Buyers who want to experience 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 house, and the primary unit-trust-based index fund monitoring the STI.
However for skilled buyers, how does the most recent Amundi Singapore Straits Instances Index Fund evaluate to present 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.
Find out how to 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 international fairness benchmarks resulting from Singapore’s sturdy banking, actual property, telecommunications, and industrial sectors.
Previous to this, should you have been an investor who wished to get publicity to the efficiency of the STI, you may 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 property below 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 property below administration elevated by 195% to $973 million.
Buyers who regarded primarily at AUM dimension are likely to favour the SPDR Straits Instances Index ETF, whereas buyers preferring a extra native fund supervisor often gravitated in the direction of the Nikko AM Singapore STI ETF. In my case, I selected the latter.
So, is the most recent 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.
Get pleasure from 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 prices. Accessible for Money and SRS investments.
– EndowUs
That is true, however there are some things it is best 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 a further recurring EndowUs price starting from 0.15% – 0.6% yearly.
Therefore, if price is your primary concern, then shopping for one of many 2 STI ETFs on SGX straight could be the lowest-cost choice for you. Once 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 Road has diminished 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, it is best 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 shouldn’t be listed on the SGX. Which means that 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. Your whole transactions should be made via 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 definitely sufficiently big for a 3rd participant.
Current EndowUs prospects will doubtless discover the Amundi Singapore STI fund to be a sexy choice so as to add extra Singapore publicity into their present portfolios on the platform since they’re already paying for his or her annual EndowUs charges anyway.
Nonetheless, I don’t assume it is sensible 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 when it comes to price, possession and management. I discover it onerous to think about this group of buyers switching over to the most recent participant.
What do you assume?
With love,
Daybreak
