EU asset manager Amundi launches new fund in S’pore that tracks Straits Times Index
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The Amundi Singapore Straits Times will be the first unit-trust-based index fund tracking the STI by a global asset manager.
PHOTO: REUTERS
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SINGAPORE – European asset manager Amundi has launched a fund that tracks Singapore’s benchmark Straits Times Index (STI) with investment platform Endowus.
The Amundi Singapore Straits Times is the first unit-trust-based index fund tracking the STI by a global asset manager in Singapore, both companies said on July 16 as they announced the fund’s official launch.
The fund also commemorates SG60, a celebration of Singapore’s independence and transformation into a global economic powerhouse, they added.
The STI, a benchmark of Singapore’s established listed companies, has been hitting new highs, with an intraday high of 4,129.8 points reached on July 15. In 2024, it delivered total returns of 24.3 per cent – its best performance in a decade.
“Through the fund, investors can participate and grow alongside Singapore’s ongoing growth story in a low-cost, meaningful way,” the companies said.
Two other exchange-traded funds (ETFs) in Singapore already track the STI – the SPDR Straits Times Index ETF and the Nikko AM Singapore STI ETF. The three funds aim to replicate as closely as possible, before expenses, the performance of the STI.
The SPDR Straits Times Index ETF was listed in 2002. Between Jan 1, 2020, and July 14, 2025, its assets under management increased by 131 per cent to $1.92 billion.
The Nikko AM Singapore STI ETF was listed in 2009. Between Jan 1, 2020, and July 14, 2025, its assets under management increased by 195 per cent to $973 million.
Amundi South Asia chief executive Albert Tse said: “We are proud to be the first global asset manager since the global financial crisis to launch a fund of this nature, leveraging our longstanding expertise in indexing solutions and trusted partnership with a home-grown financial platform like Endowus to deliver this to Singapore investors for SG60.”
The STI has historically offered dividend yields relatively higher than regional bourses, the companies added.
The STI also has historically offered lower volatility than global equity benchmarks, “driven by Singapore’s robust banking, real estate, telecommunications, and industrial sectors”, they said.
“Amid global volatility, Singapore’s equity market has been a pillar of stability.”
Over the 18-year period from January 2008 to June 2025, the STI maintained an average dividend yield of 3.77 per cent, with yields generally between 3 per cent and 5 per cent.
“This positions the fund as an option for investors seeking stable income or defensiveness while maintaining exposure to the long-term growth potential of Singapore’s economy,” the two companies said.
The fund is available exclusively on the Endowus platform at an all-in-one fee under an institutional share class. It also has no sales charge, and offers an option for investors wanting growth with relatively lowered volatility.
The collaboration combines Amundi’s global investment expertise in ETFs and index management with Endowus’ digital-first platform.
The launch of the fund comes amid efforts to boost the local equities market, with the Equities Market Review Group launched in 2024
“The fund complements these by attracting additional capital to benefit local enterprises,” the companies said.
Endowus chairman and group chief investment officer Samuel Rhee said: “As a home-grown brand, Endowus is proud to play a role in deepening financial access and supporting the aspirations of Singaporeans through every stage of their wealth journey.
“Investing in Singapore’s most established companies is, in many ways, investing in the nation’s continued prosperity.”
SGX group head of securities trading Serene Cai said the growing interest in the STI reflects the resilience and relevance of Singapore’s equity market as a core allocation.
“With close to $3 billion of listed assets tracking the STI today, the index continues to demonstrate its strength as a trusted benchmark – offering institutional and retail investors diversified exposure to Singapore’s leading companies and delivering consistent performance over time,” she said.
SPH Media editor-in-chief of the English/Malay/Tamil Media group Wong Wei Kong said: “Even as Singapore commemorates 60 years of independence and The Straits Times celebrates 180 years this year, the STI will be looking forward to being 60 next year. It is truly an integral part of the nation’s economic, business and market development.”
