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FIXED INCOME bonds and preference shares

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St.Maximus
    11-Nov-2020 20:35  
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Good for you!
I suppose the equity fund was Nikko SG dividend fund? 

dc16888      ( Date: 11-Nov-2020 20:33) Posted:

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St.Maximus
    20-Oct-2020 20:34  
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Not much interests in bonds and preference shares? Any reasons? Anybody?
 
 
St.Maximus
    18-Oct-2020 18:41  
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I attach the article here from the main page.


During volatile market conditions like what we have experienced in 2020, it makes sense that some investors may prefer holding a large proportion of their investment portfolio in fixed income assets.

However, even if you want to invest in fixed income assets such as government and corporate bonds, it is important to hold a diversified portfolio. Investors can do so easily via fixed income ETFs

In this week' s edition of  4 Stocks This Week, we will highlight 4 fixed income ETFs that investors can invest in on the Singapore Exchange (SGX).

Phillip SGD Money Market ETF (SGX: MMS)



Listed earlier this month, the Phillip SGD Money Market ETF (SGX: MMS) is the first Singapore-domiciled money market ETF on SGX and the only money market ETF in South East Asia. The ETF aims to provide a similar return to the FTSE SGD 3-month SOR Index.

As a money market ETF, the Phillip SGD Money Market ETF invests only in short-duration debt instruments such as fixed deposits, government and corporate bonds and commercial bills with an average of 90 days to maturity. The annual yield is at about 0.52%

Read Also:  An Alternative To The STI ETF? Introducing The Phillip SING Income ETF

Nikko AM SGD Investment Grade Corporate Bond ETF (SGX: MBH)



For those who wish to invest in quality  corporate bonds  offered by quasi-sovereign entities in Singapore and high-quality companies, you can consider the Nikko AM SGD Investment Grade Corporate Bond ETF (SGX: MBH).

Denominated in Singapore Dollar, this ETF uses the iBoxx SGD Non-Sovereign Large Cap Investment Grade Index as its benchmark. Since the start of the year, the ETF has gone up by about 4.4% from 1.029 (2 Jan 2020) to 1.074 (16 Oct). Based on its current share price, the yield is at about 2.40%.

Read Also:  Complete Guide To Investing In Corporate Bonds In Singapore

XTrackers Singapore Government Bond UCITS ETF (SGX: KV4)



If you only want to invest in the triple-A bonds issued by the Singapore government, the XTrackers Singapore Government Bond UCITS ETF (SGX: KV4) is the ETF that you are looking for. This ETF basically invests only in bonds issued by the Singapore government with an average duration at 7.60 years.

While the ETF' s current yield is low at 0.78% (since this is an exceptionally low-risk ETF), it' s worth noting that given the low-interest-rate environment and market volatility in 2020, the ETF has done well in 2020. Since the start of the year, its price has gone up from 149.23 to 159.88 (as of 16 Oct). The year-to-date return is currently at 7.41%. Not bad for what is supposed to be a low-risk, low-return ETF.

ABF Singapore Bond Index ETF (SGX: A35)



Another very low-risk fixed income ETF, the ABF Singapore Bond Index ETF (SGX: A35) invests in SGD-denominated bonds issued by the Singapore government and quasi-government entities.

With an average duration of 8.45 years, the ETF gives a yield of about 1.28% based on its current price. Similar to the XT SingGovBonds, yield-to-date return for the ABF Singapore Bond Index ETF in 2020 has been good at 7.94%.

It appears that given the low-interest-rate environment and market volatility that we have experienced in 2020, fixed income ETFs in Singapore that invests in high-quality bonds have performed well, and they remain a safe place for investors to park their money while continuing to earn decent interest.

Read Also:  6 Investments In Singapore That Provide Guaranteed Principal And Returns

The post  4 Stocks This Week (Fixed Income ETFs) [16 Oct 2020] Phillip Money Market (SGX: MMS) Nikko AM Corporate Bonds (SGX: MBH) XT SingGovBonds (SGX: KV4) ABF Singapore Bond (SGX: A35)  appeared first on  DollarsAndSense.sg.


Contributed By: Dollars And Sense
 

 
St.Maximus
    18-Oct-2020 18:09  
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I set up this thread to discuss fixed income instruments such as bonds and preference shares. Their chief characteristic is fixed coupon/dividend payouts. Today there is a special report on some bond unit trusts/ETF on share junction main page entitled " 4 Stocks to watch" .
Can read and discuss?
 
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