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All other countriesNikko 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.
The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates (“ICE Data”) or their respective third party suppliers. ICE DATA OR ITS 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.
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 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.
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.
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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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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
broker
on the Singapore Exchange
(SGX) using:
- Cash
- CPF
- 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