DCG Low Risk Balanced Fund

The DCG Low Risk Balanced Fund – Summary

The Fund

The DCG Low Risk Balanced Fund is targeted at conservative investors seeking safety of capital and returns significantly better than bank fixed deposits.

Investment Objective

The Fund’s target return is 4% p.a. over the long term. The Fund is expected to be relatively stable with volatility (standard deviation) in the low to mid-single digits range.

Income Distribution

The Manager intends to pay income distributions twice a year.

Investment Strategy

The Fund will invest in a diversified portfolio of bonds, equities and REITs issued primarily by Singapore and other Asian companies. No leverage will be employed and non-SGD exposure will be limited to 25% of the portfolio. The asset allocation guidelines are:

Policy Maximum Minimum
High quality bonds 70% 85% 60%
Equities 20% 30% 0%
REITs 10% 20% 0%

Track Record and Experience

The Fund will be managed by Daniel Chan and William Toh. Daniel is the Managing Director of DCG Capital. He has substantial experience managing low risk balanced mandates. Since 2013, DCG Capital has successfully managed several segregated balanced-mandates for a local institution and HNW individuals.

William Toh is portfolio manager with over 25 years of investment experience. In his former role as CIO pf Asia General Holdings William was responsible for managing the insurance funds of Asia Life Assurance and Asia Insurance (2001-2006). William also serves on the investment committees of the Methodist Church of Singapore and several Mapletree Private Funds.

The investment team’s experience is detailed in Appendix A.

In addition, Appendix B provides the track record of accounts with similar mandates that are managed by DCG.

Our pitch book is available for download here.

A Class I Class
Currency S$ S$
Minimum Initial Investment S$200,000 S$1,000,000
Minimum Subsequent Investment S$10,000 S$100,000
Annual Management Fee 0.65% 0.45%
Performance Fee Nil Nil
Early Redemption Fee 2% in first 12 months, 1% in next 12 months and thereafter Nil
Minimum Account Balance S$100,000 S$100,0000
Subscription Monthly on 1st Dealing Day
Redemption Monthly on 1st Dealing Day
Valuation Monthly on last Trading Day
Domicile Singapore
Custodian DBS Bank
Fund Administrator Portcullis Fund Administrator (S)
Auditor RSM Chio Lim
Legal Counsel Chan & Goh LLP
ISIN Code SGXZ44602464

Appendix A: Investment Team

Daniel has over 30 years of investment management experience having served as Chief Investment Officer at UOB Asset Management and Lion Global Investors, two of Singapore’s largest asset management firms. From 1986 to 2004, Daniel was the Managing Director and Chief Investment Officer at UOBAM where he played a key role in establishing UOBAM as one of Singapore’s leading investment management firms. At the time of his departure, UOBAM was managing over $20 billion of assets and was Singapore’s most awarded fund manager.

After leaving UOBAM, Daniel was appointed Chief Executive Officer at Straits Lion Asset Management (SLAM) to establish the new asset management arm of the OCBC group through the merger of SLAM and OCBC Asset Management. The merger resulted in the creation of Lion Capital Management (subsequently renamed Lion Global Investors in 2008) which Daniel ran as CEO until his departure in November 2010 and as CIO until October 2009.

Daniel holds a Bachelor of Business Administration Degree from the National University of Singapore.

Daniel has served on various Investment Committees in Singapore including the Nanyang Technological University (2004 to 2013), People’s Association (2005 to 2012), the Methodist Church of Singapore (as Chairman, 2005 to 2012) and the Methodist Schools Foundation (as Chairman, 2005 to 2013). He is currently serving on the National Council of Churches of Singapore as Finance Chairman (since 1998) and as Chairman of the Investment Committee of Singapore Bible College (since 2008).

From 2000 to 2004, Daniel was the Chairman of the Investment Management Association of Singapore. In 2009, the Institute of Banking and Finance conferred on Daniel the “Distinguished Financial Industry Certified Professional” award.

William joined DCG Capital in January 2019. He has more than 25 years of investment experience.

From 2007 to 2018, he was the Chief Investment Officer of New Harbour Capital Partners and Lead Portfolio Manager of the New Harbour Asia Fund.  Prior to that William was the Chief Investment Officer of Asia General Holdings responsible for managing the insurance funds of Asia Life Assurance and Asia Insurance (2001-2006). He started his investment career at GIC in 1981.

William is an Independent Non-Executive Director of Mapletree Industrial Trust Management Ltd and also serves on the investment committees of several Mapletree property funds. He is Chairman of the Financial Investment Panel of the Methodist Church of Singapore (since 2013) and a member of the investment committee of the Singapore Bible College (since 2008).

William studied at the University of Tasmania, Australia on a Colombo Plan Scholarship and graduated with a First-Class Honours degree in Mathematical Economics. He also completed the CFA Investment Management Workshop hosted jointly by CFA Institute and Harvard Business School.

Milton joined DCG Capital as Senior Research Director in 2020 to lead the firm’s Greater China research in Hong Kong. He has been in the finance / investment industry for over two decades.

From 2008 to 2019, he was a Managing Director of Lockheed Martin Investment Management Company, the award-winning multi-billion pension fund of the eponymous manufacturer. He led a coterie of fundamentals-driven professionals to build the Asia office from scratch, overseeing investments in this region. This included not only formulating the investment strategies, but also managing the in-house funds and seeking outstanding money managers in Asia.

Milton also set up, in Hong Kong, the Greater China investment office for Dow Chemical’s US pension (from 2005 to 2008), managing an equity portfolio and finding fund managers that shared the Benjamin Graham / Warren Buffett philosophy of investing. Milton’s prior experience to this included being part of a group that built the Equity Research team in JPMorgan into an industry-acclaimed team for both sector (Regional Utility) and country (HK / China), as well as a stint as a commercial banker in Citicorp.

Milton holds an MBA with Honors from The Wharton School (University of Pennsylvania), majoring in Finance and Banking – and tutoring its International Finance course during the time. He also has a Masters in Journalism from the Hong Kong University and a Bachelor’s in Computer Science and Information System (with 2nd Upper Honors and a thesis on parallel computing) from the National University of Singapore, as well as an accounting diploma from ACCA.

Ming-Wai joined DCG Capital as Research Director in 2020 to build the Greater China research office in Hong Kong. She has more than 10 years of experience in Asian Equities.

Ming-Wai began her investment career in 2007 as a research analyst in Munich with Aequitas GmbH, an investment arm of Allianz SE focusing on European large market capitalization stocks.

From 2008 to 2019, she was Senior Investment Analyst and then Portfolio Manager of Lockheed Martin Investment Management Company, the multi-billion pension fund of the eponymous manufacturer. She not only helped build the regional office from scratch but also contributed to the fund winning the industry-acclaimed Institutional Investor award in 2009 and 2015. Her roles included co-managing the in-house equity funds (including China & Japan), co-leading research projects with the HQ, and identifying outstanding fund managers in this region.

Ming-Wai holds a Bachelor of Commerce (Accounting and Finance) from the University of Queensland, Australia, as well as a Master of International Relations from the University of Hong Kong. She has also taken courses in Quantitative Finance, as well as a program in Machine Learning from the Massachusetts Institute of Technology.

Appendix B: Fund Track Record

Pre-COVID (as at Dec2019)
In Singapore Dollar (S$) Account 1* Account 2*
Period Apr 2013-Dec 2019 Jan 2015-Dec 2019
Cumulative return (%) 28.4 25.0
Annualised return since inception as at ems (% p.a.) 3.8 4.6
Best annual return (%) 8.0 (2019) 9.7 (2019)
Worst annual return (%) -2.0 (2018) -0.9 (2018)
Standard deviation (%) 2.6 3.1
Percentage of up-months (%) 71.6 68.9
Percentage of rolling 12 mths that is positive (%) 84.1 91.8
Worst rolling 12 mths (%) -2.5 (Oct 18) -2.3 (Oct 18)
Best rolling 12 mths (%) 8.8 9.7
Peak to trough draw-down (%) -3.6 -3.2
Maximum number of months to reach previous peak 13 mths 11 mths
*Selected DCG Balanced-Mandate Accounts
In an extraordinarily difficult month like October 2018, both accounts suffered drawdowns of less than 2.0% pts each.
As the standard deviation figures also suggest, the volatility is low.
Up to Jun 2020
In Singapore Dollar (S$) Account 1* Account 2*
Period Apr 2013 – Jun 2020 Jan 2015 – Jun 2020
Cumulative return (%) 25.0 18.8
Annualised return since inception as at ems (% p.a.) 3.1 3.2
Best annual return (%) 8.0 (2019) 9.7 (2019)
Worst annual return (%)  -2.7 (Jun 2020 YTD)   -5.0 (Jun 2020 YTD)
Standard deviation (%) 3.5 4.4
Percentage of up-months (%) 71.3 67.1
Percentage of rolling 12 mths that is positive (%) 82.7 87.0
Worst rolling 12 mths (%) -2.5 (Oct 2018) -4.68 (Apr 2020)
Best rolling 12 mths (%) 8.8 9.7
Peak to trough draw-down (%) -6.2 -8.4
Maximum number of months to reach previous peak 13 mths 11 mths
Calendar Year Return (%) Account 1 Account 2
Period Apr 2013-Jun 2020 Jan 2015-Jun 2020
CY2013 1.8
CY2014 5.9
CY2015 1.3 3.82
CY2016 4.3 2.4
CY2017 6.5 8.2
CY2018 -2.0 -0.9
CY2019 8.0 9.7
CY2020 Jun YTD -2.7 -5.0
Impact of Covid19 Jan –Mar 2020 -6.2 -8.4

Melvin Tan

Melvin joined DCG Capital in 2011 and is a portfolio manager with more than 13 years of experience in investment management.

Previous experience: Lion Global Investors, Technology and Telecommunications; Straits Lion Asset Management, information technology portfolio implementation; Avanade Asia, software engineer.

Academic and post-graduate qualifications: Bachelor of Engineering (Honours), National University of Singapore; CFA® charterholder.

Teck Jin Tan (“TJ”)

TJ joined DCG Capital in 2014 as an investment analyst with more than 8 years of experience in investment management.

Previous experience: Target Asset Management, Greater China equity; Deutsche Bank, Hong Kong, macroeconomics and equity strategy; Singapore Police Force, securities fraud.

Academic and post-graduate qualifications: Bachelor of Engineering (Honours), Master of Engineering, Cambridge University; MBA, Columbia University; CFA® charterholder.

William Toh

William joined DCG Capital in January 2019. He has more than 25 years of investment experience.

From 2007 to 2018, he was the Chief Investment Officer of New Harbour Capital Partners and Lead Portfolio Manager of the New Harbour Asia Fund. Prior to that William was the Chief Investment Officer of Asia General Holdings responsible for managing the insurance funds of Asia Life Assurance and Asia Insurance (2001-2006). He started his investment career at GIC in 1981.

William is an Independent Non-Executive Director of Mapletree Industrial Trust Management Ltd and also serves on the investment committees of several Mapletree property funds. He is Chairman of the investment committee of the Methodist Church of Singapore (since 2013) and a member of the investment committee of Singapore Bible College (since 2008).

William studied at the University of Tasmania, Australia on a Colombo Plan Scholarship and graduated with a First Class Honours degree in Mathematical Economics. He also attended the CFA Investment Management Workshop presented jointly by CFA Institute and Harvard Business School.

Qiu Xinghao

Xinghao joined DCG Capital as a Research Assistant in Feb 2018. He has over 5 years of experience in Finance. From 2012 to 2017, he was in CPGFM as a Finance Assistant. From 2017 to 2018, he was a Finance Executive in Urban Redevelopment Authority. Xinghao holds a Degree in Business Mangement from RMIT (Singapore).

Soh Hua Qun

Hua Qun joined DCG Capital as an Investment Analyst in January 2020. From 2016 to 2018, he worked in PricewaterhouseCoopers as an auditor. In 2019, he started his investment career at SEAVI Advent Private Equity, the Asian Affiliate of Advent International. Hua Qun holds a Bachelor of Business Administration (Accountancy) Degree from the National University of Singapore. Since 2016, he has been an Associate member of the Institute of Singapore Chartered Accountants. He has passed CFA Level II.