TL;DR

• Lion Global Investors is launching the LionGlobal Short Duration Bond Fund (Active ETF SGD Class), Singapore’s first actively managed bond ETF.
• Initial Offering Period (IOP): 8–23 September 2025, at SGD 1 per unit.
• Listed on 29 September 2025 on SGX under tickers SBO (SGD) and SBV (USD).
• Focus: short duration, actively managed portfolio of mostly investment-grade Singapore and international bonds.
• Fees: management fee of 0.25% p.a., with quarterly distributions (not guaranteed).
• Significance: improves retail access to bond diversification, signals innovation in Singapore’s ETF market.

Singapore’s First Active Bond ETF: A New Chapter for SGX

Singapore’s bond market is about to take a leap forward. Lion Global Investors has announced the launch of the LionGlobal Short Duration Bond Fund (Active ETF SGD Class), marking the first actively managed bond ETF to list on the Singapore Exchange (SGX).

The move adds a fresh layer of sophistication to the local exchange, which has thus far been dominated by passive ETFs. The introduction of an active bond ETF signals innovation and a recognition that investors want more flexible, professionally managed fixed income options.

Key Dates & Subscription Details

• Initial Offering Period (IOP): 8 Sept → 23 Sept 2025

• Unit price during IOP: SGD 1.00 per unit 

• Listing date on SGX: 29 September 2025 

• Trading tickers: SBO (SGD class), SBV (USD class)

This listing also makes it the first ETF in Singapore that is a listed share class of an existing unlisted fund, giving investors access to a strategy that already has a track record.

What Makes This Significant

• Innovation in Singapore’s bond / ETF market

  • Active bond ETFs are a relatively new tool globally; Singapore has had mostly passive bond ETFs. This marks a shift which gives investors more tools to manage interest rate risk, credit risk, and to seek income with more flexibility.

  • The listing of a share class of an existing fund allows investors to benefit from an investment strategy with a track record, while also gaining the advantages of an ETF (liquidity, intra-day tradability, often lower transaction cost).

• Fills a gap/ Accessibility for Retail Investors

  • Many retail investors in Singapore (and regionally) may have found it difficult to access diversified bond portfolios, especially with small sums, or to build fixed income exposure without large minimums. An ETF structure with unit price of SGD 1 and listed on SGX improves accessibility. 

• Short Duration Focus

  • The short duration reduces interest rate sensitivity, which is attractive in a volatile rate environment. 

• Competitive costs

  • With management fee of 0.25%, this is relatively low for active fixed income strategies. It will be interesting to see how performance after fees stacks up.
    
    

Risks and Considerations

• Distributions are not guaranteed; may come from income, capital gains, or even capital. That means the income profile could vary.

• Exposure to sub-investment grade securities may increase risk; credit risk needs monitoring.

• Duration is short, but not zero—there will be some sensitivity to interest rate changes.

• Liquidity risk: while listed, bond holdings may have underlying liquidity constraints depending on the issuer / market conditions.

• FX exposure: Though largely SGD, international bonds may expose to foreign currency risk unless hedged; investor should check.
  
  

What This Means For Different Types of Investors In Singapore

• Retail investors: This product lets them access a professionally managed bond portfolio with relatively small capital, trade intraday, and enjoy greater transparency. It could serve as a building block for income portfolios, or for investors seeking lower volatility than equities.

• Institutional / private wealth: Might use this active bond ETF for tactical fixed income allocations, or to adjust duration / credit risk more dynamically than via traditional funds.

• Portfolio diversification: As equities have done well recently for many, this gives a viable alternative to cash, fixed deposits, or passive bond ETFs — particularly in the current global interest rate and inflation environment.

Implications For The Broader SGX / Fund Industry

• This could pave the way for more active fixed income ETFs in Singapore, or in the region. If this product is successful (in take-up, AUM growth, tracking / return performance), other fund houses may follow.

• May also push SGX / regulators to streamline listing / regulatory approval processes for active bond strategies, or to address any frictions (market maker presence, liquidity, etc.).

• Could influence investor expectations: e.g., demand for transparency, lower fees, more choice among active vs passive, especially in fixed income.

FAQs

1. How does an active bond ETF differ from a passive one?
Passive bond ETFs track an index, while active ETFs rely on professional managers to select bonds, adjust exposures, and manage risks dynamically.

2. Is the SGD 1 unit price fixed?
Only during the Initial Offering Period (8–23 September 2025). After listing, the price will fluctuate based on market demand and the value of underlying bonds.

3. How will distributions work?
Intended to be quarterly (March, June, September, December), but payouts are not guaranteed and may come from income, capital gains, or capital.

4. Who might find this ETF useful?
Investors seeking bond diversification with low entry capital, or those wanting less sensitivity to interest rates compared to longer-duration bond funds.

Reference consulted

• Lion Global Investors, LionGlobal Short Duration Bond Fund (Active ETF SGD Class)

• Hubbis, Lion Global Investors to List Singapore’s First Active Bond ETF on SGX

This is an AI-powered article, curated by The Financial Coconut.