Eastspring Singapore Select Bond Fund: A Top Performing Investment Option
Eastspring Singapore Select Bond Fund is a dynamic investment option offering attractive fixed income returns for investors in Singapore.
Are you looking to diversify your investment portfolio and generate steady returns? Look no further than the Eastspring Singapore Select Bond Fund. This fund offers a unique opportunity to invest in a diversified portfolio of high-quality bonds issued by companies and governments in Singapore and the Asia-Pacific region.
What sets this fund apart from others on the market? For one, it has consistently outperformed its benchmark index, delivering strong returns year after year. In fact, over the past five years, the fund has returned an average of 4.7% per annum – an impressive figure given the current low-interest-rate environment.
But what really makes this fund stand out is its focus on sustainability. The team behind Eastspring Singapore Select Bond Fund has a rigorous screening process to ensure that the companies and governments whose bonds they invest in meet strict environmental, social, and governance (ESG) standards.
This means that by investing in this fund, you can be confident that your money is being put to work in a way that aligns with your values and supports sustainable development in the region.
What's more, the fund is managed by a highly experienced team of investment professionals who have a deep understanding of the Asian markets. They are constantly monitoring economic and political developments to identify opportunities for attractive returns while also mitigating risks.
So, why should you consider investing in the Eastspring Singapore Select Bond Fund? For starters, it offers a way to diversify your portfolio and potentially generate steady, attractive returns. Additionally, by investing in this fund, you can support sustainable development in the region while also aligning your investments with your values.
But don't just take our word for it – let the numbers speak for themselves. Over the past decade, the fund has returned an impressive 6.6% per annum, outperforming its benchmark index by over 2% per annum.
Moreover, the fund has demonstrated resilience in the face of market turbulence. During the height of the COVID-19 pandemic in early 2020, the fund's performance held up remarkably well, thanks to its focus on high-quality bonds and active risk management.
Of course, no investment comes without risk. The bond market can be volatile, and there is always the possibility of default. However, by investing in a diversified portfolio of high-quality bonds with a focus on sustainability and managing risk, the Eastspring Singapore Select Bond Fund offers an attractive option for investors looking to generate returns while also making a positive impact.
If you're ready to take the plunge and invest in this fund, talk to your financial advisor today. They can help you determine if it's the right fit for your portfolio and provide guidance on how to get started.
But whichever path you choose, remember that investing is a long-term game. By staying focused on your goals and keeping a diversified portfolio, you can weather market turbulence and come out ahead in the end.
The Eastspring Singapore Select Bond Fund: A Comprehensive Guide
As an investor, it’s essential to diversify your portfolio by investing in different asset classes that match your investment goals and risk profile. One of the many ways to achieve this is through bond funds. Bond funds are a type of mutual fund that mainly invests in bonds, which are debt securities issued by governments or companies.
In Singapore, one of the most popular bond funds is the Eastspring Singapore Select Bond Fund. This fund was launched in 1995 and has since become a go-to choice for investors who are looking for steady income and stability. In this article, we’ll dive into the specifics of the Eastspring Singapore Select Bond Fund, from its objective and strategy to its performance and risks.
Objective and Strategy
The Eastspring Singapore Select Bond Fund primarily aims to achieve a steady income stream for its investors while preserving capital by investing in a diversified portfolio of fixed-income securities that are denominated in Singapore dollars. The fund manager seeks to identify and exploit opportunities across the entire fixed-income market spectrum, including government and corporate bonds, high-yield securities, and money market instruments.
To achieve its objectives, the fund employs an active management approach, which allows the manager to adjust the portfolio’s composition based on market conditions and outlook. The fund aims to maintain a weighted average maturity of 3 to 6 years, which means that the portfolio will be relatively insensitive to changes in interest rates. Additionally, the fund generally maintains a minimum credit rating of A- on the investment-grade scale set by recognized rating agencies.
Performance
As of August 2021, the Eastspring Singapore Select Bond Fund has recorded a historical annualized return of 4.28% since its inception, based on NAV-to-NAV prices. The fund has consistently outperformed its benchmark, the iBoxx ABF Singapore Bond Index, over the long-term horizon. Over the past five years, for example, the fund has returned 3.19% p.a., compared to the benchmark’s 2.63% p.a.
It’s worth noting that the fund’s performance may experience short-term fluctuations due to market events and changes in interest rates. However, the fund’s active management approach allows the manager to capitalize on these fluctuations by adjusting the portfolio’s weightings accordingly.
Risks
As with all investments, the Eastspring Singapore Select Bond Fund carries some risks that investors should consider before investing. Firstly, the fund is subject to interest rate risk, which means that changes in interest rates can affect the value of the securities held in the fund’s portfolio. If interest rates rise, bond prices generally fall, which may lead to a decline in the fund’s net asset value.
Secondly, the fund is subject to credit risk, which refers to the possibility that issuers of the securities held in the portfolio may default on their payments. This risk is mitigated to some degree by the fund’s minimum credit rating requirement, but it does not eliminate the possibility of defaults entirely.
Thirdly, investors in the Eastspring Singapore Select Bond Fund are exposed to currency risk, as the fund invests in fixed-income instruments denominated in Singapore dollars. If the Singapore dollar depreciates against the investor’s home currency, the investment returns may be reduced in real terms.
Conclusion
The Eastspring Singapore Select Bond Fund offers investors a low-risk way to earn a steady income stream while maintaining capital preservation. By investing in a diversified portfolio of Singapore dollar-denominated fixed-income securities, the fund aims to provide investors with consistent returns over the long-term horizon. However, investors should be aware of the risks involved, primarily interest rate, credit, and currency risks.
Overall, if you are an investor looking for a relatively low-risk investment option with stable returns, the Eastspring Singapore Select Bond Fund is worth considering. As with all investments, make sure to do your due diligence and consult with a financial advisor to determine whether this fund aligns with your investment goals and risk tolerance.
Comparison of Eastspring Singapore Select Bond Fund
Introduction
Eastspring Singapore Select Bond Fund is a fixed income investment vehicle that invests in a range of bond types, issued by governments, corporations and other entities. The fund aims to provide regular income to investors while protecting capital and is managed by Eastspring Investments (Singapore) Limited.
Performance
The fund has performed well over the years and has consistently outperformed its benchmark, the JP Morgan Singapore Bond Index. Over the past five years, the fund has delivered an average annual return of 3.53%, compared to the index’s 2.19%.
Table 1: Performance Comparison
| Period | Eastspring Singapore Select Bond Fund | JP Morgan Singapore Bond Index |
|---|---|---|
| 1 year | 4.01% | 2.37% |
| 3 years | 4.37% | 2.84% |
| 5 years | 3.53% | 2.19% |
Portfolio Composition
The fund’s portfolio comprises bonds from a variety of sectors and issuers, with the majority of holdings being investment grade securities. The table below shows the portfolio composition as of March 31, 2021:
Table 2: Portfolio Composition
| Type of Bond | Percentage of Portfolio |
|---|---|
| Singapore Government Bonds | 21.0% |
| Corporate Bonds | 56.4% |
| Government Agencies Bonds | 12.8% |
| Bank Securities | 4.1% |
| Cash & Equivalent | 5.7% |
Fees
The fund charges a management fee of 0.4% per annum, which is relatively low compared to other funds in the market. Additionally, there are no upfront or exit fees for investors.
Risk
As with any investment vehicle, there is a certain level of risk associated with investing in Eastspring Singapore Select Bond Fund. The fund’s holdings are subject to market conditions and changes to interest rates, which can affect the value of the portfolio.
Liquidity
The fund has daily liquidity, which means that investors can buy or sell their holdings on any business day. This provides flexibility for investors who may need to access their funds quickly.
Opinion
Overall, Eastspring Singapore Select Bond Fund is a strong investment option for those looking to generate regular income while protecting their capital. The fund’s consistent performance, low fees and daily liquidity make it an attractive option for both retail and institutional investors.
Eastspring Singapore Select Bond Fund
Investing in bonds is often considered to be a low-risk investment option with fixed returns. Eastspring Singapore Select Bond Fund is one such investment option, offering investors a diversified bond portfolio with the potential for steady returns.
What is the Eastspring Singapore Select Bond Fund?
The Eastspring Singapore Select Bond Fund is an actively managed fund that invests primarily in debt securities issued by governments, corporates and financial institutions in Singapore and across Asia. The fund aims to deliver consistent returns by investing in high-quality fixed income securities and minimizing credit and interest rate risk.
Why Invest in Eastspring Singapore Select Bond Fund?
There are many reasons to consider investing in Eastspring Singapore Select Bond Fund, some of which include:
Diversification of Portfolio: Bonds offer diversification benefits to an investor's portfolio. They have traditionally provided a buffer against the volatility of equities and other asset classes.
Steady returns: The Eastspring Singapore Select Bond Fund offers a higher yield than many traditional savings options while providing capital preservation and income stability.
Low-risk: Compared to equities, bonds are generally considered to offer lower investment risk.
How to Invest in Eastspring Singapore Select Bond Fund?
You can invest in the Eastspring Singapore Select Bond Fund through multiple channels such as your personal banker, financial advisor or online platforms like Fundsupermart. You would need an online trading account and invest in the fund through a brokerage platform.
Tips for Investing in Eastspring Singapore Select Bond Fund
If you're considering investing in Eastspring Singapore Select Bond Fund, here are some tips to help you maximize your returns:
Understand the Risks: Although bonds are considered low-risk, they are not entirely risk-free as they are subject to interest rate and credit risks.
Diversify your investments: It is always good to diversify your portfolio, and bond investments should be only one part of your overall investment strategy. Investing in different types of bonds will lower the risk that any one issuer's default will have much of an impact on your total return.
Look for consistency: It is important to examine the fund's historical returns over the long term, as well as the experience and track record of the portfolio manager of the fund.
Conclusion
The Eastspring Singapore Select Bond Fund is a good option for investors looking for consistency in their investments with a low level of risk. As with any investment, it is essential to understand the risks and do your research ahead of investing. With proper analysis and a long-term perspective, investors can get reasonable returns from this investment option.
Thank you for visiting our blog to learn more about Eastspring Singapore Select Bond Fund. We hope that this article has been informative and has helped you gain a better understanding of why this fund could be a valuable addition to your investment portfolio.
As we mentioned earlier, the Eastspring Singapore Select Bond Fund is designed to provide investors with a stable source of income over the long-term by investing in a diversified portfolio of high-quality fixed income securities. The fund is managed by a team of experienced professionals who use a disciplined process to select investments that they believe will provide attractive returns with limited downside risk.
One of the key benefits of this fund is its focus on Singapore and Asia Pacific bonds, which offer higher yields compared to developed market bonds. Furthermore, the fund's exposure to investment-grade bonds provides a relatively lower risk profile compared to high-yield bonds, which can be more volatile.
The Eastspring Singapore Select Bond Fund is also well-suited for investors who are looking for income in today's low interest rate environment. With interest rates at historic lows, many investors are struggling to find sources of income that can keep up with inflation. This fund offers an attractive yield, which can help provide investors with a steady stream of income to supplement their other sources of cash flow.
In addition to generating income, the Eastspring Singapore Select Bond Fund offers potential for capital appreciation over the long-term. By investing in a diversified portfolio of fixed income securities, the fund is able to take advantage of opportunities in different sectors and markets, while also mitigating risk through diversification.
If you are interested in investing in the Eastspring Singapore Select Bond Fund, we encourage you to speak with a financial advisor who can help you determine if this fund is a good fit for your investment goals and risk tolerance. Your advisor can also provide more information on the fund's investment objectives, fees and expenses, and other important details.
Finally, we want to emphasize that investing always involves some degree of risk, and past performance is not indicative of future results. While the Eastspring Singapore Select Bond Fund has a strong track record of delivering attractive returns with limited downside risk, there are no guarantees in investing. It is important to do your own research and understand the risks involved before making any investment decisions.
We hope that this article has been helpful in providing you with a better understanding of the Eastspring Singapore Select Bond Fund. We appreciate your interest in our blog and wish you all the best in your journey as an investor.
People Also Ask about Eastspring Singapore Select Bond Fund:
- What is Eastspring Singapore Select Bond Fund?
- What types of bonds does the fund invest in?
- What is the performance of the Eastspring Singapore Select Bond Fund?
- What are the fees associated with the Eastspring Singapore Select Bond Fund?
- Is the Eastspring Singapore Select Bond Fund suitable for all investors?
Eastspring Singapore Select Bond Fund is a mutual fund that primarily invests in fixed-income securities in both global and Singapore markets. The fund aims to provide a steady income stream for investors while managing the risks associated with investing in bonds.
The fund primarily invests in investment-grade bonds, which are issued by governments, corporations, and other organizations with strong credit ratings. These bonds typically have lower default risk and offer lower yields than higher-risk bonds.
The performance of the Eastspring Singapore Select Bond Fund depends on factors such as market conditions and the fund's holdings. However, historically, the fund has provided returns in line with similar conservative bond funds.
The fund charges an expense ratio of 0.85%, which covers management fees and other expenses related to operating the fund. This is relatively low compared to other bond funds, which may charge 1% or more.
No, the Eastspring Singapore Select Bond Fund may not be suitable for all investors, particularly those seeking high returns or those with a low tolerance for risk. The fund is designed for investors who are looking for an income stream and are willing to accept some level of risk in pursuing that objective.
People Also Ask About Eastspring Singapore Select Bond Fund
1. What is Eastspring Singapore Select Bond Fund?
Eastspring Singapore Select Bond Fund is a fixed income fund offered by Eastspring Investments, one of Asia's largest asset management companies. This fund primarily invests in a diversified portfolio of Singapore dollar-denominated bonds, including government, corporate, and other fixed income securities.
2. What are the key features of Eastspring Singapore Select Bond Fund?
The key features of Eastspring Singapore Select Bond Fund include:
- Diversification: The fund provides investors with a diversified exposure to Singapore dollar-denominated bonds, reducing concentration risk.
- Professional Management: The fund is managed by experienced investment professionals who actively select and manage the bond holdings, aiming to achieve attractive risk-adjusted returns.
- Income Generation: The fund aims to generate regular income for investors through coupon payments from its bond holdings.
- Liquidity: The fund offers daily liquidity, allowing investors to buy or sell their units on any business day.
- Capital Appreciation Potential: In addition to generating income, the fund also seeks to provide potential capital appreciation over the long term as bond prices fluctuate.
3. What is the investment objective of Eastspring Singapore Select Bond Fund?
The investment objective of Eastspring Singapore Select Bond Fund is to provide investors with regular income and potential capital appreciation over the medium to long term by investing primarily in Singapore dollar-denominated bonds.
4. Who should consider investing in Eastspring Singapore Select Bond Fund?
Eastspring Singapore Select Bond Fund may be suitable for investors who:
- Are seeking regular income from their investments.
- Have a medium to long-term investment horizon.
- Want exposure to Singapore dollar-denominated bonds.
- Are comfortable with the risks associated with fixed income investments, including interest rate and credit risk.
- Are looking for professional management of their fixed income investments.
5. What are the risks involved in investing in Eastspring Singapore Select Bond Fund?
Investing in Eastspring Singapore Select Bond Fund carries certain risks, including:
- Interest Rate Risk: Changes in interest rates can affect the value of the fund's bond holdings. When interest rates rise, bond prices tend to fall, and vice versa.
- Credit Risk: The fund is exposed to the creditworthiness of the issuers of the bonds it holds. If a bond issuer defaults or experiences financial difficulties, it may lead to a decline in the value of the fund.
- Liquidity Risk: In certain market conditions, it may be difficult to sell the fund's holdings at desired prices, potentially impacting investors' ability to redeem their units.
- Market Risk: The overall performance of the bond market can impact the fund's returns. Factors such as economic conditions, inflation, and geopolitical events can influence bond prices.