SGX lists Nikko Singapore dollar bond ETF
Singapore Exchange has listed the Nikko AM SGD Investment Grade Corporate Bond ETF, writing that this is the first ETF that offers investors easy access to a basket of Singapore dollar-denominated, investment grade corporate bonds in affordable units.
The exchange writes that this ETF is launched by Nikko Asset Management, one of the largest ETF managers in Singapore and the issuer of the Nikko AM Singapore STI ETF, ABF Singapore Bond Index and NikkoAM-StraitsTrading Asia ex-Japan REIT ETF.
The fund aims to replicate the performance of the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index, providing exposure to a diverse portfolio of more than 100 corporate bonds issued by over 50 high quality issuers.
SGX writes that it garnered strong investor interest with initial assets under management of almost SGD83 million at the end of the subscription period, demonstrating demand for efficient and diversified access to investment grade corporate bonds.
Eleanor Seet, President, Nikko Asset Management Asia, says: “The warm reception reflects the appetite for a high quality asset class. Importantly, this ETF provides diversification and accessibility at a low cost, which I believe investors recognise. With greater and ease of access to SGD-denominated bonds, we hope to see even more participation in the Singapore bond market.”
Chew Sutat, Head of Equities and Fixed Income, SGX, says: “We are delighted to welcome the listing of Nikko AM SGD Investment Grade Corporate Bond ETF, the first-of-its-kind in Singapore, providing a highly convenient option for investors to diversify their investment portfolio and allocation into a basket of investment grade corporate bonds through a single low-cost investment on the exchange. This new ETF would boost the Singapore ETF shelf managed by Nikko AM, which has currently more than SGD1 billion in AUM.”