Capital preservation with minimal risk exposure
|Tactical Asset Allocation|
|Asia Pacific ex Japan||0.00%|
|Developed Markets (DM)||80.00%|
|DM Government Bonds||44.00%|
|DM Corporate Bonds||36.00%|
|Emerging Markets (EM)||0.00%|
|Source: DBS CIO Office, Morningstar Investment Management Asia Limited, as of Apr 2019|
The core methodology of Morningstar Strategic Asset Allocation Model used to determine investment portfolios is mean-variance analysis. Mean-variance analysis was developed by Harry Markowitz in the 1950’s and provides a mathematical framework for generating portfolios that maximize expected return for a given level of risk (efficient portfolios). Mean-variance analysis requires three statistical estimates for each asset class: 1) Expected return (Mean), 2) Expected risk (Standard Deviation), and 3) Expected relationship between the asset classes (Correlation Coefficients).
Morningstar Investment Management (MIM), through its heritage in Ibbotson Associates, is widely viewed as one of the leading authorities on the development of capital market assumptions. They have written numerous award-winning articles on the subject. MIM’s “building block” methodology for estimating returns was first developed in the 1970s and continues to be improved upon.
For Professional Investors Only. Morningstar Investment Management Asia Limited (“Morningstar”) is licensed and regulated by the Hong Kong Securities and Futures Commission to provide investment research and investment advisory services to professional investors only. Morningstar relies on certain exemptions (Singapore Financial Advisers Regulations, Section 27(1)(e)) to provide its financial advisory services to institutional investor recipients in Singapore.
Morningstar provides strategic asset allocation to DBS Bank Limited (“DBS”) based on certain criteria set by DBS. DBS has the authority to accept, reject or modify Morningstar’s strategic asset allocation. Morningstar takes no responsibility for advice provided by DBS to its clients. Morningstar is licensed with the Hong Kong Securities and Futures Commission to provide investment research and investment advisory services to professional investors (which include DBS) only. Morningstar is not acting in the capacity of adviser to individual investors. Morningstar is not affiliated with DBS. The Morningstar name and logo are registered trademarks of Morningstar, Inc. All investments involve risks. The information is for your reference only and does not constitute any offer or solicitation to enter into any investment arrangement. Past performance is not indicative of future performance. You should refer to relevant investment offering documents for detailed information prior to investing in any investment option.