The Fund is an index fund which seeks investment results that correspond closely to the total return of the iBoxx ABF Singapore Index before fees and expenses.
The iBoxx ABF Singapore Index is an indicator of investment returns of debt obligations denominated in Singapore dollars issued or guaranteed by the government of Singapore or any government of People's Republic of China, Hong Kong SAR, Indonesia, Korea, Malaysia, Philippines or Thailand (collectively, the "Asian Governments"), by an agency or instrumentality of the Singapore government (or any other Asian Government), by a Singapore government (or any other Asian Government) sponsored entity or a quasi-Singapore government (or any other Asian Government) entity and Singapore dollar denominated debt obligations issued by supranational financial institutions.
* 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.
The iBoxx ABF Singapore Index comprises of Singapore dollar bonds issued by the Singapore Government or Singapore Quasi-government entities (e.g. Housing Development Board, Temasek, and Land Transport Authority [1], [2]). From time to time, the Index may also include Singapore dollar bonds issued or guaranteed by other Asian governments, Asian quasi-government entities and/or supranational financial institutions.
The Index is compiled, calculated and administered by IHS Markit Benchmark Administration Ltd (an affiliate of Markit Indices GmbH).
1Fund Holdings as at 29 February 2024
2Reference to individual issuers is for illustration purposes only and does not guarantee their continued inclusion in the portfolio, nor constitute a recommendation to buy or sell.
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 20 years, covering multiple periods of crisis, including the Asian Financial Crisis in 1997, the Global Financial Crisis in 2008, and the Covid-19 Pandemic from 2020 to 2022. Singapore’s AAA credit rating is supported by its USD 331 billion* of official foreign reserves and a prudent fiscal policy.
* Source: Monetary Authority of Singapore, as of Jun 2023 (preliminary)
2. A portfolio diversifier
The Index has largely performed well relative to global equities during periods of challenging market conditions, as illustrated in Figure below where global equities are represented by the MSCI All Country (AC) World Index. Due to the high credit quality of its constituents and strength of the SGD, Singapore Government bonds can be a compelling asset class for strategic asset allocation purposes to improve risk-adjusted returns of a portfolio.
| SGD | Return (%) | 3 m | 6 m | 1 yr | 3 yr | 5 yr | Since Inception |
| NAV-NAV | 1.60 | 0.36 | 5.85 | 2.25 | 0.07 | 2.19 | |
| Benchmark | 1.66 | 0.49 | 6.06 | 2.48 | 0.43 | 2.48 |
| Holdings | Weight |
| GOVERNMENT OF SINGAPORE 3.5% 01-MAR-2027 | 7.1 % |
| GOVERNMENT OF SINGAPORE 2.125% 01-JUN-2026 | 6.0 % |
| GOVERNMENT OF SINGAPORE 1.25% 01-NOV-2026 | 5.2 % |
| GOVERNMENT OF SINGAPORE 2.875% 01-JUL-2029 | 5.2 % |
| GOVERNMENT OF SINGAPORE 2.875% 01-SEP-2030 | 5.1 % |
| Holdings | Weight |
| GOVERNMENT OF SINGAPORE 3.375% 01-SEP-2033 | 5.1 % |
| GOVERNMENT OF SINGAPORE 2.75% 01-MAR-2046 | 4.9 % |
| GOVERNMENT OF SINGAPORE 2.25% 01-AUG-2036 | 4.7 % |
| GOVERNMENT OF SINGAPORE 2.625% 01-MAY-2028 | 4.3 % |
| GOVERNMENT OF SINGAPORE 2.75% 01-APR-2042 | 3.9 % |
| Issuer Allocation | Issuer Allocation |
|---|---|
| Government Of Singapore | 81.2 |
| Singapore Housing & Development Board | 12.0 |
| Land Transport Authority Of Singapore | 4.7 |
| Temasek Financial | 1.3 |
| Sp Powerassets Limited | 0.3 |
| Cash and/or Derivatives | 0.4 |
Exchange Traded Funds have grown in popularity, but what exactly is an ETF? What are some of the benefits of ETFs? What are the different types of ETFs? Watch this video that breaks it down for you in an easy to understand format.
#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.
SRS is a voluntary savings scheme to encourage individuals to save for retirement while reducing taxable income.
Invest in the ETF on a regular basis with:
(*transaction fees or charges may apply with the respective parties below)
Subscribe directly to the ETF through any of our participating dealers, subject to minimum unit requirements stated below.
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.
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.
Exchange Traded Funds or “ETFs” are professionally managed investment funds that typically invests in a diversified basket of stocks or bonds that track the performance of a specific index. For example, the Straits Time Index or “STI”[1].
1 The STI tracks the performance of the top 30 companies by market capitalization that are listed on the Singapore Exchange
While most ETFs passively track an index, there are some ETFs that are also actively managed.
Just like stocks, you can trade ETFs on a stock exchange at any point during market hours.
In a nutshell, ETFs offer the best of both worlds, where you have the diversification provided by a fund combined with the tradability of a stock, which can be bought and sold whenever the stock market is open.
For the rest of this FAQ section, unless otherwise specified, the term “ETF” will be used in reference only to passively managed ETFs and not actively managed ones.
As ETFs are designed to track a benchmark index and closely replicate the performance of the index, it will hold substantially all its assets in index securities in the same approximate proportion as their weightings within the index. For example, if DBS represents 20% of the STI, an ETF designed to track the STI would aim to hold 20% of the fund’s assets in DBS shares.
The ETF then issues units to investors, who can buy and sell these units on the stock exchange. The price of an ETF share is determined by the net asset value (NAV) of the underlying assets it holds.
No, ETFs can represent various asset classes, not just stocks. Other asset classes include (but are not limited to) bonds, REITs, commodities etc.
As ETF units are traded on stock exchanges, so you can buy or sell them through a brokerage account, just like you would trade individual stocks during trading hours. You place an order with your broker specifying the number of units you want to buy or sell.
ETFs and unit trusts are both investment vehicles, but they differ mainly in 2 ways:
Some ETFs pay distributions, especially those that include dividend-paying stocks or income-generating assets like bonds. Distributions are typically made to ETF unit holders on a periodic basis.
Yes, brokers may offer distribution reinvestment plans (DRIPs). With a DRIP, you can automatically reinvest your ETF distributions by purchasing additional units, thereby compounding your investment over time.
Yes, ETFs can be suitable for long-term investing. They can offer broad market exposure, diversification, and the potential for steady growth. However, it's important to choose ETFs that align with your investment goals and risk tolerance.
As with any investment, there are risks associated with ETFs. As an ETF takes on the risks of the assets it invests into, its net asset value fluctuates with the valuation of these underlying assets, and there is always a possibility of loss. However, ETFs are generally considered to be lower risk compared to individual stocks due to their diversified nature. Do note a passively managed ETF cannot respond to market movements like an actively-managed fund. For example, portfolio manager of an actively-managed fund can adopt defensive measures like reducing securities holdings during periods of volatility or in the face of impending bear market, but a passive ETF will continue to track its index in its securities holdings.
Please note that while this information provides a general understanding of ETFs, it's always important to do thorough research, consult with a financial advisor, and read the specific prospectus and documentation of any ETF you consider investing in.
The funds mentioned are Singapore registered funds approved for sale or purchase in Singapore. By proceeding, you are representing and warranting that you are either resident in Singapore or the applicable laws and regulations of your jurisdiction allow you to access the information.
This document is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. Any securities mentioned herein are for illustration purposes only and should not be construed as a recommendation for investment. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Nikko Asset Management Asia Limited (“Nikko AM Asia”).
Past performance or any prediction, projection or forecast is not indicative of future performance. The Fund or any underlying fund may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Fund are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Fund, which are available and may be obtained from appointed distributors of Nikko AM Asia or our website (www.nikkoam.com.sg) before deciding whether to invest in the Fund.
The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this document. This advertisement has not been reviewed by the Monetary Authority of Singapore.
The performance of the ETF’s price on the Singapore Exchange Securities Trading Limited (“SGX-ST”) may be different from the net asset value per unit of the ETF. The ETF may also be suspended or delisted from the SGX-ST. Listing of the units does not guarantee a liquid market for the units. Investors should note that the ETF differs from a typical unit trust and units may only be created or redeemed directly by a participating dealer in large creation or redemption units.
The Central Provident Fund (“CPF”) Ordinary Account (“OA”) interest rate is the legislated minimum 2.5% per annum, or the 3-month average of major local banks' interest rates, whichever is higher, reviewed quarterly. The interest rate for Special Account (“SA”) is currently 4% per annum or the 12-month average yield of 10-year Singapore Government Securities plus 1%, whichever is higher, reviewed quarterly. Only monies in excess of $20,000 in OA and $40,000 in SA can be invested under the CPF Investment Scheme (“CPFIS”). Please refer to the website of the CPF Board for further information. Investors should note that the applicable interest rates for the CPF accounts and the terms of CPFIS may be varied by the CPF Board from time to time.
Neither Markit, its Affiliates or any third party data provider makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data. Neither Markit, its Affiliates nor any data provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the Markit data, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom.
Markit has no obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate.
Without limiting the foregoing, Markit, its Affiliates, or any third party data provider shall have no liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgments, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein.
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