Buyers who want to journey 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 Occasions 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 Occasions Index Fund examine to present choices? And does it make sense for us to take a position there as an alternative of accessing it immediately 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 Occasions Index Fund.
Methods to spend money on the Straits Occasions Index (STI)
The Straits Occasions Index (STI) is made up of the 30 largest blue-chip corporations listed in Singapore, and usually serves as a benchmark index for Singapore’s inventory market returns. It has traditionally supplied an honest dividend yield than different regional bourses, with decrease volatility than world fairness benchmarks because of Singapore’s sturdy banking, actual property, telecommunications, and industrial sectors.
Previous to this, when you had been an investor who needed 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 Occasions Index ETF was listed in 2002. Between January 2020 to July 2025, its belongings underneath administration elevated by 131% to $1.92 billionn.
- The Nikko AM Singapore STI ETF was listed in 2009. Between Jan 1, 2020, and July 14, 2025, its belongings underneath administration elevated by 195% to $973 million.
Buyers who appeared primarily at AUM dimension are inclined to favour the SPDR Straits Occasions 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 most recent Amundi Singapore Straits Occasions Index Fund value contemplating?
What to know earlier than you spend money on the Amundi Singapore Straits Occasions Index Fund
EndowUs states that the Amundi Singapore STI Fund has the bottom complete 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 Occasions Fund providing the bottom complete expense ratio amongst friends, with a administration charge of simply 0.15% p.a., and no transaction or gross sales fees. Out there for Money and SRS investments.
– EndowUs
That is true, however there are some things it is best to observe.
Firstly, whereas the administration charge of 0.15% p.a. is certainly the bottom amongst different STI funds, buyers utilizing the EndowUs platform should pay an extra recurring EndowUs charge starting from 0.15% – 0.6% yearly.
Therefore, if price is your principal concern, then shopping for one of many 2 STI ETFs on SGX immediately could be the lowest-cost possibility for you. After I first began writing about STI ETFs on this weblog, each choices charged the same 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 and ETFs.
What Amundi is providing is a unit belief that’s solely accessible through robo-advisory platform EndowUs for now, which suggests the fund will not be listed on the SGX. Which means what you’re shopping for is a product that you just 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 entire transactions should be made by means of EndowUs solely.
Who would purchase the Amundi Singapore STI Fund, then?
There’ll all the time 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.
Present EndowUs prospects will probably discover the Amundi Singapore STI fund to be a gorgeous possibility 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.
Nevertheless, I don’t assume it is sensible for a brand new buyer to open an EndowUs account simply to spend money on the STI through this Amundi unit belief.
As for self-directed buyers, shopping for immediately through one of many 2 STI ETFs listed on the SGX nonetheless makes extra sense by way of price, possession and management. I discover it exhausting to think about this group of buyers switching over to the most recent participant.
What do you assume?
With love,
Daybreak
