ABF Singapore Bond Index Fund will initially invest in a portfolio of high quality, Singapore government and quasi government bonds. It will mirror closely the basket of bonds in the iBoxx ABF Singapore Bond Index. The target tracking error of the fund is set at not more than 0.4% per annum.
1. Lower Risk
- The Fund will reflect Singapore's high credit standing, which means the chances of your bonds defaulting are lower.
2. Diversification
- You get exposure to a basket of Singapore and quasi-Singapore government bonds.
- Income distribution and potential capital gains.
- Investors stand to benefit from potential gains. The Fund also targets annual income distribution, with the amount to be distributed determined at the sole discretion of the Fund Manager.
3. Low Cost
- The Fund is designed for investors who seek an "indexed-based" approach in investing. It has no sales charge (unlike traditional unit trusts) and the annual management fee is only 0.15%.
4. Easy Accessibility
- You can trade units like any stock on the Stock Exchange through your regular broker.
DBS Asset Management (DBSAM) provides sound investment management solutions to clients. DBS AM is one of the largest and most experienced asset management companies in Singapore and South East Asia, managing about S$11 billion in assets for retail, private investors and institutions as at 31 December 2006.
The iBoxx ABF Singapore Bond Index is an indicator of investment returns of debt obligations denominated in Singapore dollars issued or guaranteed by the government of Singapore (or any government of People's Republic of China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore or Thailand, collectively (the "Asian Governments"), by an agency or instrumentality of the Singapore government (or any other Asian Government), by a Singapore government (or any other Asian Government) sponsored entity or a quasi-Singapore government (or any other Asian Government) entity and Singapore dollar denominated debt obligations issued by supranational financial institutions.
Currently, the iBoxx ABF Singapore Bond Index comprises mainly bonds denominated in Singapore dollars issued by the government of Singapore (e.g. bonds issued by MAS) and Singapore government agencies (e.g. bonds issued by HDB, LTA). The Fund may in the future invests in bonds denominated in Singapore dollars issued by other Asian Government, agencies of other Asian Government, or other quasi-Asian Government entities if the composition of the iBoxx ABF Singapore Bond Index include such bonds. In that event, the credit risk of the investments of the Fund may be different from its credit risk now.
Click here to see the list of bonds in this Index: http://www.dbsam.com/abf2/profile/iboxx_abf.pdf
For interactive charting, please click here.
