Lion Global Investors (LGI) has launched a low cost fund of funds targeting Singapore-dollar investors.
The LionGlobal All Seasons fund invests in a balanced portfolio of LGI’s funds and exchange traded funds (ETFs).
The fund’s total expense ratio (TER) is capped at 0.5% per annum.
Unlike other multi-asset funds, the fund has a GDP-weighted equity allocation, instead of a market cap-weighted equity allocation, Herbert Wong, who manages the fund said.
Market cap-weighted equity allocation tends to concentrate in US market, which tends to be more expensive, while a GDP-weighted equity allocation allows the fund to diversify globally, he said at a media briefing.
For equities, the fund has exposure to Asia and Japan via its LionGlobal Asia Pacific fund and LionGlobal Japan Growth fund respectively.
For more efficient markets like the US and the Europe, the fund has equity exposure through the ETFs, namely the Vanguard S&P500 Ucits ETF and the DB X-trackers Euro Stoxx 50 Ucits ETF.
Wong, who also heads the company’s multi-asset strategies, said the allocation of the fund is designed for Singapore dollar-based investors.
The fund has core bond allocation to Singapore dollar (SGD) bonds, while non-SGD denominated bonds are hedged.
The fixed income components in the portfolio include LionGlobal Short Duration Bond fund, LionGlobal Singapore Fixed Income Investment and LionGlobal Asia Bond fund.
The fund comprises of two portfolio options – Growth or Standard – to cater for investors with different risk appetites.
The portfolio of the LionGlobal All Seasons fund (Growth) is designed to invest 30% of the portfolio in bonds and 70% of the portfolio in equities.
The portfolio of the ‘LionGlobal All Seasons Fund (Standard), meanwhile, is designed to invest 70% of the portfolio in fixed income and 30% in equities.