Stanchart Launches Offshore Fixed Income Product
Isaac Pinielo | Monday November 16, 2015 14:46
The bank is the first in the market to make these investment instruments available to retail customers through a local distribution channel.
Biswaroop Barua, group head of credit products at Standard Chartered Bank Singapore said the primary purpose of offering fixed income instruments is to service clients who typically have a low-to-medium risk appetite.
These, he added, are clients looking for stable returns with an investment vehicle that offers potentially higher yields than normal term deposits and want the potential of capital gains while mitigating risk and allowing for adequate portfolio diversification.
“Investing offshore can play a key role in helping to diversify from the narrow local market with minimal market capitalisation,” he said.
Barua also noted that an offshore allocation is key to providing a complete solution, not only to reduce volatility through diversification, but also to increase potential returns.
According to Barua, the offshore bonds offer a unique opportunity for investors to directly access a range of investment grade bonds comprising of Shariah-complaint Islamic bonds (Sukuks), perpetuals, sovereigns, fixed rate and variable rate bonds.
“This diverse offering provides investors a wide variety of choices to customise their investment portfolio to suit their financial objectives,” he said.
Chief executive officer of Fleming Asset Management, Peter Van Riet-Lowe who has extensive experience in investment management, shared his personal experience and insights on the benefits of a diversified portfolio.
He noted that the bond market is growing and that this gives investors alternative investment opportunities.
“Standard Chartered wants to add to these opportunities. I would like to encourage those in attendance to consider the offering to help them grow and protect their wealth,” said Riet-Lowe.
The bank stated that by introducing the Offshore Fixed Income Proposition it is expanding its wealth management offering.
“As the business continues to focus on building a stronger wealth management proposition and brand, the addition of offshore investment solutions (fixed income securities) to its existing proposition will further showcase its commitment of being here for good,” the bank said.
Given the bank’s global presence, it is believed that this will assist it in penetration of offshore solution markets.