Q&A Series: LionGlobal Short Duration Bond Fund (Active ETF SGD Class)

Q&A Series: LionGlobal Short Duration Bond Fund (Active ETF SGD Class): Attract regular income with a resilient portfolio.

In today’s environment of declining interest rates, investors are increasingly seeking alternatives to cash and short-term instruments such as Treasury bills (T-bills). As of 29 July 2025, the latest T-bill cut-off yield stands at just 1.77%, [1]prompting many to consider more efficient ways to deploy maturing T-bill proceeds and idle cash.

The LionGlobal Short Duration Bond Fund (Active ETF SGD Class) presents a timely opportunity to redeploy maturing T-bill proceeds and put idle cash to work in a diversified portfolio of short duration bonds. It features capital preservation, liquidity, and potential yield enhancement.

Bond investing has long been a cornerstone of portfolio stability. Yet for many retail investors, accessing high quality bonds has been challenging, often requiring large capital outlays, limited liquidity, and deep market expertise. The minimum investment amount for most Singapore corporate bonds is S$250,000. If you have S$1 million, you can at most buy 4 bonds but can’t build a diversified portfolio.

With the launch of this ETF, Lion Global Investors is making bond investing simpler, more flexible, and more accessible than ever before.

Introducing the LionGlobal Short Duration Bond Fund (Active ETF SGD Class)

The LionGlobal Short Duration Bond Fund (Active ETF SGD Class) is a listed share class of the LionGlobal Short Duration Bond Fund, a flagship strategy that has been actively managed since 1991. This ETF provides investors with exposure to a diversified portfolio of Singapore and global bonds, with a focus on short duration and total return. As of 31 July 2025, the fund manages approximately SGD 1.6 billion in assets.[2]

While the ETF adopts a different structure, it shares the same underlying portfolio as the original fund launched in 1991. This means investors benefit from the same proven investment strategy and track record, now delivered through the convenience of an exchange traded format.

Over the years, the fund has built a strong reputation among long term savers. The LionGlobal Short Duration Bond Fund Class A SGD (Dist) is also one of only 19 share classes included under both CPF Ordinary Account (OA) and Special Account (SA) schemes, demonstrating consistent performance and resilience across market cycles.

This ETF marks a market first milestone as the first listed share class of an unlisted fund on SGX, combining the benefits of active management with the accessibility and liquidity of exchange traded investing. Unlike traditional passive bond ETFs, this actively managed structure empowers the fund manager to respond dynamically to market conditions, credit developments, and interest rate movements, helping investors navigate uncertainty with confidence.

ETF Details

Source: Lion Global Investors. Data as of 31 July 2025.

We’ve seen interest rates fluctuate significantly in recent years. Why consider investing in short duration bonds now?

In today’s uncertain global environment, Singapore stands out as a safe and stable investment hub, backed by its AAA credit rating, strong currency, and geopolitical neutrality.

As interest rates fall, investors are increasingly seeking income, especially in stable currencies like the SGD.

The LionGlobal Short Duration Bond Fund is well-positioned to benefit from this environment. It holds bonds that were bought at higher coupon rates, allowing investors to benefit from:

• Enhanced income from existing high-coupon holdings
• Potential capital gains as bond prices rise in a falling rate environment

How has the fund performed historically, and what are its dividend characteristics?

Since its inception on 22 March 1991, the LionGlobal Short Duration Bond Fund has consistently outperformed its benchmarks, which are based on Singapore interest rate references that have evolved over time. As of 31 July 2025, the fund has delivered total annualised returns of 3.7% per annum[3], reflecting its long-term strength and disciplined investment approach.

Since adopting a short duration strategy in 2012, the fund has achieved positive returns in 13 out of the past 14 years, demonstrating resilience across various market cycles[4] (refer to LionGlobal Short Duration Bond Fund Performance slide below). It has also maintained a consistent quarterly dividend payout[5], making it a reliable source of income for investors seeking stability and yield.

The only decline occurred in 2022, when aggressive rate hikes by the United States Federal Reserve impacted global bond markets and all bond funds worldwide. After the series of rate hikes, the fund rebounded strongly in 2023.

What kind of bonds are included in the LionGlobal Short Duration Bond Fund (Active ETF SGD Class)?

The ETF invests in a diversified portfolio of high-quality, short-term bonds from both Singapore and global issuers. It is actively managed and may include a small allocation to carefully selected non-investment grade bonds to enhance returns. Most non-SGD exposures are hedged back to SGD, reaching 99.7%[6] SGD currency exposure to minimise currency risk.

What is the ETF’s sector composition and some of its top holdings?

As of 31 July 2025, the fund holds 227 bond securities. Key portfolio metrics include[7]:

• Weighted average yield to maturity: 3.18%
• Weighted average duration: 2.25 years
• Weighted average credit rating: A-

The portfolio spans a wide range of sectors and issuers, offering diversification and resilience across market conditions.

What are some key features of the LionGlobal Short Duration Bond Fund (Active ETF SGD Class)?

This ETF offers a unique combination of features that make it especially attractive in today’s market:

• Broader Exposure: Includes both Singapore and global bonds, with flexibility to hold sub investment grade securities
• Active Management: Managed by experienced professionals with a proven active management process
• Short Duration: Reduces sensitivity to interest rate fluctuations. Ideal in volatile market conditions
• Total Return Focus: Focus on generating total return of capital growth and income over the medium to long term through an actively managed portfolio of Singapore and international bonds, high quality interest rate securities and other related securities.

How does this ETF compare to other bond ETFs listed on SGX?

This ETF stands out for its short duration, active strategy, and diversified holdings.

ETF	Type	Focus	Holdings	Yield to Maturity	Duration	Distribution Frequency*
LionGlobal Short Duration Bond Fund (Active ETF SGD Class) Source: Lion Global Investors, 31 Jul 2025	Active ETF	Short-term bonds	Around 200 Singapore & global investment-grade bonds	3.18% as of 31 Jul 2025 in local currency yield terms and on unhedged Foreign exchange basis.	2.25 years as of 31 Jul 2025 Inclusive of cash & equivalents which are assumed to be zero duration.	Quarterly
Xtrackers II Singapore Government Bond UCITS ETF 1C Source: Xtrackers as of 22 Aug 2025	Passive ETF	Singapore government bonds	Around 20 Singapore government bonds	1.84% Yield to Worst as of 22 Aug 2025	8.94 years as of 22 Aug 2025 (Effective Duration)	Not Applicable
NikkoAM SGD Investment Grade Corporate Bond ETF Source: Nikko AM SGD Investment Grade Corporate Bond ETF | Nikko AM Asia as of 31 Jul 2025	Passive ETF	Long-term bonds	Around 130 SGD bonds	2.66% as of 31 Jul 2025 Weighted Average Yield to Maturity(%) is an average yield calculated by weighting each security presently held by the Fund at time of calculation with capitalisation and duration. Yield to Maturity and Yield to Call measures are used in the calculation for noncallable and callable bonds respectively. The figure is for reference only and would vary from time to time due to market conditions and it does not represent the fund/sub-fund's distribution yield or actual rate of return.	6.02 years as of 31 Jul 2025 Weighted Average Duration (years) is an average duration weighted with capitalisation, and the figure is for reference only and would vary from time to time due to market conditions.	Semi-Annually
ABF Singapore Bond Index Fund Source: ABF Singapore Bond Index Fund as of 31 Jul 2025	Passive ETF	Long-term government & quasi-government bonds	Around 70 Government & quasi-government bonds	2.19% as of 31 Jul 2025 Weighted Average Yield to Maturity(%) is an average yield calculated by weighting each security presently held by the Fund at time of calculation with capitalisation and duration. Yield to Maturity and Yield to Call measures are used in the calculation for noncallable and callable bonds respectively. The figure is for reference only and would vary from time to time due to market conditions and it does not represent the fund/sub-fund's distribution yield or actual rate of return.	8.72 years as of 31 Jul 2025 Weighted Average Duration (years) is an average duration weighted with capitalisation, and the figure is for reference only and would vary from time to time due to market conditions.	Semi-Annually
iShares USD Asia High Yield Bond ETF Source: iShares USD Asia High Yield Bond ETF | O9P as of 20 Aug 2025	Passive ETF	USD-denominated high yield bonds issued by Asian governments and Asian-domiciled corporations	Around 200 Asian high yield bonds	7.25% as of 20 Aug 2025 Yield to Maturity (YTM) is the discount rate that equates the present value of bond's cash flows with its market price (including accrued interest). The fund YTM is the weighted average of fund's individual bond holding YTMs based upon Net Asset Value ('NAV'). The measure does not include fees and expenses. For callable bonds, YTM is the Yield	2.56 years as of 20 Aug 2025 (Effective Duration) Effective duration is a measure of a fund's interest-rate sensitivity. Put simply, the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. So a fund with a duration of 10 years is twice as volatile as a fund with a five-year duration.	Quarterly

*Distributions are not guaranteed. Distributions may be made up of income, capital gains, and/or capital.

What is the difference between the ETF and the unit trust version of the fund?

Both products access the same portfolio, which has been actively managed since 22 March 1991. This is Singapore’s first fund with both unlisted and listed share classes that adopt the same active strategy.

For a simpler way, please refer to the below infographic:

While both offer access to the same strategy, ETFs provide greater liquidity, convenience, and cost-efficiency for investors

Any closing comments?

The LionGlobal Short Duration Bond Fund (Active ETF SGD Class) marks a significant milestone. It is Singapore’s first actively managed bond ETF, and the first listed share class of an existing fund with over 30 years of track record.

The fund is managed by Chu Toh Chieh, Head of Fixed Income and Multi-Asset Solutions at Lion Global Investors, with over 30 years of experience of fund management experience. Through this ETF, investors gain access to expertise in credit analysis, duration management and portfolio construction, which could help manage risk and enhance return potential.

This ETF is an Excluded Investment Product (EIP), making it accessible to all investors. It is open for subscription during the Initial Offering Period from 8 to 23 September 2025 at SGD 1.00 per unit, and will be listed on SGX from 29 September 2025.

With just SGD 1, investors can now access a professionally managed, diversified bond portfolio. Attract regular income[8] with a resilient portfolio.

Exclusive FSM promotion: Get S$10 for every S$10k invested (capped at S$200). Valid 8 Sep–31 Oct 2025. Cash and SRS subscriptions are both eligible for promotion after 29 Sep 2025 listing. Cash reward credited 6 weeks after 31 October 2025.

Disclaimer – Lion Global Investors Limited

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. It is for information only, and is not a recommendation, offer or solicitation to deal in any capital markets products or investments and does not have regard to your specific investment objectives, financial situation, tax position or particular needs.

The LionGlobal Short Duration Bond Fund (the “Fund”) is not like a typical unit trust offered to the public in Singapore. The Fund comprises both classes of units listed and traded on the Singapore Exchange (“SGX-ST”) and classes of units which are neither listed on the SGX-ST nor any other stock exchange.

You should read the prospectus and Product Highlights Sheet for the Fund, which is available and may be obtained from Lion Global Investors Limited (“LGI”) or any of the appointed Participating Dealers (“PDs”), agents or distributors (as the case may be) for further details including the risk factors and consider if the Fund is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to purchase units in the Fund. Applications for units in the listed or unlisted classes of the Fund must be made in the manner set out in the prospectus. Investments are subject to investment risks including the possible loss of the principal amount invested.

Investments in the Fund are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the Fund is not guaranteed and the value of units in the Fund and the income accruing to the units, if any, may rise or fall. Past performance, payout yields and payments as well as any predictions, projections, or forecasts are not necessarily indicative of the future or likely performance, payout yields and payments of the Fund. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. Any dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the Fund. Any references to specific securities are for illustration purposes and are not to be considered as recommendations to buy or sell the securities. It should not be assumed that investment in such specific securities will be profitable. There can be no assurance that any of the allocations or holdings presented will remain in the Fund at the time this information is presented. Any information (which includes opinions, estimates, graphs, charts, formulae or devices) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information or contained herein and seek professional advice on them. No warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The Fund may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for the purpose of efficient portfolio management. LGI, its related companies, their directors and/or employees may hold units of the Fund and be engaged in purchasing or selling units of the Fund for themselves or their clients.

The Fund is an actively managed fund. Please refer to the Prospectus for further details, including a discussion of certain factors to be considered in connection with an investment in the listed units of the Fund on the SGX-ST.

The listed units of the Fund are listed and traded on the Singapore Exchange (“SGX”), and may be traded at prices different from their net asset value, suspended from trading, or delisted. Such listing does not guarantee a liquid market for the units. You cannot purchase or redeem listed units in the Fund directly with the manager of the Fund, but you may, subject to specific conditions, do so on the SGX or through the PDs.

© Lion Global Investors Limited (UEN/ Registration No. 198601745D). All rights reserved. LGI is a Singapore incorporated company and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holding companies).