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All other countriesNikko AM SGD Investment Grade Corporate Bond ETF
The Intraday NAV of the ETF (updated every 15 seconds during the market hours) is indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by SGX (the Intraday NAV provider), its affiliates or its respective third party Licensors. SGX, ITS AFFILIATES AND ALL OF THEIR THIRD PARTY LICENSORS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE AS TO THE iNAV OR THE RESULTS OBTAINED BY THE USE OR THE PERFORMANCE THEREOF. IN NO EVENT SHALL SGX 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.
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 May 2020.
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 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.
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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.
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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.
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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.
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Higher Yields
With a yield of 3.25%, the Index offers higher yields as compared to bank fixed deposits and Singapore government securities.
Source: DBS, OCBC, UOB, MAS, Markit iBoxx and Nikko AM (based on internal calculation), as of 28 February 2019.
^ Yield comparison is based on yield to maturity on a three to five year maturity period. The yield on bank fixed deposit refers to the average 36-month fixed deposit interest rate offered by the three major Singapore local banks, on a deposit amount between $1,000 and $50,000. The theorectical Index's yield to maturity is as of 28 February 2019, assuming no corporate default. The yield on the Singapore Government Security (SGS) is based on the yield to maturity of the 1.75% Singapore Government Bond maturing on 1st February 2023 (ISIN code SG31B8000001) as of 28 February 2019. -
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)
WAYS TO INVEST
Trade through your stock broker
on the Singapore Exchange (SGX) using:
- Cash
- Supplementary Retirement Scheme (SRS)
Regular Savings Plan (RSP)
Invest in the ETF on a regular basis with:
(*transaction fees or charges may apply with the respective parties below)
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