Discretionary Portfolio Management at DBS: Mandates from USD/SGD $1M to $25M

Concept

Discretionary Portfolio Management (DPM) is a portfolio management mode in which the client sets the investment objective, risk profile, and constraints, while the DBS portfolio manager makes and executes investment decisions without approving each individual transaction. This distinguishes DPM from the advisory model: in advisory, the bank recommends, but the final decision remains with the client.

At DBS, a DPM portfolio is built around a diversified core for stability, liquidity, and long-term capital accumulation. The entry-level tier with management through selected funds is available to DBS Treasures Private Client clients (from S$1.5 million in total assets). The full range of discretionary mandates unfolds at the DBS Private Bank level: the bank itself indicates that DPM service is designed for approximately US$5 million in discretionary assets under management, while the individual bespoke level is a separate conversation about family capital.

🍓 Key nuance: the tax outcome depends on the client's residency and ownership structure, not on the name of the banking product. Below US/S$1 million, full-fledged DPM is effectively unavailable—advisory or ready-made digital portfolios remain. And most importantly: if the client still wants to approve every transaction themselves, DPM turns out to be more expensive than advisory without corresponding benefit—you pay for delegation you don't use.

How DPM Works at DBS

Discretionary mandates are managed under the logic of the Chief Investment Office (CIO Office) of DBS, led by Chief Investment Officer Hou Wey Fook. The central document is the DBS House View: it sets asset allocation, relative attractiveness of asset classes, regions and sectors, as well as risk scenarios. DBS's investment process is structured in three steps: asset allocation from CIO Office → portfolio positioning under the mandate and client's risk tolerance → security selection from a high-conviction list with emphasis on winners of long-term trends and income-generating assets.

At the core of all DBS DPM portfolios is the Barbell Strategy. Capital is distributed between two pillars: the "growth barbell"—exposure to long-term irreversible trends (digitalization, e-commerce, healthcare, millennial generation, China equities), and the "income barbell"—dividend stocks, REITs and corporate bonds for stable cash flow and drawdown protection. For the client, this means the mandate is not a set of random products: the portfolio follows DBS's internal investment position, unless we're talking about a Bespoke Mandate.

Mandate Range

DBS offers several types of discretionary mandates: you can assemble a global core, build an individual portfolio for your goals (bespoke), or a mandate to complement an existing portfolio. The names and parameters of individual mandates below are given as a guide based on established market practice—publicly, the bank discloses the general DPM service minimum and the existence of a range, not a page-by-page grid for each mandate. Exact thresholds and conditions are confirmed with the Relationship Manager for a specific profile.

Bespoke Mandate requires a separate investment policy, tax framework and conflict control. It cannot be perceived as simply a "more expensive DPM": it is already part of the overall architecture of family capital. The regional concentration of Asia Focus also needs to be separated from the general balanced portfolio—it can be a strength or weakness depending on the family's asset balance.

Fees and Economics

DBS structures DPM as a flat management fee; there is typically no separate performance fee. The specific fee schedule for private-bank DPM is not publicly disclosed page-by-page and is agreed individually. The tier-based management fee guidelines below are given as a market reference and are subject to verification with the current DBS Fee Schedule and Relationship Manager terms:

• first US/S$5 million in assets under management: approximately 1.00–1.20% per annum;
• next up to US/S$10 million: approximately 0.90–1.05% per annum;
• next up to US/S$20 million: approximately 0.75–0.90% per annum;
• over US/S$20 million: approximately 0.50–0.75% per annum, with the possibility of individual negotiation at the Bespoke level.

For the client, it's important to compare not only the percentage of the fee, but also what exactly is delegated: asset allocation, instrument selection, rebalancing, risk control and investment discipline. If the client still wants to approve every transaction themselves, DPM may turn out to be more expensive than advisory without corresponding benefit.

Taxes and Structuring

For a Singapore individual tax resident, the basic logic is as follows: capital gains in Singapore are generally not taxed for individuals, and dividends on Singapore-listed shares are exempt under the one-tier system. For fund structures, separate regimes apply: foreign-source income for VCC under Section 13O/13U may be exempt if the regime conditions are met.

DPM through Private Bank within a VCC structure is a standard configuration for families with a family office, but this is not an automatic tax benefit. Separately verified are the right to the regime, economic substance, investment management organization, reporting, expenditure threshold, family office status and compliance with Section 13O/13U.

Who It Suits and When It Doesn't

Suits

DPM is appropriate when the client wants to remove daily investment decision-making and trusts the DBS management framework.

• DBS Treasures Private Client clients from S$1.5 million in total assets, for whom Discretionary Mutual Funds Portfolio is sufficient;
• DBS Private Bank clients from US$5 million for Global Tactical, Classic, Asia Focus or Bespoke;
• family offices under VCC with 13O/13U regime;
• families for whom discipline, reporting and risk control are more important than independent trading.

Doesn't Suit

DPM is not suitable for those who want to trade manually or pay retail commissions for a self-managed portfolio. It is also effectively unavailable with capital below US/S$1 million.

• client wants to manually manage every transaction and trade tactically themselves;
• investment mandate does not guarantee returns and does not eliminate market risk;
• structured notes and alternatives require separate suitability verification;
• regional and thematic mandates can create concentration;
• tax outcome depends on residency and ownership structure, not on the name of the banking product.

Related Materials

• DBS Bank
• DBS Treasures Private Client
• DBS Private Bank
• Partner Introduction to DBS
• VCC Singapore
• Section 13O/13U
• Wealth Planning Singapore