NikkoAM-ICBCSG China Bond ETF Announces Dividend Distribution for SGD Class Units

Nikko Asset Management Asia Limited has announced a dividend distribution for the SGD class units of the NikkoAM-ICBCSG China Bond ETF. Shareholders registered by the record date of January 3, 2025, will receive a dividend of S\$0.0117 per unit. The fund, listed on the Singapore Exchange Securities Trading Limited (SGX-ST), will distribute the dividend either directly to bank accounts or via cheque to addresses maintained in the Central Depository (Pte) Limited’s records.

Key dates for shareholders to note include:

• Ex-dividend date: January 2, 2025
• Record date: January 3, 2025
• Distribution payment date: January 15, 2025

An important consideration for investors is the Fund’s status as an Enhanced-Tier Fund, approved under the Enhanced-Tier Fund Tax Incentive Scheme by the Monetary Authority of Singapore on January 25, 2021. This status, effective from November 18, 2020, means distributions from tax-exempt income are also exempt from Singapore income tax for unitholders, potentially enhancing the net income received.

Despite these positives, shareholders should be aware of the investment risks. The value of units in the fund can fluctuate, and there is a possibility of losing the principal amount invested. The ETF may also experience differences in price performance on the SGX-ST compared to its net asset value, and there are risks of suspension or delisting from the SGX-ST.

This announcement could potentially impact the ETF’s share price, as the dividend distribution and tax-exempt status are significant factors for investors to consider.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult a financial adviser and review the fund’s prospectus and product highlights sheet before making investment decisions. Past performance is not indicative of future results.