ABF Singapore Bond Index Fund
Gain access to one of the world's highest-yielding AAA-rated government bonds with the ABF Singapore Bond Index Fund ("Fund"). The first exchange traded fund ("ETF") bond fund in Singapore, the Fund invests in the constituents of the iBoxx ABF Singapore Bond Index. This index tracks a basket of high-quality bonds issued primarily by the Singapore government and quasi-Singapore government entities.
For more than a decade, the Fund has demonstrated resilience and performed well even during volatile market conditions. A key reason for its performance is its investment in Singapore government bonds, one of the world's highest-yielding AAA-rated government bonds.
This fund is suitable for
Investors looking for a low risk asset class that performs well especially during periods of difficult market conditions.
Investors looking for an effective portfolio diversifier that exhibits negative correlation to other asset classes during various market situations.
Investors who are seeking potentially higher returns than Singapore dollar fixed deposit rates and have a medium to long term investment horizon.
Fund Performance (SGD)
|Return (%)||3 Mths||6 Mths||1 Yr||3 Yrs||5 Yrs||Since Inception|
|3-Year Annualised Tracking Error||0.29%|
|3-Year Annualised Tracking Error 0.29%|
Source: Nikko Asset Management Asia Limited as of 31 January 2021.
Returns are calculated on a NAV-NAV basis and assuming all dividends and distributions are reinvested, if any. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance.
|Benchmark||iBoxx ABF Singapore Bond Index Total Return Series|
|Listing Date||31 August 2005|
|Fund Structure||Open-ended Listed Unit Trust traded on Singapore Exchange|
|Lot Structure||10 units per lot|
|Dividend Distribution Frequency*||Annually at discretion of Manager|
|Governing Authority||Monetary Authority of Singapore|
|Manager||Nikko Asset Management Asia Limited|
|Trustee||HSBC Institutional Trust Services (Singapore) Limited|
|Fund Auditor||PricewaterhouseCoopers LLP (Singapore)|
|Designated Market Makers||FlowTraders Asia Pte Ltd, Phillip Securities Pte Ltd|
|Management Fee^||0.15% p.a.|
|Trustee Fee^||Up to 0.045% p.a.|
|Total Expense Ratio#||0.25% p.a. (Unaudited as of financial period ended 31 December 2019)|
|SGX Stock Code||A35|
|ISIN Stock Code||SG1S08926457|
|SGX Trading Name||ABF SG BOND ETF|
|Bloomberg Ticker||SBIF SP|
|iBoxx ABF Singapore Bond Index Total Return Series|
|31 August 2005|
|Open-ended Listed Unit Trust traded on Singapore Exchange|
|10 units per lot|
|Dividend Distribution Frequency*|
|Annually at discretion of Manager|
|Monetary Authority of Singapore|
|Nikko Asset Management Asia Limited|
|HSBC Institutional Trust Services (Singapore)Limited|
|PricewaterhouseCoopers LLP (Singapore)|
|Designated Market Makers|
|FlowTraders Asia Pte Ltd, Phillip Securities Pte Ltd|
|Up to 0.045% p.a.|
|Total Expense Ratio#|
|0.25% p.a. (Unaudited as of financial period ended 31 December 2019)|
|SGX Stock Code|
|ISIN Stock Code|
|SGX Trading Name|
|ABF SG BOND ETF|
* Distributions are not guaranteed and are at the absolute discretion of the
^Usual brokerage and handling charges to apply. Please refer to the Fund Prospectus for complete information on the Fund, relevant disclosures and fees payable.
#Management Fee and Trustee Fee are included in the calculation of Total Expense Ratio.
ABOUT THE INDEX - iBoxx ABF Singapore Bond Index
The iBoxx ABF Singapore Bond Index comprises Singapore dollar bonds issued by the Singapore Government or Singapore Government-linked entities (e.g. Housing Development Board, Temasek, and Land Transport Authority). The Index may also include Singapore dollar bonds issued or guaranteed by other Asian government, quasi-government or supranational organisations (e.g.Export-Import Bank of Korea, Korea Development Bank).
The Index is compiled and calculated by Markit Indices Limited using independent and multi-source pricing for improved accuracy.
The Index is re-balanced monthly on the last calendar day of the month after close of business. Changes to static data, such as ratings, amount outstanding etc. are only taken into account if they are publicly known three business days before the end of the month. Rating or amount outstanding changes on the last two trading days of the month are accounted for at the next re- balancing. New bonds issued must settle before the end of the month and all relevant information must be known at least three trading days before the end of the month.
For more information on the description of the index methodology and the latest information relating to the Index, please refer to www.markit.com/product/iBoxx.
Basket of majority AAA-rated Singapore government bonds
Singapore is the only Asian country that has the highest AAA credit rating awarded by all 3 major credit rating agencies. Singapore has retained this status throughout the last 15 years, covering multiple periods of economic crisis, including the Asian Financial Crisis in 1997 and the Global Financial Crisis in 2008. Singapore's AAA credit rating is supported by its USD 293 billion* of official foreign reserves and a prudent fiscal policy characterised by consistent government budget surpluses. As a result, Singapore government bonds possess a safe haven status that investors turn to during periods of market uncertainty.
* Monetary Authority of Singapore, as of February 2019 (preliminary)
Source: Bloomberg, Nikko AM Asia, as of 14 March 2019.
Excellent risk adverse play during periods of market stress
Historically, the Index has performed exceptionally well during periods of difficult market conditions. Due to its high credit quality and the strength of the Singapore Dollar, Singapore government bonds are perceived as a safe haven asset during market distress. This makes the Index an excellent diversifier for strategic asset allocation purposes to improve risk-adjusted returns of a portfolio.
Source: Bloomberg, Nikko AM Asia, as of 28 February 2019. The chart is for illustration purposes only. Past performance is not indicative of the future performance.
WAYS TO INVEST
Trade through your stock broker
on the Singapore Exchange (SGX) using:
- Supplementary Retirement Scheme
Direct Subscription through Participating Dealers (for subscriptions of 50,000 units and above)
Subscribe directly to the ETF through any of our participating dealers, subject to minimum unit requirements stated below.
Cash Subscription of New Units
For subscription of new units in the ETF using the cash option, investors need to go through an authorised participating dealer and a minimum of 50,000 units is required.
In-kind Subscription of New Units
For subscription of new units in the ETF using the in-kind option, investors need to go through an authorised participating dealer and a minimum of 20,000,000 units.
List of Participating Dealers
For more information, please feel free to contact our ETF specialists:
How to invest in ETFs using SRS
Purchase our ETF through a brokerage firm
Provide your SRS account number to your brokerage firm to deduct funds for the investment
Supplementary Retirement Scheme (SRS) is a voluntary savings scheme to encourage individuals to save for retirement while reducing taxable income.
Savings sitting idle in an SRS account only receive 0.05% per annum - that's just 50 cents per $1000. By investing your SRS savings in our ETFs, investors can make their money work harder and potentially make better returns. Please note that capital is non-guaranteed and the value of investment in our ETFs may fall or rise.
The SRS offers attractive tax benefits. Contributions to SRS are eligible for tax relief. Investment returns are accumulated tax-free and only 50% of the withdrawals from SRS are taxable from statutory retirement age onwards. Withdrawals may be spread over a period of up to 10 years to meet financial needs. Spreading out withdrawals will generally result in greater tax savings. With careful planning, a retiree who is likely to have a low marginal tax rate, may end up paying little or no tax on his SRS withdrawals.
Please note: SRS contributions are subject to a cap on personal income tax relief of $80,000 per Year of Assessment. As SRS contributions made cannot be refunded, SRS members who make SRS contributions should evaluate whether they would benefit from tax relief on their SRS contributions, and make an informed decision accordingly. Any withdrawal from a SRS account before statutory retirement age will be subject to tax for the entire sum withdrawn, and a 5% penalty will also be imposed unless in exceptional circumstances such as death or on medical grounds.
There are other applicable terms & conditions. To learn more about SRS, visit: