How the ABF Singapore Bond Index Fund Holds Up in Today's Market

In a world where interest rates are expected to decline, how can a bond fund ETF work for investors?

Join ETF Insights, hosted by Michelle Martin, as she looks at the ABF Singapore Bond Index Fund - Singapore’s first SGD-denominated government bond ETF launched back in 2005.

Michelle speaks with Bertram Sarmago, Investment Director and Portfolio Manager at Amova Asset Management Asia Limited, to unpack what’s changed over the years and how this bond ETF fits into today’s market landscape.

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Podcast disclaimer

Important Information by Amova Asset Management Asia Limited:  

This podcast 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 Amova Asset Management Asia Limited (“Amova 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 Amova AM Asia or our website (sg.amova-am.com before deciding whether to invest in the Fund.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Amova AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Amova 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. Amova 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. Copyright © 2023, Markit Indices Limited.

Amova Asset Management Asia Limited. Registration Number 198202562H.

Footnotes:

• Yield to Maturity (YTM) of a bond is the average annualised rate of return expected if held to maturity. Weighted Average YTM (%) is calculated by weighting the bonds with market capitalisation and duration. Figure is in local currency yield terms and on unhedged foreign exchange basis. Please note that weighted average YTM does not represent the fund’s actual rate of return or distribution yield.
• Reference to any particular securities is purely for portfolio information as at indicated date only and does not constitute a recommendation to buy, sell or hold any securities or to be relied upon as financial advice in any way.
• Duration is a measure of a bond’s sensitivity to interest rate changes. Weighted Average Duration (years) is weighted by the market value of each bond relative to the total portfolio market value. Please note that this figure is provided for reference only.
• ABF Singapore Bond Index Fund: Distributions are not guaranteed and are at the absolute discretion of the Manager. Distributions will only be paid to the extent that they are available for distribution pursuant to the Trust Deed and covered by income received from the underlying investments of the Fund. Any distribution is expected to result in an immediate reduction of the Fund’s net asset value per unit. Past payout yields and payments do not represent future payout yields and payments. Please refer to the Fund prospectus and product highlights sheet for further details.