ABF Singapore Bond Index Fund Dividend (July 2024) | Turtle Investor – The Global Tofay

ABF Singapore Bond Index Fund Dividend (July 2024) | Turtle Investor - The Global Tofay Global Today

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, declared its dividend payout of SGD $0.0124 for July 2024, which is the exact same amount that was declared in 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.

The ABF Singapore Bond Index Fund listing date on the SGX is 31 August 2005.

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

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

Unfortunately, the Fed’s interest rate hikes have decimated the total returns of the same ETF, whereas VWRA and STI ETFs have staged strong recoveries.

Below is a chart which I have taken a screenshot of from StocksCafe.

ABF 1 | Turtle Investor
Sample Portfolio of VWRA (33%), STI ETF (33%) and ABF SG Bond (33%)
ABF 2 | Turtle InvestorABF 2 | Turtle Investor

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

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 with Singapore Savings Bonds.

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 and Mari Invest as the underlying instrument.

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

Key information about the ABF SG Bond ETF

  • Stock Code → A35
  • Bloomberg Ticker → SBIF SP
  • Board Lot Size → 1
  • 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 (2.38% Yield)

I am rather perturbed by the fact that distribution information is not available on Nikko AM Asia’s official webpage.

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

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

ABF 3 | Turtle InvestorABF 3 | Turtle Investor

The ex-date for the July 2024 dividend payout was 1 July 2024, and the dividend distribution will be paid out on 15 July 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 ABF SG Bond 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 – Vanguard FTSE All-World UCITS ETF
  • Singapore Equities – STI ETF
  • Singapore Bonds – ABF SG Bond ETF

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%.

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

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

Ending Thoughts

The ABF Singapore Bond Index Fund, with a significant size of nearly SGD $1 billion, offers access to high-yielding AAA-rated Singapore bonds. Here are three key points:

  1. Dividend stability: The ABF Singapore Bond Index Fund declared a dividend payout of SGD $0.0124 for July 2024, which is unchanged from January 2024, offering a yield of 2.38%.
  2. Performance in volatile markets: While the fund helped dampen volatility during the Covid-induced market crash, recent interest rate hikes have negatively impacted its total returns compared to equity-based ETFs.
  3. Alternative options: I am using alternatives like Singapore Savings Bonds for stable returns (over ten years) and cash funds like Fullerton SGD Cash Fund and Mari Invest for short-term idle funds.

ABF SG Bond Index Fund Resources

I Use StocksCafe To Manage My Portfolio

StocksCafe is a one-stop portfolio management platform that provides you with insights and tools for better investment decisions.

ABF 6 | Turtle InvestorABF 6 | Turtle Investor
Screenshot for one of my dividend portfolios

If you are interested in tracking your portfolio with a high-quality tool that is super affordable, I am using StocksCafe by Evan (click here to learn more). You get a 1-month free trial to see if the tool is a good fit before paying a single cent!

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