ABF Singapore Bond Index Fund Annual Report FY 2024: Key Insights and Recommendations

Report Summary:

• Date of Report: 27 September 2024
• Financial Year: Ended on 30 June 2024
• Fund Overview: The ABF Singapore Bond Index Fund is Singapore’s first exchange-traded bond fund, primarily investing in Singapore government and quasi-government bonds. It tracks the iBoxx ABF Singapore Index.

Key Facts:

1. Fund Performance:

   • 1-Year Return: 1.56%
   • 3-Year Return: -1.67%
   • 5-Year Return: 0.40%
   • 10-Year Return: 1.34%
   • Since its inception in 2005, the annualized return is 1.98%.
   • Performance is closely aligned with the iBoxx ABF Singapore Index.

2. Dividends:

   • The fund distributed dividends in the financial year ended 30 June 2024:
     • Interim Distribution: S$1.24 per 100 units.
     • Final Distribution: S$1.24 per 100 units.
   • The total distribution for the year was S$23,389,756.

3. Portfolio Breakdown:

   • The portfolio mainly comprises Singapore Government Bonds, making up 79.66% of the total assets.
   • Other allocations include real estate (12.48%), engineering construction (5.01%), finance (1.53%), and electric utilities (0.34%).

4. Net Asset Value (NAV):

   • As of 30 June 2024: S$989,280,047.
   • NAV per Unit: S$1.0390.

5. Risk Management:

   • The fund is exposed to interest rate risk, as the performance of the underlying bonds is influenced by changes in market interest rates.
   • The fund’s investments are primarily in high-credit-quality fixed income securities, minimizing credit risk.

6. Special Activities or Actions to Improve Profitability:

   • No specific actions or strategic changes were reported to enhance profitability. The fund continues to follow an index-based investment approach to track the iBoxx ABF Singapore Index.

Investor Actions:

For Current Investors:

• Hold: If you are currently holding this fund, it may be prudent to continue holding, especially if your investment strategy aligns with long-term, low-risk bond exposure. The fund’s stability and government bond focus make it a relatively safe choice.

For Potential Investors:

• Consider Investing: The fund provides a stable option for those seeking a low-risk, fixed-income investment, especially in the Singapore government bond market. The investment may serve as a conservative component in a diversified portfolio.

Special Notes for Investors:

• This is an index-based fund, designed to closely match the performance of the iBoxx ABF Singapore Index. As such, it may not offer significant opportunities for capital growth beyond what is typical for government bonds.
• The fund distributed dividends in the financial year, indicating a potential income stream for investors.

Disclaimer:

The above recommendations are based on the fund’s past performance and current market conditions. Past performance is not indicative of future results, and investments in bonds are subject to market risks, including possible loss of principal. Please consult a financial advisor for personalized investment advice.