The Nikko AM Shenton ST Bond is a new Parking Facility Fund at Fundsupermart with effect from 28 Jan 2011. Similar to Cash Fund , the existing parking facility fund, the Nikko AM Shenton ST Bond facilitates online transactions of unit trusts where investors are able to invest unit trust using Nikko AM Shenton ST Bond without any lag time. The fund seeks to preserve capital and liquidity, and to outperform the SIBOR. It invests in a diversified portfolio of good quality, short-term bonds and money market instruments. If there is a fund on our platform that can be deemed to be a ‘Cash Fund Plus’ type of fund, the Nikko AM Shenton ST Bond will be one of the closest. It potentially earns higher returns than the Cash Fund while still having relatively low risk levels.

Click here to view Nikko AM Shenton ST Bond’s fund factsheet.

Click here to know more about Nikko AM Shenton ST Bond and its features.

2. Investors are able to invest into other unit trusts by indicating the absolute investment amount instead of calculating the number of units to be invested.

3. Investors can choose to sell a fund and place the proceeds directly into the Nikko AM Shenton ST Bond, just as they can do so with the cash fund right now.

4. Minimum investment amount is lowered to SGD 500 and the minimum subsequent investment amount is lowered to SGD 250 respectively. There is also no minimum holding amount or minimum redemption amount.

5. As a parking facility fund, the Nikko AM Shenton ST Bond will take first priority in terms of deduction for platform fee deductions, followed by cash fund, and then the best performing fund.

**Net yield is as at 21st Jan 2011 and net of platform fees and expense ratios
*Note: Investors can only use up to 98% of the current Nikko AM Shenton ST Bond holdings to make same day transactions when the Nikko AM Shenton ST Bond is used as the payment method. 2% is set aside as a buffer for any differences due to forward pricing.

# The Nikko AM Shenton ST Bond fund will take first priority in terms of deduction for platform fee deductions, followed by cash fund, and then the best performing fund.

For a comparison of historical performance of the 2 funds, click here.

Click here to view the net yield-to-maturity of Nikko AM Shenton ST Bond for the past 3 months.

Read here to understand more about the difference in yield to maturity on a bond and yield to maturity on a bond fund.

Click here to view the latest yield-to-maturity of the Nikko AM Shenton ST Bond.

1. Buy into the Nikko AM Shenton ST Bond by placing an online buy order
2. Park sales proceeds from a unit trust sell order in Nikko AM Shenton ST Bond
3. Switch a unit trust into the Nikko AM Shenton ST Bond

Similar to buying other unit trusts, key in the investment amount, select the payment method and add to the shopping cart before submitting the buy order.

For cash payment, you can mail us a cheque, make an Internet bill payment (for UOB, OCBC, DBS and SCB Internet bank customers), or do a telegraphic transfer.

For more details on each payment method, please refer to Payment Methods FAQ

The Nikko AM Shenton ST Bond is also available for CPF-OA and SRS investments. Simply select the payment method accordingly when placing the buy order.

Orders whose payments are received before 3pm on each business day will be transacted on the same day. If payments are received after 3pm, the orders will be transacted on the next business day.

Buy orders will be completed on T+2 from the day of transaction (T). Buy price is based on T.

For CPF-OA/ SRS orders

Buy orders will be transacted on the same business day if the CPF-OA/ SRS buy orders are placed before 3pm.

Buy orders will be completed on T+4 from the day of transaction (T). Buy price is based on T.

The sales proceeds (SGD) will be sent to you either by cheque or deposited into your designated bank account on T+2. Please note that your designated bank will take 1 business day to clear the cheque.

If you are redeeming the sales proceeds in other currencies e.g. USD, the sales proceeds in SGD will be converted into USD and paid out to you on T+3. The foreign exchange (FX) rate will be based on T.

For CPF-OA/SRS orders

The sales proceeds will be credited into your respective CPF investment account or SRS account on T+3.

You are able to invest into other unit trusts by indicating the absolute investment amount instead of calculating the number of units to be invested. For example, you can choose to buy Fund A, using $10,000 from your EIF fund, instead of having to specify how many units from your Nikko AM Shenton ST Bond you wish to use.

By placing such buy orders using Nikko AM Shenton ST Bond as the payment method before 3pm, your unit trust buy order will be processed immediately on the same day.

If you were to mail a cheque or make an Internet payment for your cash purchases, your orders will only be transacted when the payment is received.

The Nikko AM Shenton ST Bond as payment method is also available for investments using CPF-OA and SRS accounts. Such buy orders submitted before 3pm will be processed on the same day.

The maximum available balance* of your Nikko AM Shenton ST Bond holding (SGD) will be shown each time when you place a unit trust buy order. This is the maximum amount that you can utilize to buy a unit trust without any lag time (i.e. same day purchase).

Such buy orders will be processed as a switch order, i.e., a switch from your Nikko AM Shenton ST Bond into the unit trust that you want to buy. You will be receiving a switch order email confirmation from us.

*Note: Investors can only use up to 98% of the current Nikko AM Shenton ST Bond holdings to make same day transactions when the Nikko AM Shenton ST Bond is used as the payment method. 2% is set aside as a buffer for any differences due to forward pricing.

Due to forward pricing, and in order to enable same day purchase of unit trust using Nikko AM Shenton ST Bond, 2% of your Nikko AM Shenton ST Bond holding will be set aside to cater to any price fluctuation. This is because the actual number of units to be deducted from your Nikko AM Shenton ST Bond holding is not known yet as the NAV price of Nikko AM Shenton ST Bond of the dealing day has not been published.

We will elaborate more using the following hypothetical example:

Example:

Number of units in your Nikko AM Shenton ST Bond holding: 10,000 units
Latest indicative price: $1.00
Current value of Nikko AM Shenton ST Bond holding: $10,000
Maximum available amount of Nikko AM Shenton ST Bond that you can use for same day unit trust purchase: $9800 (this is after the 2% buffer)

You are able to invest into other unit trusts by indicating the absolute investment amount. For example, you can choose to buy Fund A, using $1000 from your Nikko AM Shenton ST Bond fund before 3pm. Buy order of Fund A will be processed on the same dealing day (T).

Actual NAV of the dealing day (T) will only be published and available 1-2 business day later.

If the NAV of T day remains as $1.00, 1000 units of your Nikko AM Shenton ST Bond holding will be deducted for the unit trust purchase.

If the NAV of T day drops to $0.99, 1010.10 units of your Nikko AM Shenton ST Bond holding will be deducted for the unit trust purchase.

If the NAV of T day increases to $1.01, 990.10 units of your Nikko AM Shenton ST Bond holding will be deducted for the unit trust purchase.

This is applicable when you are switching your Nikko AM Shenton ST Bond into another Nikko Fund, say Nikko A Fund.

There will be no switch lag time and the Nikko A Fund will be purchased on the same dealing day (T). Buy price will be based on T.

Inter Switch Order

This is applicable when you are switching your Nikko AM Shenton ST Bond into another Fund, say Aberdeen A Fund. Switch lag time is applicable i.e. the switch-buy fund will not be purchased on the same day. The switch-lag time is generally T+1.

Below is the switch lag time for Nikko AM Shenton ST Bond and most of the other funds:

Switch-sell lag time for Nikko AM Shenton ST Bond = 1 business day
Switch-buy lag time for most of unit trust = 0 business day

Hence, if you were to switch-sell Nikko AM Shenton ST Bond on T day, the Aberdeen A fund will be bought on T+1. The buy price of Aberdeen A will be based on T+1.

Note: if you wish to switch-sell Nikko AM Shenton ST Bond by “Dollar Amount” instead of number of units for same day purchase, please place a buy order at Investments > Buy Unit Trust.

In this case, click on the option “Switch-Sell All” so as to sell the entire number of units of your Nikko AM Shenton ST Bond holding.

However, please note that by placing this switch order online (switch-sell by number of units), switch lag time of generally T+1 will be applicable (except for Intra-Switch), which is similar to all other Inter-Switch Orders.

See next FAQ for more explanation about the switch lag time involved.

Click here to know more about Switching of Funds.

The sales proceeds of unit trust will be used to buy into Nikko AM Shenton ST Bond. Generally, the sale proceeds will be available in your Nikko AM Shenton ST Bond holding on T+6.

Such sell order will be processed as a switch order, i.e., a switch from your unit trust into the Nikko AM Shenton ST Bond. You will be receiving a switch order email confirmation from us.