OCBC reeled in more than S$1bn ($750m) across multiple fund launches in 2024, leveraging partnerships with global fund houses to roll out innovative structures to capture retail investor inflows.

Last year, the Singaporean bank launched investment products for customers in partnership with asset managers including Amundi, AllianceBernstein, M&G, Pimco and Franklin Templeton. 

The strategy comes as competitors including DBS, Standard Chartered and Maybank ramp up similar efforts to address the rising demand for wealth products. 

‘Our goal is to fill our product shelf with products that have a strong proposition,’ said Timothy Liew, head of investments at OCBC. 

‘We [aim] to continue to source best-in-class funds across the industry to better serve the needs of our clients and meet their wealth goals.’ 

OCBC has tapped into various structures to innovate and cater to retail clients. For instance, it was the first retail bank in Singapore to distribute the M&G (Lux) Optimal Income fund through a back-end share class. Investors do not pay a sales charge at the point of purchase but incur a redemption fee if they exit within 2.5 years. 

Liew said this arrangement benefits customers with longer investment horizons, encouraging them to hold the funds for the long term for better performance.

‘Successful partnerships like we had with M&G Investments are an example of how we can leverage differentiated and innovative products for our customers,’ said Liew. 

The M&G income fund was previously distributed by private banks. More than S$500m was raised, with the fund later extended via a white-label partnership with BOS Wealth Management in Malaysia.

Similarly, OCBC partnered with Franklin Templeton last September to launch the Franklin Income fund through the new Class Q shares, which waive initial sales charges. Shares automatically convert to Class A after three years, with early redemption penalties. 

From innovative fee structures to expanding private banking offerings, there is a broader trend of making wealth management more accessible to mass-affluent clients.

DBS partnered with BlackRock last July to launch the DBS CIO Target Maturity Fund 2027, with more than S$50m raised. Last April, DBS rolled out a fixed income fund of funds, the Amundi Asia Funds - All Weather Income fund, with the European asset manager.

Meanwhile, Standard Chartered has been bringing its discretionary portfolio management to retail across 12 markets. Since launching its Signature CIO funds in 2022, it has brought in $2bn in wealth assets under management, according to the bank’s affluent investor seminar 2024. Amundi Asset Management acted as the investment manager.

In February, Maybank teamed up with Manulife Investments to launch Empower Solutions, a suite of four distinct funds – income, conservative, moderate and growth – that combines equities, fixed income and alternative assets.

Banks in Singapore are expected to deepen partnerships with asset managers in 2025, focusing on customisable solutions and hybrid fee models.