ABF Singapore Bond Index Fund

NAV

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S$
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FUND SIZE

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S$
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MILLION

The Intraday NAV of the ETF (updated every 15 seconds during the market hours) as shown above (the "data") are provided by ICE Data Indices, see ICE Terms of Use, and is updated during SGX trading hours. Powered by Factset. The Intraday NAV is indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates (“ICE Data”) and ICE Data or its respective third party suppliers MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, IOPV, FUND OR ANY FUND DATA INCLUDED THEREIN. IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. You acknowledge that the data is provided for information only and should not be relied upon for any purpose.

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OVERVIEW

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.

PERFORMANCE

Fund Performance (SGD)

Source: Markit & Nikko Asset Management Asia Limited as of 31 May 2018
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.

FUND DETAILS

*Distributions are not guaranteed and are at the absolute discretion of the Manager.
^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.

FUND NAV

ABOUT THE INDEX - iBoxx ABF SINGAPORE BOND FUND

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 financial institution (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.

  1. 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 260 billion* of official foreign reserves and a prudent fiscal policy characterised by consistent government budget surpluses. As a result, Singapore government bonds possess a low-risk safe haven status that investors turn to during periods of market uncertainty.

    * Monetary Authority of Singapore, as of 28 April 2017

  2. 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 were perceived as a low-risk 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.

FAQ

The ABF Singapore Bond Index Fund is Singapore's first bond ETF. It seeks to track the total return of the iBoxx ABF Singapore Bond Index before expenses. The ETF adopts a full replication strategy by investing substantially all of its assets in the bond securities of the Index, and in the same approximate proportion of their weightings within the 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 financial institution (e.g. Export-Import Bank of Korea, Korea Development Bank).

The Fund aims to pay distributions on Units from dividends received from the underlying securities. The ability of the Fund to pay distributions on the Units is dependent on the income received from securities held by the Fund and the level of fees and expenses payable by the Fund.

The latest factsheet and prospectus for the ETF are available for downloads on this page.
Investors may also call our Hotline at 1800 535 8025 (Nikko Asset Management Asia

Presently, the Fund is included under the CPFIS - Ordinary Account and has been classified by the CPF Board under the Low to Medium Risk - Narrowly Focused - Country Singapore. The Fund is included under SRS.

No. Unlike a listed company, this Fund will not have any unitholders' meeting. Under very special circumstances, the Fund will call for an Extraordinary Resolution if there is a need to:

  • Modify or alter the provisions contained in the Trust Deed.
  • Increase maximum management and trustee fee.
  • Permit other types of fees.
  • Terminate the fund.

Please note that the reasons to call for an Extraordinary Resolution are not limited to the reasons stated above.

The price of the ETF is market driven but in general it should be close to the NAV of the Fund which is published daily.

The product is listed on the Singapore Exchange and is traded like any stock.
For investors who wish to buy 50,000 units or more, you may also subscribe through our participating dealers at the NAV of the ETF.

Please click here for more information on ways to invest.

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