LionGlobal Short Duration Bond Fund – Active ETF (SBO/SBV) Deep Dive

Listing Date: 29 Sep 2025

Counters: SBO (SGD) & SBV (USD)

Board lot: 1 unit

Distributions: Quarterly (discretionary)

1) Quick Summary

The LionGlobal Short Duration Bond Fund (Active ETF) is set to list on 29 Sep 2025 on SGX-ST with the counters SBO (SGD) and SBV (USD). It is actively managed and primarily invests in a globally diversified portfolio of bonds and related instruments. The fund has a target duration of < 4, making it suitable for investors who want relatively low interest-rate sensitivity.

2) What It Invests In

The LionGlobal Short Duration Bond Fund primarily invests in a globally diversified portfolio of bonds and related interest-rate securities. Here’s a breakdown of the key investment categories:

• Government and Corporate Bonds: The fund invests in high-quality government and corporate bonds across developed and emerging markets. These may include sovereign bonds, municipal bonds, and bonds issued by financial and non-financial corporations.
• Investment-Grade and Sub-Investment-Grade Bonds: While the fund primarily targets investment-grade bonds, it also has the flexibility to invest in sub-investment-grade bonds, which offer higher yield potential but come with increased credit risk.
• Floating Rate Instruments: To manage interest-rate risk, the fund may invest in floating-rate bonds, where the coupon rate is adjusted periodically in line with benchmark interest rates.
• Money Market Instruments: The fund also holds short-term money market instruments like certificates of deposit (CDs), commercial paper (CP), and treasury bills (T-bills) to maintain liquidity and manage short-term interest rate exposure.
• Interest Rate Futures and Derivatives: The fund actively manages its interest-rate risk by using interest rate futures, options, and other derivatives. These instruments help mitigate the impact of interest rate fluctuations on the portfolio’s value.
• Global Diversification: The fund is globally diversified, with investments in both developed markets (such as the US, EU, and Japan) and emerging markets. This diversification helps spread risk and capture returns from various economies and interest rate environments.

Fund’s Duration Strategy: The fund has a “short duration” mandate, which means it focuses on bonds with shorter maturities (typically under 4 years). This helps limit its exposure to interest rate changes and reduces the overall volatility of the portfolio.

Flexible Allocation: While the fund aims for stability and income, it has the flexibility to adjust allocations based on market conditions and the manager’s views on interest rates and credit risks. The goal is to achieve attractive returns while managing risk.

3) Trading & iNAV

The fund will trade on SGX in both SGD (SBO) and USD (SBV). The indicative NAV (iNAV) will be updated every 15 seconds during SGX hours. Retail investors can buy the fund in board lots of 1 unit.

4) Fees

• Management fee: 0.25% p.a.
• Trustee fee: 0.02% to 0.01% based on assets under management.
• Brokerage fees and SGX fees are applicable when trading on SGX (market rates, clearing fees, and access fees).

5) Key Risks

• Interest Rate Risk: Though the fund aims for short duration, bond prices can still fluctuate due to rate changes.
• Credit Risk: The fund may hold sub-investment-grade bonds, which can be riskier in volatile markets.
• Market Price vs NAV: The market price can deviate from the NAV, especially in volatile periods.

6) How to Buy

The LionGlobal Short Duration Bond Fund can be bought through SGX in board lots of 1 unit. Simply search for SBO (SGD) or SBV (USD) on your brokerage platform and place a limit order. Note that brokerage fees and SGX access fees will apply.

7) Pros & Cons

Pros:

• Low duration (less interest-rate sensitivity)
• Actively managed for better risk-adjusted returns
• Quarterly distributions (discretionary)
• Low management fee (0.25% p.a.)

Cons:

• Sub-investment-grade exposure could increase credit risk
• Price may deviate from NAV, especially when trading volume is low
• Distributions are discretionary and not guaranteed

8) How to Apply

If you wish to apply for the LionGlobal Short Duration Bond Fund, you can do so through the following banks in Singapore:

• DBS/POSB: Apply via ATM, digibank, or in-branch services. You will need a DBS/POSB account with internet banking access.
• OCBC: Apply via ATM, OCBC Internet Banking, or the OCBC mobile app. A minimum application amount may apply depending on the bank’s procedures.
• UOB: Apply via UOB Personal Internet Banking or at UOB branches. You can apply for units in either the primary or secondary market through your account.

Note: For the public offer, the application window will be open from the listing date. Ensure you check with the banks for any specific cut-off times and additional fees. You can apply using CPF (if eligible) via your CPF Investment Account at these banks as well.

9)Apply/Buy?

This fund is a solid choice for those looking for low-duration bond exposure with active management and potential quarterly income. it is recommende applying if you are comfortable with a small amount of credit risk and understand that distributions are not guaranteed. Be mindful of potential market price deviations from NAV at launch, especially if trading liquidity is low.

Apply if: You’re seeking an actively managed, short-duration bond ETF with low fee exposure and occasional distributions.

Skip or Wait if: You prefer pure investment-grade exposure and are concerned about short-term price/NAV discrepancies.

10) FAQ

Is this an index fund?

No, this is an actively managed ETF, meaning the fund manager makes decisions based on market conditions.

What are the SGX counters and board lot?

The counters are SBO for SGD and SBV for USD. The board lot is 1 unit.

How often will I see the portfolio holdings?

The fund publishes its full portfolio holdings monthly with a one-month lag, and iNAV is updated every 15 seconds during SGX hours.