Nikko Asset Management (Nikko AM) had just announced it would list an ETF on the Singapore Exchange (SGX) on 27 Aug 2018. The new ETF, called the Nikko AM SGD Investment Grade Corporate Bond ETF (which I will shorten it to “the Fund”), tracks the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index.
This is a bond fund, similar to Nikko AM’s other offering, the ABF Singapore Bond Index Fund, which holds Singapore government and quasi-sovereign/supranational bonds.
The Fund is Singapore dollar denominated, meaning all of the underlying assets are in SGD, although 74.8% of them are issued in Singapore. Being corporate bonds, the maturity date is shorter than that of government ones, averaging 4.7 years.
As the Fund’s name imply, it holds investment grade bonds ranging from AAA to BBB- under the Standard & Poor’s credit ratings. Also, the total expense ratio is about 0….