Amova SGD Investment Grade Corporate Bond Index ETF: 2025 Semi-Annual Financial Analysis
The Amova SGD Investment Grade Corporate Bond Index ETF (formerly the Nikko AM SGD Investment Grade Corporate Bond ETF) has released its semi-annual financial report for the period ending 31 December 2025. This analysis covers key financial metrics, historical performance, portfolio allocation, expense and turnover ratios, and other notable fund activities relevant to investors.
Key Financial Metrics
| Metric |
Current Period
(31-Dec-2025) |
Previous Period
(30-Jun-2025) |
Same Period Last Year
(31-Dec-2024) |
YoY Change |
QoQ Change |
| Net Asset Value (NAV) |
S\$760.05M |
S\$782.84M |
N/A |
N/A |
-2.9% |
| Total Return (after tax) |
S\$15.59M |
S\$49.68M
(FY2025 full year) |
S\$23.42M |
-33.4% |
N/A |
| Expense Ratio |
0.26% |
N/A |
0.26% |
No change |
N/A |
| Portfolio Turnover Ratio |
35.24% |
N/A |
13.88% |
+21.36pp |
N/A |
| Distributions |
S\$12.13M |
S\$22.47M
(FY2025 full year) |
N/A |
N/A |
N/A |
| Units Created/(Cancelled) |
(26.24M) |
+169.91M |
N/A |
N/A |
N/A |
Historical Performance Trends
| Period |
ETF Return (%) |
Benchmark Return (%) |
| 3 months |
-1.00 |
-0.95 |
| 6 months |
1.74 |
1.97 |
| 1 year |
5.91 |
6.43 |
| 3 years (annualized) |
6.91 |
7.27 |
| 5 years (annualized) |
2.05 |
2.37 |
| Since Inception (annualized) |
2.94 |
3.31 |
Returns over the short-term (3 to 6 months) have been negative to mildly positive, in line with the benchmark. Over longer periods, the ETF has closely tracked its benchmark, though it has slightly underperformed across all periods.
Portfolio Allocation and Credit Quality
The portfolio remains highly diversified, with substantial exposure to Singapore (71.7% of assets), and the rest spread across Australia, Europe, Hong Kong, and Canada. The largest sector allocations are Banking (29.6%), Government (21.9%), and Finance (12.9%). Credit quality is robust, with 37% of assets in Aaa-rated instruments. However, 19.4% of the portfolio is in non-rated securities (supported by internal or other credit agency ratings).
Top 10 Holdings (as of 31 December 2025)
| Security |
Fair Value (S\$) |
% of NAV |
| Temasek Financial (I) Limited 2.8% 17/08/2071 |
24,280,061 |
3.19% |
| HSBC Holdings PLC 5.3% 14/03/2033 FRN |
13,950,841 |
1.84% |
| Singtel Group Treasury Private Limited 3.3% Perpetuity |
12,985,854 |
1.70% |
| HSBC Holdings PLC 5.25% 27/06/2032 FRN |
12,478,387 |
1.65% |
| AIA Group Limited 3.58% 11/06/2035 |
11,064,181 |
1.45% |
| Temasek Financial (I) Limited 4.2% 02/08/2050 |
10,903,660 |
1.43% |
| HSBC Holdings PLC 4.75% 12/09/2034 FRN |
10,866,000 |
1.43% |
| ABN AMRO Bank N.V. 5.5% 05/10/2032 FRN |
10,464,000 |
1.38% |
| HSBC Holdings PLC 5.3% 26/03/2034 FRN |
9,908,878 |
1.30% |
| NTUC Income Insurance Co-Operative Limited 3.1% 20/07/2050 |
9,883,132 |
1.30% |
Expense and Turnover Ratios
The total expense ratio remains competitive at 0.26%, unchanged from the previous year. Notably, the portfolio turnover ratio has increased sharply to 35.24% from 13.88% a year ago, indicating a much higher level of trading activity. This may reflect efforts to reposition the portfolio in response to market conditions or index changes.
Fund Flows and Related Party Transactions
The period saw net unit redemptions, with S\$280.48 million units created and S\$306.72 million units cancelled. There are no reported borrowings, use of derivatives, securities lending, or investments in other funds. Bank balances are maintained with DBS Bank Limited, a related party to the Trustee. No soft dollar commissions or arrangements were reported.
Dividend/Distribution Summary
The fund distributed S\$12.13 million during the half-year, compared to S\$22.47 million for the prior full year. Distributions appear consistent with the income earned and portfolio growth.
Conclusion and Investor Recommendations
The Amova SGD Investment Grade Corporate Bond Index ETF continues to deliver stable returns with a strong credit profile and broad sector and geographic diversification. The ETF slightly underperforms its benchmark but remains a low-cost, index-based fixed income vehicle suitable for investors seeking SGD-denominated investment grade exposure.
The increased portfolio turnover indicates active portfolio management, potentially in anticipation of market changes or to optimize index tracking. No material issues, such as legal disputes, asset revaluations, or exceptional earnings/expenses, are present.
- If you currently hold this ETF: The fund remains suitable for core fixed income allocation. Consider holding if your investment horizon matches a medium to long-term outlook and you seek steady income with relatively low volatility.
- If you do not currently hold this ETF: Investors seeking SGD-denominated investment grade exposure with low fees may consider adding the ETF as part of a diversified portfolio, especially given its robust credit quality and yield profile.
Disclaimer: This analysis is based strictly on the disclosed financial statements. It does not constitute personalized financial advice. Investors should review the official prospectus and consult a financial adviser before making investment decisions.
View Amova SGD IGBond ETF Historical chart here
