Media Releases
Published Date: 12 May 2005

MAS Welcomes the Implementation of ABF 2

Singapore, 12 May 2005...The EMEAP1  has appointed private sector fund managers for the Asian Bond Fund 2 (ABF2).

2   On 16 December 2004, the EMEAP announced that US$2 billion ABF2 would comprise an ABF Pan-Asian Bond Index Fund (PAIF) and eight Single-market Funds. The PAIF is a US$1 billion single bond fund investing in sovereign and quasi-sovereign local currency-denominated bonds issued in the eight EMEAP markets.  The eight Single-market Funds totalling US$1 billion will each invest in sovereign and quasi-sovereign local currency-denominated bonds issued in the respective EMEAP markets. Both these funds will invest in Singapore sovereign and quasi-sovereign Singapore dollar-denominated debts. 

3   State Street Global Advisors Singapore Limited has been appointed as PAIF's manager. The PAIF will be domiciled in Singapore and initially listed in the Hong Kong Stock Exchange. DBS Asset Management has been appointed as the manager of the ABF Singapore Bond Index Fund, the Singapore portion of the eight Single-market Funds. The ABF Singapore Bond Index Fund will be listed on the Singapore Exchange.

4   Mr. Ong Chong Tee, Deputy Managing Director, Monetary Authority of Singapore, said "ABF2 will bring significant benefits to the development of Asian bond markets. We are also pleased that the PAIF will be domiciled in Singapore. This is a testament to the successful growth and development of Singapore as a fund management centre in Asia, and it will deepen the pool of Asian debt market expertise here."

5   Singapore dollar-denominated bonds accounts for 18.70% of PAIF. The market weights in the PAIF will be reviewed annually and are derived from a combination of factors, including market size, liquidity and openness. "This speaks to the quality and variety of Singapore dollar-denominated debt, and the breadth and conduciveness of Singapore's debt market for investors.  ABF2 will help to enhance the visibility of Singapore dollar-denominated debt among investors who are keen to invest in Asian bonds," Mr Ong added.

6   In January 2005, Singapore Government Securities were included into the Citigroup World Government Bond Index. Singapore was the first Asian country after Japan to enter the index. Singapore is also in the JP Morgan World Government Bond Index and the Lehman Asia Pacific Aggregate Index.


Details on the Fund can be found at the official EMEAP website at .

1   EMEAP, the Executives' Meeting of East Asia and Pacific Central Banks, comprises 11 central banks and monetary authorities from Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore and Thailand. For more information on EMEAP, visit .