Nikko AM SGD Investment Grade Corporate Bond ETF listed on SGX


SGX

Singapore Exchange (SGX) has welcomed the listing of Nikko AM SGD Investment Grade Corporate Bond ETF, the first exchange-traded fund (ETF) that offers investors easy access to a basket of Singapore Dollar-denominated, investment grade corporate bonds in affordable units.

This ETF is launched by Nikko Asset Management (Nikko AM), 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.

It garnered strong investor interest with an initial assets under management (AUM) of almost S$83 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, said:

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, added:

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 S$1 billion in AUM.

SGX offers a diverse suite of 51 ETFs, offering exposure to various asset classes (equities, fixed income or commodities) across different geographical markets.

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Nikko AM SGD Investment Grade Corporate Bond ETF listed on SGX

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