Singapore bonds beat STI in 2015 so far

A bond index created by the Singapore Exchange (SGX) and Reuters tracking Singapore-dollar denominated bonds continues to hit new highs, outperforming the Straits Times Index (STI) for the week ended Jan 9, 2015.

The Singapore Fixed Income Indices (SFI) has gained 0.66 per cent to hit 120.32 points for the year to Jan 9, compared to a 0.79 per cent loss for the STI, said SGX in a weekly note.

There are currently no funds tracking the SFI, which comprises 62 per cent Singapore government bonds, 16 per cent statutory board bonds, and 22 per cent corporate bonds.

One popular exchange-traded fund (ETF) tracking Singapore government-related bonds is the ABF Singapore Bond Index Fund. It closed at S$1.167 on Monday, down 0.26 per cent for the year. However, it went ex-dividend on Jan 2 with a distribution of S$0.0305 per unit.