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. 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.
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.
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 |
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 |
