The launch of the SAA framework comes at a time when global markets are experiencing heightened volatility. The VIX Index, a measure of market uncertainty, reached its highest level in five years in April 2025 – levels close to what were last seen during the Covid-19 pandemic. Since 2022, both equities and bonds indices have posted negative returns in tandem more frequently, a rare occurrence that challenges traditional portfolio assumptions, underscoring the need for portfolio resilience. 

Developed by the Bank of Singapore’s chief investment office after a year-long study and stress testing 120,000 portfolios, the framework adopts a “robust optimisation” technique which aims to create investment portfolios adapted to withstand uncertainties in market conditions and key inputs, such as expected returns and risks, thereby delivering more stable returns. This is the latest in a series of moves by the bank to enhance its investment portfolio advisory capabilities.  

This is the first time that an Asian private bank has used the robust optimisation technique to design an asset allocation framework, which is typically used by quantitative hedge funds and institutional investors. The technique comes with the analytical rigour required for managing long-term wealth portfolios, the firm said in a statement.  

The launch is also a reflection of a broader shift as investors become more sophisticated and seek portfolio-led solutions rather than product-driven offerings, and value expert guidance tailored to their goals, risk appetite, and market outlook. 

The new SAA framework is applied in the design of portfolios across five risk profiles – conservative, moderate, balanced, growth, and aggressive – with recommended allocations across asset classes such as equities, fixed income, cash, and alternative investments.  

The year-long study and testing of 120,000 portfolios was led by chief portfolio strategist, Dr Owi S Ruivivar, who joined Bank of Singapore in 2024 to solidify its focus on cross asset research, asset allocation and portfolio management. 

“This is an opportune time to rethink how we build portfolios. Traditional models depend on accurate forecasts, which are increasingly harder to make in today’s uncertain environment, where market cycles are becoming more unpredictable and volatile,” Jean Chia, global chief investment officer, Bank of Singapore, said. “Our new framework offers portfolios more resilience, helping clients navigate uncertainty with more clarity. This is how we provide long-term value to our clients.”

Quality investment and portfolio advisory is at the forefront of the Bank of Singapore’s strategy and the launch of the new asset allocation framework is part of a concerted effort to differentiate the bank. This includes the new additions to its CIO Global Advisory Council (CIO GAC), which was first established in 2024 to augment the bank’s thought leadership capabilities and investment insights.

Headquartered in Singapore, the Bank of Singapore is the private banking subsidiary of OCBC. It serves high net worth individuals and wealthy families in its key markets of Asia, Greater China, the Indian subcontinent and other international markets.