In an era where interest rates are strikingly low, savvy investors are on the lookout for opportunities to make their money work harder. A prime example is the Singapore Government Treasury Bill issued recently, revealing a cut-off yield of just 1.77%. The latest offerings in Singapore Savings Bonds aren't much better, with a meager first-year rate of 1.71%.

Even when we consider long-term investments, such as the 30-year Singapore Government bonds, the yields hover around a disappointing 2.11%. Gone are the days of 4% returns from T-bills; we find ourselves firmly entrenched in a low-yield landscape.

Introducing a Game-Changer in Bond Investment!

Enter the LionGlobal Short Duration Bond Fund (Active ETF SGD Class), a pioneering investment vehicle that aims to provide better returns amidst this climate. Since its inception on March 22, 1991, this fund has impressively achieved annualized returns of 3.5% and total returns of an astounding 227.3%. But don't be fooled—past performance doesn't guarantee future outcomes.

Accessibility Meets Expertise

Understanding bonds can be tricky, especially for individual investors who may find high-quality bonds financially out of reach. Typically, buying corporate bonds requires a substantial capital investment—often swathes of over S$250,000 per bond. With S$1 million, you could only buy four bonds, which doesn't contribute to a sufficiently diversified portfolio.

LionGlobal's innovative approach presents a more accessible option. It’s Singapore's first actively managed bond ETF, allowing investors to enter the bond market starting from just S$1. This ETF is tailored for individuals, offering a route to bond investing that's smart, strategic, and expertly managed.

Why Choose This Bond ETF?

With more than 200 bonds under its wing, this fund not only promises higher returns but also boasts a robust credit rating (A-) and a weighted yield to maturity of 3.18%. Unlike passive ETFs that merely track indexes, this Active ETF is overseen by seasoned investment professionals who excel in credit selection and portfolio management.

Worried about currency risks? While the ETF holds a small percentage (18.2%) in USD-denominated bonds, it effectively hedges foreign currency exposure, ensuring that around 99.7% of its assets are SGD-based. This way, investors enjoy the benefits of stable SGD returns with minimal forex risk.

A Stress-Free Investment Experience

The LionGlobal Short Duration Bond Fund also focuses on shorter maturities with an average duration of just 2.25 years, significantly reducing market volatility and appealing to those seeking low-risk options.

Moreover, the fund plans to distribute dividends quarterly and maintains a competitive management fee of only 0.25%.