#whosays Bonds Are Only For The Big Boys?

The Nikko AM SGD Investment Grade Corporate Bond ETF is Singapore’s first investment Grade Corporate Bond ETF. The Fund offers investors easy access to corporate bonds; an asset class which typically trades OTC and in large notional amounts.

Investors can now gain access to corporate bonds, without having to be an accredited investor or trade in denominations of $250,000.

The Nikko AM SGD Investment Grade Corporate Bond ETF offers investors with:

For more information about ETFs, please visit https://www.poems.com.sg/products/etf/.

Key Information

Instrument Type: Exchange Traded Fund (“ETF”)
Tracked Index: iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index
Exchange Listing: SGX-ST
EIP / SIP Classification Excluded Investment Products (EIP). Investors can trade EIP without any prerequisite.
Trading Currency: Singapore dollars (S$)
Estimated Dividend Yield: Bonds inside the benchmark index have an average coupon rate of 3.40% per annum. The net indicative yield will be ~3%.
Dividend Distribution Frequency: The Manager currently intends to make annual distributions, less the expenses of the Fund, to Holders around January of each year
Expense Ratio: Expense ratio is capped at a maximum of 0.30% per annum.
Manager: Nikko Asset Management Asia Limited

The specific risks of investing in the Fund are Market Risk, Liquidity Risk, Interest Rate Risk, Credit risk, Tracking error risk and so on. Please refer to the Prospectus under the Section IX Risks.

Comparisons between Stocks and Bonds

Asset Class: Stocks Bonds
Volatility: Higher volatility. No limits on upside gain and downside loss Lower volatility. Price will approach par value towards bond maturity
Obligations: No legal obligations to pay dividends and no guaranteed principal protection   Legal obligations to pay interests and repay principal at maturity, depending on the structure of the bond
Hierarchy of Claims: Shareholders are the last on the hierarchy of claim in the event of liquidation Bondholders have a higher claim hierarchy than shareholders in the event of liquidation

Learn more about Bond ETFs at Bond ETFs: A Simple and Efficient Bond Investment Option

Benchmark Index Information

Key Attributes of the Index iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index
Number of Bonds 102
Number of Bond Issuers 45
Average Coupon 3.40% per annum
Average Rating A
Yield Spread (Vs Govt) 82 bps or 0.82%
Top 10 bond issuers in Index
  1. Housing & Development Board (20.0%)
  2. Temasek Financial (9.4%)
  3. United Overseas Bank (6.2%)
  4. Land Transport Authority (5.0%)
  5. DBS Bank (4.0%)
  6. Singapore Airlines (3.9%)
  7. Huarong Finance (3.0%)
  8. Manulife Financial (3.0%)
  9. CapitaLand (2.5%)
  10. Keppel Corp (2.3%)


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This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

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Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
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