Taken from Nikko AM -
The investment objective of the Fund is to provide investors with investment returns that correspond closely to the total return of the iBoxx ABF Singapore Bond Index before fees and expenses.The iBoxx ABF Singapore Bond Index is an indicator of investment returns of S$ denominated debt obligations issued or guaranteed by the Singapore government (or any other Asian government), a Singapore government (or any other Asian government) agency, quasi-Singapore government (or any other Asian government) entity, or supranational financial institutions.
Top Portfolio Holdings (as of 30-Jun-2013)
Cash
Housing & Development Brd
Land Transport Authority
PSA Corporation Ltd
Singapore Government
Sp PowerAssets Ltd
Temasek Financial I Ltd
Do take the article with a pinch of salt. Sure, it stated factually how well it did in "difficult market conditions". I guessed they have forgotten to state how well it did in comparison during good market conditions?
Also, consider the possibility that during difficult market conditions, we instead BUY into equities at depressed prices, how much would we have gained when the market rebounded?
Time is our best friend.
Personally, I'm not recommending that you buy, or do not buy in it. It is merely a matter of choice. With a small capital, I do not touch ABF ETF at all since 1 lot (1,000 shares) costs $1160 at current prices. I prefer to keep cash instead for the "bond" portion of my portfolio.
At the moment, I'm roughly keeping my portfolio at a 70% (STI ETF) vs 30% (Cash) ratio, which I intend to re-balance annually.
Do take the article with a pinch of salt. Sure, it stated factually how well it did in "difficult market conditions". I guessed they have forgotten to state how well it did in comparison during good market conditions?
Also, consider the possibility that during difficult market conditions, we instead BUY into equities at depressed prices, how much would we have gained when the market rebounded?
Time is our best friend.
Personally, I'm not recommending that you buy, or do not buy in it. It is merely a matter of choice. With a small capital, I do not touch ABF ETF at all since 1 lot (1,000 shares) costs $1160 at current prices. I prefer to keep cash instead for the "bond" portion of my portfolio.
At the moment, I'm roughly keeping my portfolio at a 70% (STI ETF) vs 30% (Cash) ratio, which I intend to re-balance annually.
Hi, what are your views on this fund versus the db x-trackers II Markit iBoxx ABF Singapore Government UCITS ETF (symbol KV4) ?
ReplyDeleteDespite the similarly low expense ratio of 0.20%, I don't like it, purely because the indexing is achieved via indirect replication, as you can see from the product factsheet.
DeleteDirect replication (also known as ‘physically replicated’) ETFs invest directly in all or an optimised sample of the securities that constitute the index.
By contrast, indirect replication – also known as ‘swap-based’ or ‘synthetic replication’ – involves the ETF entering an agreement with a swap counterparty to provide the returns of the index being tracked.