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DBS has introduced an investment offering aimed at clients seeking capital preservation with income. 

The DBS Global Income Note has raised more than S$1 billion ($733 million) in three months after it was first launched in January.

The note, which is open-ended, references the DBS Global Income Portfolio. The latter is a globally diversified and equally weighted portfolio of at least 100 mostly investment-grade bonds across geographies and sectors. Every month, the portfolio is rebalanced, and its average duration is adjusted using interest rate derivatives to manage portfolio interest rate risk. 

The bank said the note is designed to be a “cornerstone” of investors’ portfolios through the economic cycle. It has a current pay-out of around 4.25 per cent per annum in US dollars. It can be hedged in Singapore dollars, and investors must put in at least $50,000.

“With the hunt for yield remaining a consistent theme amid falling interest rates, narrowing credit spreads and the inverted yield environment we’re seeing today, we believe the launch of the DBS Global Income Note is timely,” Audra Seah, head of investment advisory and capital markets, DBS Private Bank, said.

The note is available to accredited investors from DBS Private Bank and DBS Treasures Private Client.