In an era defined by low interest rates, finding ways to make your money work harder is no easy task. Recent Singapore Government Treasury Bills and Savings Bonds reveal frustrating yields, with rates hovering just above 1.7%. That’s far from enticing, especially when you consider the long-term options yielding barely above 2%.

The Bond Investment Dilemma

Despite their potential for better returns, traditional bonds often remain out of reach for individual investors due to high minimum purchase amounts, which can start at S$250,000. This reality makes it difficult for many to create a diversified bond portfolio.

Introducing Singapore's First Active Bond ETF

Enter the LionGlobal Short Duration Bond Fund (Active ETF SGD Class) — a groundbreaking opportunity that opens the doors to bond investments for everyone. Launched on 22 March 1991 and now listed as an ETF on the SGX, investors can buy in for as little as S$1 per unit.

This innovative fund is Singapore's first actively managed bond ETF, distinguished by its skilled management team tracing strategic investment paths unlike traditional passive ETFs. Here, expert credit selection and portfolio management take center stage.

A Safe Haven with Attractive Returns

As of 31 July 2025, the LionGlobal Short Duration Bond Fund was showing a promising weighted yield to maturity of 3.18% and maintains a solid credit rating of A-. It boasts more than 200 bonds in its portfolio, delivering diversification that individual investors struggle to achieve on their own.

Minimizing Risk with Strong Currency Protection

While some investors may seek higher yields from USD-denominated bonds, this exposes them to currency volatility. Fortunately, the LionGlobal fund keeps 99.7% of its assets in SGD, ensuring that its 3%+ annualized returns are safe from forex fluctuations.

Stable Income, Lower Volatility

With an average duration of just 2.25 years, this fund minimizes the risks associated with long-term investing, appealing to those seeking stable income without major price swings. On top of that, it plans to declare dividends quarterly, all while keeping the management fee competitive at just 0.25%.

How to Get Involved

The Initial Offer Period (IOP) runs from 8 to 23 September 2025, with trading commencing on 29 September. Subscriptions can be made through various participating dealers, and rewards are available for early investors.

Conclusion: A Compelling Investment Opportunity

In summary, the LionGlobal Short Duration Bond Fund stands out as a formidable option for investors seeking reliable returns in a low-yield world. Its unique blend of professional management, low entry cost, and currency stability make it an attractive choice for both seasoned and new investors alike.