Traders who want to trip on the expansion of the Singapore inventory market now have extra choices to select from, as European asset supervisor Amundi has simply launched their fund. This makes Amundi the third participant to trace the Singapore’s benchmark Straits Instances Index (STI) to enter the area, and the primary unit-trust-based index fund monitoring the STI.
However for knowledgeable buyers, how does the latest Amundi Singapore Straits Instances Index Fund examine to current choices? And does it make sense for us to speculate there as a substitute of accessing it straight on the Singapore Trade (SGX)?
That is the query I requested myself when it was introduced earlier this month that Singapore-based robo-advisor Endowus has partnered with asset supervisor Amundi to launch the Amundi Singapore Straits Instances Index Fund.
How one can put money into the Straits Instances Index (STI)
The Straits Instances Index (STI) is made up of the 30 largest blue-chip firms listed in Singapore, and customarily serves as a benchmark index for Singapore’s inventory market returns. It has traditionally provided a good dividend yield than different regional bourses, with decrease volatility than world fairness benchmarks attributable to Singapore’s strong banking, actual property, telecommunications, and industrial sectors.
Previous to this, for those who had been an investor who wished to get publicity to the efficiency of the STI, you possibly can purchase both one of many two Trade Traded Funds (ETFs) right here – the SPDR STI ETF or the NikkoAM Singapore STI ETF:
- The SPDR Straits Instances Index ETF was listed in 2002. Between January 2020 to July 2025, its belongings beneath administration elevated by 131% to $1.92 billion.
- The Nikko AM Singapore STI ETF was listed in 2009. Between Jan 1, 2020, and July 14, 2025, its belongings beneath administration elevated by 195% to $973 million.
Traders who regarded primarily at AUM dimension are likely to favour the SPDR Straits Instances Index ETF, whereas buyers preferring a extra native fund supervisor normally gravitated in the direction of the Nikko AM Singapore STI ETF. In my case, I selected the latter.
So, is the latest Amundi Singapore Straits Instances Index Fund value contemplating?
What to know earlier than you put money into the Amundi Singapore Straits Instances Index Fund
EndowUs states that the Amundi Singapore STI Fund has the bottom whole expense ratio (TER) when in comparison with the opposite STI ETFs within the markets proper now.
Take pleasure in low-cost entry to diversification with the Amundi Singapore Straits Instances Fund providing the bottom whole expense ratio amongst friends, with a administration price of simply 0.15% p.a., and no transaction or gross sales costs. Out there for Money and SRS investments.
– EndowUs
That is true, however there are some things you need to observe.
Firstly, whereas the administration price of 0.15% p.a. is certainly the bottom amongst different STI funds, buyers utilizing the EndowUs platform should pay an extra recurring EndowUs price starting from 0.15% – 0.6% yearly.
Therefore, if price is your predominant concern, then shopping for one of many 2 STI ETFs on SGX straight could be the lowest-cost possibility for you. After I first began writing about STI ETFs on this weblog, each choices charged an identical expense ratio of 0.30% p.a. then, however this has since dropped additional.
State Avenue has decreased their charges to 0.28% p.a. now, whereas NikkoAM’s expense ratio in the identical audit interval got here in at a decrease 0.26% p.a.
Subsequent, you need to observe that the Amundi STI fund is not an ETF.
What Amundi is providing is a unit belief that’s solely out there by way of robo-advisory platform EndowUs for now, which implies the fund just isn’t listed on the SGX. Because of this what you’re shopping for is a product that you simply will be unable to commerce it on the open SGX market, nor are you able to personal it in your CDP to purchase/promote utilizing some other brokerage platforms. All your transactions should be made by EndowUs solely.
Who would purchase the Amundi Singapore STI Fund, then?
There’ll at all times be completely different funding merchandise to cater to the completely different wants of assorted buyers. And in Singapore, the market is actually sufficiently big for a 3rd participant.
Present EndowUs clients will doubtless discover the Amundi Singapore STI fund to be a sexy possibility so as to add extra Singapore publicity into their current portfolios on the platform since they’re already paying for his or her annual EndowUs charges anyway.
Nonetheless, I don’t suppose it is smart for a brand new buyer to open an EndowUs account simply to put money into the STI by way of this Amundi unit belief.
As for self-directed buyers, shopping for straight by way of one of many 2 STI ETFs listed on the SGX nonetheless makes extra sense by way of price, possession and management. I discover it laborious to think about this group of buyers switching over to the latest participant.
What do you suppose?
With love,
Daybreak
