Nikko AM SGD Investment Grade Corporate Bond ETF
The IntraDay NAV calculations shown are provided by ICE Data Indices, LLC are updated during SGX trading hours. Powered by FactSet. IntraDay NAV calculations are indicative and for reference purposes only.
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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.
Fund Performance (SGD)
|Return (%)||3 Mths||6 Mths||1 Yr||3 Yrs||5 Yrs||Since Inception|
|3-Year Annualised Tracking Error||0.30%|
|3-Year Annualised Tracking Error0.30%|
Source: Nikko Asset Management Asia Limited as of 30 September 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 SGD Non-Sovereigns Large Cap Investment Grade Index|
|Listing Date||27 August 2018 on the Singapore Exchange|
|Fund Structure||Open-ended Listed Unit Trust traded on Singapore Exchange|
|Lot Structure||10 units per lot|
|Dividend Distribution Frequency*||Semi-annually at discretion of Manager|
|Manager||Nikko Asset Management Asia Limited|
|Trustee||DBS Trustee 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 0.02% p.a.|
|Total Expense Ratio#||0.25% p.a. (Audited as of financial period ended 30 June 2021)|
|SGX Stock Code||MBH|
|ISIN Stock Code||SGXC70121915|
|SGX Trading Name||NikkoAM SGD IGBond ETF|
|Bloomberg Ticker||NIKIGCB SP|
|iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index|
|27 August 2018 on the Singapore Exchange|
|Open-ended Listed Unit Trust traded on Singapore Exchange|
|10 units per lot|
|Dividend Distribution Frequency*|
|Semi-annually at discretion of Manager|
|Nikko Asset Management Asia Limited|
|DBS Trustee Limited|
|PricewaterhouseCoopers LLP (Singapore)|
|Designated Market Makers|
|FlowTraders Asia Pte Ltd, Phillip Securities Pte Ltd|
|Up to 0.02% p.a.|
|Total Expense Ratio#|
|0.25% p.a. (Audited as of financial period ended 30 June 2021)|
|SGX Stock Code|
|ISIN Stock Code|
|SGX Trading Name|
|NikkoAM SGD IGBond 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 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.
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.
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.
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.
A diversifier to improve risk-adjusted returns
During the period from August 2012 to March 2021, 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.
(based on internal calculation)
WAYS TO INVEST
Trade through your stock
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 or multiples of 20,000,000 is required.
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: