SGX Stock Exchange today welcomed the listing of the Amova Asia Credit Index ETF, expanding the suite of fixed income ETFs available to investors. The listing forms part of SGX Stock Exchange’s broader strategy to put in place a range of ETFs that can form low-cost building blocks for portfolio diversification.
Managed by Amova Asset Management Asia Limited (Amova), the ETF tracks the Bloomberg Asia Ex-Japan USD Credit Index and offers diversified exposure to more than 1,000 US dollar-denominated bonds issued by corporates, sovereigns and government-related entities across Asia ex-Japan. Investment-grade credit accounts for more than 80% of the underlying index.
The ETF is available in USD (SGX: B96) and SGD-hedged (SGX: B95) classes, giving investors access to the Asian US dollar credit market with a choice of currency exposure. The SGD-hedged class is designed to mitigate the impact of exchange-rate fluctuations between the Singapore and US dollars.
Ng Yao Loong, Head of Global Financial Markets, SGX Group, said, “Asia’s credit markets offer investors valuable opportunities for income and diversification. Investors need trusted, transparent and efficient tools to access these opportunities and manage risk. Today’s listing advances our ambition to build a more connected marketplace for Asian credit and rates, while deepening our longstanding partnership with Amova.”
Eleanor Seet, President and Head of Asia ex-Japan, Amova Asset Management, said, “For the clients we serve, currency can matter as much as credit. The Amova Asia Credit Index ETF is the first SGD-hedged Asia credit ETF on SGX. Offered alongside a USD share class, it lets Singapore investors hold the same Asia credit exposure in the currency that suits their portfolio. This listing builds on our longstanding partnership with SGX and our shared commitment to deepening Singapore's fixed income ETF market.”
The Amova Asia Credit Index ETF joins SGX Stock Exchange’s range of income-focused ETFs across asset classes. Following this listing, SGX offers 55 ETFs with combined assets under management at S$21 billion.
