Nikko AM Asia Announces Dividend for ABF Singapore Bond Index Fund

Nikko Asset Management Asia Limited has announced a dividend distribution for the ABF Singapore Bond Index Fund, an exchange-traded fund listed on the Singapore Exchange Securities Trading Limited. Shareholders will receive a dividend of S\$0.0126 per unit, with important dates to note: the ex-dividend date is January 2, 2025, the record date is January 3, 2025, and the distribution payment date is set for January 15, 2025.

Investors should be informed that the dividends distributed by the Fund will not be subject to Singapore withholding tax, and individuals not deriving income through Singapore-based partnerships or businesses will not be taxed on these dividends. This tax advantage may be a factor influencing the attractiveness of the Fund to individual investors.

Additionally, investors are reminded that investments in the Fund carry inherent risks, including potential losses of the principal amount invested. The Fund may also engage in financial derivatives, which can impact the value of the units and income.

It is crucial for investors to understand that the performance of the Exchange Traded Fund (ETF) on the SGX-ST may differ from its net asset value per unit, and the ETF could be suspended or delisted, which might affect liquidity. The ETF operates differently from typical unit trusts, with units only able to be created or redeemed in large quantities by participating dealers.

Shareholders should also be aware of the interest rate framework under the Central Provident Fund (CPF) Investment Scheme, influencing investment decisions for CPF funds.