ABF Singapore Bond Index Fund (A35)

Singapore’s Bond ETF — A35 Yield, Composition & How to Buy on SGX — Singapore investing guide with key metrics, examples and 2026 data.

The ABF Singapore Bond Index Fund (SGX ticker: A35) is an exchange-traded fund (ETF) that tracks the iBoxx ABF Singapore Bond Index — a benchmark of Singapore government and quasi-government bonds (such as Housing Development Board and Land Transport Authority bonds). It is the only bond ETF listed on the SGX that provides diversified exposure to Singapore’s investment-grade bond market in a single liquid instrument.

Not financial advice. All figures are for educational reference only. Data as at Q1 2026 unless noted.

Table of Contents

What Is the ABF Singapore Bond Index Fund?

The ABF Singapore Bond Index Fund (A35) was established in 2005 as part of the Asian Bond Fund initiative led by the Executives’ Meeting of East Asia and Pacific (EMEAP) central banks. It is managed by Nikko Asset Management Asia and is listed on the Singapore Exchange (SGX) under the ticker A35. The fund tracks the iBoxx ABF Singapore Bond Index, which comprises government and statutory board bonds denominated in Singapore dollars.

Unlike T-bills or Singapore Savings Bonds (SSBs), A35 gives investors exposure to longer-duration bonds — including 10-year+ Singapore Government Securities (SGS) and quasi-government issuers like HDB and LTA. This means A35 has more interest rate sensitivity (duration risk): when interest rates fall, A35’s price rises; when rates rise, A35’s price falls. This bond ETF is therefore more suited to investors who expect rates to stay flat or decline, or those seeking regular coupon income from high-quality Singapore bonds.

As at Q1 2026, A35 has a total expense ratio (TER) of approximately 0.24%–0.26% p.a. — one of the lowest among SGX-listed ETFs. It pays quarterly distributions, making it convenient for income-oriented investors who want regular cash flow from their fixed income allocation.

How It Works

A35 invests in a portfolio of Singapore dollar-denominated government and quasi-government bonds that make up the iBoxx ABF Singapore Bond Index. The fund uses physical replication — it actually holds the underlying bonds, not derivatives. Income from bond coupons is collected by the fund and distributed to unit holders quarterly.

Key metrics as at Q1 2026:

You can buy A35 through any SGX brokerage account in lots of 1 unit. It is also eligible for inclusion in the CPF Investment Scheme (CPFIS) — OA investors can hold A35 via CPFIS-OA, making it a rare bond ETF with CPF-eligible status.

ABF Singapore Bond Index Fund in Singapore

A35 occupies a unique niche in Singapore’s investing landscape — it is the only way for retail investors to get diversified, long-duration Singapore government bond exposure via a single liquid stock exchange trade. This contrasts with T-bills (short duration, 6–12 months) and SSBs (10-year max but early redemption allowed), both of which are direct SGS instruments.

The fund’s longer duration means it is more sensitive to interest rate movements than T-bills. During the 2022–2023 rate-hiking cycle, A35’s price fell by roughly 10%–15% from peak levels as rates rose sharply — this is the key risk to understand before investing. Conversely, when rates decline, A35’s total return (price appreciation + distributions) can outperform T-bills significantly.

For Singapore investors building a balanced portfolio, A35 is typically used as a long-term fixed income allocation alongside equity positions in blue chips or S-REITs. It is not a substitute for T-bills as a cash equivalent because its price fluctuates. Our Best S-REITs guide and the Retirement Calculator can help model an appropriate fixed income allocation for your risk profile.

Real-World Examples

Income scenario — quarterly distributions:
An investor who holds S$50,000 worth of A35 at a trailing yield of 3.0% p.a. receives approximately S$1,500 per year in distributions, paid quarterly (~S$375 per quarter). These distributions are treated as Singapore-sourced income and are generally exempt from personal income tax for individual Singapore investors.

Price sensitivity example:
If interest rates fall by 1 percentage point, a bond portfolio with 7.5 years modified duration would theoretically rise in price by ~7.5%. Conversely, a 1% rate rise would push prices down ~7.5%. This illustrates why A35 is better treated as a medium-to-long-term hold rather than a short-term parking vehicle for cash.

A35 vs T-bill comparison:
In a declining rate environment (as seen in late 2024 through 2025), A35’s total return (price gain + distributions) exceeded T-bill returns because T-bill rates were repriced lower at each auction while A35 benefited from capital appreciation as long-duration bond prices rose.

Why It Matters for Investors

For Singapore investors building a diversified portfolio, A35 serves as the fixed income backbone — providing high-quality bond exposure in a single SGX-listed instrument without needing to manage individual bond positions. Its quarterly distributions suit income investors, and its AAA credit quality ensures minimal default risk.

A35 is particularly relevant for: (1) investors approaching retirement who want to shift some equity exposure to high-quality bonds, (2) CPFIS-OA investors who want bond exposure within CPF, and (3) long-term passive investors following a balanced asset allocation strategy. Use our Retirement Calculator to see how a bond allocation affects your retirement income projections alongside dividend-yielding assets. For ETF investors looking for global bond exposure, platforms like FSMOne offer access to a wider range of international bond ETFs alongside A35.

Frequently Asked Questions

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