you wish to make an investment, you should first speak to your OCBC Relationship Manager or a Personal Financial Consultant.
LION-OCBC GLOBAL CORE FUND (MODERATE) ACC SGD-H

Suitable for Balanced/ Growth

1-year performance

+ 6.53 %

LION-OCBC GLOBAL CORE FUND (GROWTH) ACC SGD-H

Suitable for Growth

1-year performance

+ 7.39 %

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