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Old 23-07-2013, 01:41 AM   #1
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Red face POSB Invest Saver

SGX, POSB launch new Invest-Saver product - Channel NewsAsia

To encourage more Singaporeans to start investing early for retirement, the Singapore Exchange (SGX) and POSB have come up with a new product that allows one to invest in exchange traded funds while also saving for retirement.

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SINGAPORE: To encourage more Singaporeans to start investing early for retirement, the Singapore Exchange (SGX) and POSB have come up with a new product that allows one to invest in exchange traded funds while also saving for retirement.

SGX added that it is on the lookout for potential partnerships that can make long term investing more accessible for their customer base.

Ninety-seven per cent of Singaporeans’ retirement funds are tied up in fixed deposits, property and insurance, and the remaining three per cent are in equities, mutual funds or unit trusts, revealed a SGX-Oliver Wyman study on retirement savings.

A low interest rate environment and rising inflation has eroded the dollar value of one's savings, especially retirement savings. Far more retirement savings in Singapore are still held in fixed bank deposits than in many other countries, said the SGX-Oliver Wyman study.

Only 12 per cent of investible CPF savings are held in equities versus the 50-70 per cent in a range of other countries including US, UK, Hong Kong, Malaysia and Australia.

Research shows that 41 per cent of Singaporeans have never saved specifically for retirement while 60 per cent of Singapore's working adults save less than 20 per cent of their monthly income.

With families becoming smaller, experts say it is increasingly less viable for Singaporeans to depend on their children for financial support in their retirement years.

By the time Singaporeans reach retirement age, CPF savings will only be sufficient to meet 68 per cent of their pre-retirement income, revealed the SGX-Oliver Wyman study.

But with the new POSB Invest-Saver product, a combination of a regular savings plan and exchange traded fund, saving for retirement could start from as little as S$100 a month with no brokers involved.

An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks.

Potential investors can subscribe for the product via any of 1,100 ATMS islandwide.

The POSB Invest-Saver is linked to the Nikko AM Singapore STI ETF, an exchange-traded fund that tracks the performance of Singapore’s top 30 blue chip companies.

DBS, the largest local bank in Singapore, hopes that the product will make long term investing more manageable for young Singaporeans.

Tan Su Shan, managing director and group head of Consumer Banking and Wealth Management at DBS Bank, said: "Singaporeans are a little bit barbelled in their investment approach. We either have cash or we have properties, so either very liquid or very illiquid and possibly not enough in fixed income or equities. So this speaks to the asset diversification that we're trying to promulgate right now."

Chew Sutat, executive vice president of SGX, said: "If you look at the amount of cash savings we have, both in CPF systems and banking deposits, every year we as a nation are potentially leaving S$3-5 billion of investment returns on the table by not investing.

"As long as we have like-minded partners who share common goals of wanting to bring more accessible investing to their customer base… we'll be happy to support them."

Potentials investors in this latest product could expect to reap an annual average return of between 2 and 3 per cent.

- CNA/jc
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Old 23-07-2013, 01:47 AM   #2
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Annual average return of 2-3%.

borderline of CPF interest rates

No brokers involved, but give 2-3%.
Chew Su Tat said we leave 3-5billion each yr on table by not investing from our CPF and banks. CPF investible amount is 35% and gosh how mucb our govt makes by using our CPF monies to invest in GIC and forbid us to only utilise max 35%
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Old 23-07-2013, 02:12 AM   #3
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My only gripe is the way this is marketed: "expect a return of 2-3% per annum"? Yeah, 3% plus or minus 20%.

Other than that, this is a bloody fantastic idea - well done DBS/POSB. This just shoved a knife between the shoulderblades of the Phillip Sec Share Builder Plan, and it's even more accessible than Stanchart's brokerage offerings. Someone should sticky this and send it to the top of the list of ways to invest in stocks.
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Old 23-07-2013, 02:54 AM   #4
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Hmm how did they derive the "expected 2-3%" if the product is based on STI ETF?
A pessimistic outlook + a huge cut of fund manager fee?
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Old 23-07-2013, 07:55 AM   #5
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At the fee of 1% of the monthly investment amount, minimum $1 (for the minimum amount of $100/month), they are completely undercutting OCBC's BCIP. Well done

Hmm how did they derive the "expected 2-3%" if the product is based on STI ETF?
A pessimistic outlook + a huge cut of fund manager fee?
Actually this 2-3% might only be the dividend yield of the NikkoAM STI ETF. Last year it paid 7 cents, now it is $3.28. So it is a very conservative estimate.
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Old 23-07-2013, 08:04 AM   #6
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Is this still more ex than doing it ourselves with scb no commission platform and buying the same nikko sti?
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Old 23-07-2013, 08:17 AM   #7
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Is this still more ex than doing it ourselves with scb no commission platform and buying the same nikko sti?
SCB is no min commission and not no commission.

SCB should still be cheaper (0.2+%? ) but you need to assume all the advantages of using the platform plus its more difficult to implement DCA since you can't buy in odd lots.

The biggest attraction of the POSB is its very low cost. And it also a sensible upgrade for those who has a current MySavings account. So yes, its looks very attractive. But I want to take a closer look at the fine prints before making an assessment. But for now I agree it looks good.

POSB Invest-Saver
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Old 23-07-2013, 08:17 AM   #8
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I dont think u can compare like this. using scb although no com currently, it doesn't confirm chop sure win as in capital might decrease should stock value drop
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Old 23-07-2013, 08:30 AM   #9
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kopi OCBC.
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Old 23-07-2013, 08:33 AM   #10
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I think this is by far the better platform for regular ETF investing compared to POEMS or OCBC but I still think 1% is a little high for commission, not including the expenses charged by the ETF itself.
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Old 23-07-2013, 09:11 AM   #11
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Is the 2-3% per annum guaranteed?
If not guaranteed, then why don't bought directly from SGX?
Btw how much is the dividend for this ETF if purchased directly from SGX?

This POSB thing is good for those without a CDP account and those who wanna buy small number of shares.
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Old 23-07-2013, 09:19 AM   #12
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Is the 2-3% per annum guaranteed?
If not guaranteed, then why don't bought directly from SGX?
Btw how much is the dividend for this ETF if purchased directly from SGX?

This POSB thing is good for those without a CDP account and those who wanna buy small number of shares.

what so good about POSB...

see below...

http://www.ocbc.com/personal-banking...chip.html#fees

http://www.posb.com.sg/sites/persona...s/default.page

ocbc
0.30% of gross investment amount or S$5 per counter, whichever is higher (buy and sell)

posb
1% per transaction with a minimum investment sum of S$100
No fees for selling the units (this may be subjected to change)

ocbc buy and sell is 0.6% vs posb is 1%
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Old 23-07-2013, 09:45 AM   #13
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what so good about POSB...

ocbc
0.30% of gross investment amount or S$5 per counter, whichever is higher (buy and sell)

posb
1% per transaction with a minimum investment sum of S$100
No fees for selling the units (this may be subjected to change)

ocbc buy and sell is 0.6% vs posb is 1%
OCBC will be much more better if you are investing more than S$500 because of the S$5 per counter fee, as posb charges a 1%, so any amt invested above S$500 should go for ocbc instead of posb. (based solely on 1 counter)

So for starters with small cap, Posb will be more cost-savings than OCBC.

Correct me if I am wrong.
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Old 23-07-2013, 09:55 AM   #14
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OCBC will be much more better if you are investing more than S$500 because of the S$5 per counter fee, as posb charges a 1%, so any amt invested above S$500 should go for ocbc instead of posb. (based solely on 1 counter)

So for starters with small cap, Posb will be more cost-savings than OCBC.

Correct me if I am wrong.
posb very dangerous... No fees for selling the units (this may be subjected to change)....

ocbc also have some this...
5. FEES, CHARGES AND CONFIRMATIONS 5.1 Fees and Charges Fees and charges for the BCIP service shall be levied in accordance with OCBC Bank’s prevailing rates. The Customer shall, on demand pay all of OCBC Bank’s fees, and other charges for the BCIP service at such rates and in such manner as OCBC Bank may impose and stipulate from time to time. OCBC Bank may, from time to time and at its absolute discretion, revise the prevailing rate and/or amount of any charges or fees payable by the Customer in connection with the BCIP service.




so best is to use SCB online trading with 0.2% comission with no min to buy counter like Nikko AM Singapore STI ETF.

Nikko AM Singapore STI ETF counter 1 lot only 100 shares and not 1000 shares..
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Old 23-07-2013, 10:33 AM   #15
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What is the sales charge levied on the POSB Invest-Saver?
A sales charge of 1% will be deducted from your subscription amount every month. However, as we are only able to accept round figures for the POSB Invest-Saver, we will refund the 1% sales charge based on the value of the residual units (if any). Please refer to Question 4 above for an illustration.

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dont look like there is any minimun commission
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