ABF Singapore Bond Index Fund begins trading on SGX-ST
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Singapore's first exchange traded bond fund offers easy access to bond market for retail investors
SINGAPORE, August 31, 2005 - The ABF Singapore Bond Index Fund (SBIF) (SGX stock code 6389), Singapore's first exchange-traded bond fund, began trading today on the SGX-ST.
DBS Asset Management (DBSAM), the manager of the bond fund, announced that it raised over S$456 million at the close of its initial public offer on August 26. Demand came from retail and institutional investors.
The Fund will initially invest in a portfolio of high quality government and quasi-government credits that are constituents of the newly-created iBoxx ABF Singapore Bond Index.
DBSAM added that the fund facilitates easy access by both retail and institutional investors looking for diversified exposure to the Singapore bond market. During the IPO period, retail investors could apply for new units in lots of 1,000 units at $1 each.
From today, investors can buy and sell units of the Fund in lots of 1,000 units through their brokers at prices posted on the Stock Exchange. Alternatively, they may subscribe to new units of the Fund through participating dealers in minimum units of 50,000 on a prescribed date every month.
At this morning's listing ceremony at the SGX, Greg Seow, Executive Chairman of DBSAM, said: "We are pleased to have played a part in today's listing of the ABF Singapore Bond Index Fund. The fund is a significant milestone in the development of the bond market in Singapore and we are happy to participate in EMEAP's efforts to make Asian local currency bond markets a distinct asset class for investors."
EMEAP, the Executive Meeting of East Asia Pacific Central Banks, is an initiative developed by the EMEAP Group that aims at broadening and deepening the domestic and regional bond markets in Asia.
Unlike the ABF 1 launched in June 2003, the ABF 2 is a local currency structure comprising a Pan-Asian Fund as well as individual country sub-funds designed to reach out to a wide base of local and international investors.
The ABF Singapore Bond Index Fund will be passively managed and mirror the iBoxx ABF Singapore Bond Index, a new index which has been set up for the fund. The fund represents a low cost and efficient vehicle for investing in local currency denominated bonds in Asia. Only government, sovereign and quasi-sovereign debt obligations that meet applicable credit rating requirements of the index will be included. Initially the index will have 35 issues of Singapore government securities and Singapore quasi-government securities.
About DBSAM
DBS Asset Management (DBSAM) is a significant investment management organisation in Singapore and South East Asia, managing over $12.6 billion in assets for retail and private investors as well as institutional clients. DBSAM was incorporated in 1982. An award-winning fund manager, DBSAM offers a full range of investment management solutions covering the entire risk spectrum of asset classes, with core competencies in Asian equities and bonds, and global fixed income. It also provides a comprehensive range of global investment solutions through strategic alliances with leading fund managers around the world. More information on DBSAM can be found on www.dbsam.com.
About DBS
Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and the Philippines. In China, the bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin and Dongguan. The Bank's credit ratings are one of the highest among banks competing in the Asia-Pacific region, and the highest among banks in Singapore. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.
Appendix: Composition of the ABF Singapore Bond Index
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