Nikko AM SGD Investment Grade Corporate Bond ETF

The intraday NAV is provided on a delayed basis (updated every 15 seconds during the market hours) by Interactive Data and should not be viewed as the official NAV. The intraday NAV is provided for reference purposes only and may differ from the official NAV calculated in accordance with the Prospectus. Please refer to the official NAV on our website available at the end of each dealing day.

OVERVIEW

The Nikko AM SGD Investment Grade Corporate Bond ETF (the “Fund”) is the first to offer investors easy access to Singapore Dollar-denominated, investment grade corporate bonds in affordable units. The Fund aims to replicate the performance of the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index (the "Index"), allowing investors to diversify their portfolios with corporate bonds from high quality issuers#.

Since 2012, Singapore Corporate Bonds have provided better returns compared to Singapore Government Bonds and more stable returns versus Singapore equities.*

#Unrated bonds constitute 22% of the Index weight as of 30 June 2018, and are classified according to iBoxx Implied Rating classification.
*Based on the performance of the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index, iBoxx ABF Singapore Government Total Return Index and FTSE Straits Times Index over the last five years. Source: Bloomberg and Nikko AM, 30 June 2018.

This fund is suitable for

Investors looking to gain exposure to a diversified portfolio of quasi-sovereign, Singapore and foreign corporate bonds.

Investors who want to invest in an ETF with corporate bond holdings that are of investment grade rating. Investment grade rating shows that the bond has a relatively low risk of default.

Investors who don’t have time or resources to perform individual stock picking or company research.

PERFORMANCE

Fund Performance (SGD)

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.

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.

ABOUT THE INDEX - iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index

The iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index is an Index compiled and calculated by Markit Indices Limited. The Index is designed to reflect the performance of SGD denominated non-sovereigns investment grade bonds.

The index rules aim to offer a broad coverage of the underlying bond universe, whilst upholding minimum standards of investability and liquidity. Minimum inclusion size for each corporate bond is SGD 300 million with a maximum 20% limit on single issuer exposures. The Nikko AM SGD Investment Grade corporate bond ETF aims to track the performance of the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index.

  1. The Index consists of investment grade bonds

    The top 5 issuers in the Index include established and credible institutions such as the Housing Development Board (HDB), Temasek Financial, United Overseas Bank (UOB), the Land Transport Authority (LTA), and Singapore Airlines. Only investment grade bonds, with a credit rating of AAA to BBB, are eligible for inclusion into the Index.

  2. The Index is Singapore Dollar denominated with no currency risk

    The Index is 74.8% Singapore issuers and 100% Singapore Dollar denominated with no currency risk for local investors.

  3. The Index has a lower duration

    The Index has an average duration of 4.7 years. Typically, the longer the duration of a corporate bond portfolio the more sensitive it will be to changes in interest rates. The Index has a lower duration relative to the Singapore Government Bonds because almost 90% of the underlying corporate bonds will mature within 10 years.

  4. A diversifier to improve risk-adjusted returns

    During the period from January 2013 to February 2019, Singapore corporate bonds displayed low correlation to Singapore equities. By adding Singapore corporate bonds to an all-Singapore equity portfolio, investors could reap diversification benefits and improve the risk-return profile of their portfolio.

    Source: Nikko AM, Bloomberg, as of 28 February 2019
    (based on internal calculation)

DOCUMENTS

WAYS TO INVEST

1

Trade through your stock broker
on the Singapore Exchange (SGX) using:

- Cash

- CPF

#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.

- Supplementary Retirement Scheme (SRS)

SRS is a voluntary savings scheme to encourage individuals to save for retirement while reducing taxable income.

2

Regular Savings Plan (RSP)

Invest in the ETF on a regular basis with:

(*transaction fees or charges may apply with the respective parties below)

3

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 or multiples of 20,000,000 is required.

List of Participating Dealers

Contact Us

For more information, please feel free to contact our ETF specialists:


Invest with Us

For more information on investing with Nikko Asset Management, please check below: