ABF Singapore Bond Index Fund Dividend (January 2024) – Beragampengetahuan

With a fund size of almost SGD $1 billion, the ABF SG Bond ETF is the go-to instrument to gain access to one of the world’s highest-yielding AAA-rated government bonds. 

Most recently, our Singapore domestic bond index tracker ABF Singapore Bond Index Fund has declared its dividend payout of SGD $0.0124 for January 2024.

Overview – ABF Singapore Bond Index Fund

As the first-ever exchange traded fund (ETF) bond fund in Singapore, it invests in the constituents of the iBoxx ABF Singapore Bond Index.

This means that it tracks a basket of high-quality bonds issued primarily by the Singapore government and quasi-Singapore government entities such as Temasek, SP Group, Land Transport Authority and Housing Development Board.

Its SGX listing date is on the 31 August 2005.

Traditionally, bond ETFs typically offer investors haven status amidst the market volatility such as the Covid-induced crash.

Looking at the chart below, ABF Singapore Bond Index Fund singlehanded dampened the volatility as equities tanked 20% to 30% at the most extreme.

Unfortunately, interest rate hikes undertaken by The Fed has crushed the total returns of the same ETF whereas VWRA and STI ETF have staged strong recoveries.

In the spirit of full transparency, I have to admit that although I used to hold ABF Singapore Bond Index ETF, I no longer do so no.

There is absolutely no reason to risk any exposure to volatility when I can lock in returns of more than 3% on up to $200,000 of my savings and emergency funds.

Singapore Savings Bonds have been offering 10-year returns of about 3% or more for the past six months, and it has taken up a significant portion of my available funds.

You might help this helpful: Read These 37 Things To Become An Expert On The Singapore Savings Bonds

For short-term idle funds, I am currently parking them with Fullerton SGD Cash Fund as well as Mari Invest as the underlying instrument.

You can read the comparison between Fullerton SGD Cash Fund and Mari Invest to learn which is the right tool for you.

Key information about the ABF SG Bond ETF

• Stock Code → A35
• Board Lot Size → 10
• Distribution Frequency → January and July
• Benchmark → iBoxx ABF Singapore Bond Index Total Return Series
• Total Expense Ratio : 0.24% p.a. (inclusive Management Fee and Trustee Fee)

ABF SG Bond ETF Dividend Payout (2.36% Yield)

I am extremely perturbed as to why distributions information cannot be found on Nikko AM Asia official webpage.

Isn’t that one of the most basic piece of information for any competent fund manager?

SGX (Corporate Action) is one of the best source of dividends information, and I’ll re-post it here for your convenience.

The ex-date for the January 2024 dividend payout was 2 January 2024, and the dividend distribution was paid out on 15 January 2024.

It is important to highlight that investors will only receive the upcoming dividend if they buy the ETF before the ex-dividend date.

On the ex-dividend date, the opening price will decline by the distribution amount because they will not receive the declared dividend payment.

Using The STI ETF In The Bogleheads 3 Fund Portfolio

The Bogleheads three-fund portfolio is a portfolio which uses only basic asset classes, usually —

• A domestic stock “total market” index fund
• An international stock “total market” index fund
• A bond “total market” index fund

What if I had invested equally into the following on 1 Jan 2020 before the pandemic happened?

• Global Equities $VWRA
• Singapore Equities $ES3
• Singapore Bonds $A35

We would have done OK even though it isn’t fantastic.

The superior performance of global equities would have saved the day and given us combined returns of 18%.

Are you still keeping your funds in ABF SG Bond ETF or putting them in other instruments? Let me know!

By the way, I used the exchange rate of 1 US Dollar to 1.3486 Singapore Dollar on 2 January 2020.

If you are interested in tracking your portfolio and creating your own charts like the one you see above, I am using StocksCafe by Evan, which you can try with a 1-month free trial.

Kevin started beragampengetahuan when his net worth languished at negative $25,755. His desire to turn things around led him to build passive income from investments and side hustles that pay for his daily expenses and vacations. You can learn more about Kevin here.