The Nikko AM SGD Investment Grade Corporate Bond ETF

This Exchange Traded Fund (ETF) was reported in The Business Times on 23 July. It was not reported in The Straits Times. The first time I heard about this was through a e-newsletter from

The Nikko AM SGD Investment Grade Corporate Bond ETF (Nikko IG Corp Bond ETF) will be listed on the Singapore Exchange from 27 August. The IPO runs from 23 July to 17 August noon.

Each ETF is priced at S$1 initially at IPO. When trading starts, the price may vary depending on the interest of investors. As the Investment Grade Corporate Bond name suggests, the ETF will replicate a basket of bonds tracked by the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index, which has a current yield to maturity of 3.2 per cent (Source: Nikko AM via Business Times).

Dividend will be paid once a year on the ETF based on the coupon (interest income) received from the basket of corporate bonds.

Retail investors can buy when the ETF is traded on the Singapore Exchange. However, they cannot subscribe to the IPO like other IPOs except by buying through their securities houses who are participating dealers.  These include DBS Vickers, UOBKayHian, Phillip Capital, FSMOne, and iFAST.

One can get further information from Nikko AM.

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The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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