Focused on impact investing and stable income for sophisticated investors
UOB Asset Management (Malaysia) (UOBAM (Malaysia)) recently launched the United Sustainable Series – Global Credits Fund (USSGCF), its first wholesale fund that focuses on bonds from companies that are making progress against the United Nations (UN) Sustainable Development Goals (SDGs). The UN SDGs set the global agenda for sustainable economic, social and environmental development to be achieved by 2030.
The USSGCF seeks to achieve its investment objective by investing a minimum of 90 per cent of its net asset value in the RobecoSAM SDG Credit Income (the Target Fund). The Target Fund offers investors diversified exposure to the global credit markets and aims to maximise income throughout the credit cycle.
Ms Lim Suet Ling, Chief Executive Officer of UOBAM (Malaysia), said, “At UOBAM, we believe in investing for purpose and providing positive returns. We have seen an increasing interest in environmental, social and governance (ESG)-focused funds that deliver positive impact, particularly among sophisticated investors who are playing an important role in influencing the adoption of ESG. There is also growing evidence that aligning investment values can translate to consistent outperformance of returns in the long term.”
Robeco Institutional Asset Management B.V. (Robeco), a global leader in sustainable investing is the manager of the Target Fund. “We are excited to partner Robeco in forging a sustainable future by offering investors the opportunity to do good while also enjoying stable income. As more investors look to making a positive impact, UOBAM (Malaysia) will continue to sharpen our ESG capabilities and to help steer their wealth to sustainable investments,” Ms Lim said.
The Target Fund applies a proprietary measurement framework to quantify companies’ contributions to the 17 UN SDGs. The assessment also helps to identify companies that are able to remain competitive and relevant in the transition to a more sustainable economy. This limits investments in companies with higher risk of default in the future. The Target Fund will also not invest in corporate bonds that detract from these goals or have a negative SDG rating.
The USSGCF underpins UOBAM (Malaysia)’s commitment to drive sustainability by putting ESG impact at the heart of its business. The firm’s parent company, UOBAM Ltd, which is headquartered in Singapore, is a signatory of the UN-supported Principles for Responsible Investment3 and the Singapore Stewardship Principles for Responsible Investors.
The USSGCF is suitable for sophisticated investors who have conservative risk profiles, have long-term investment horizons and seek capital growth by investing in a portfolio of global fixed income instruments. It is available for subscription in Malaysian Ringgit, Australian Dollar, Pound Sterling, Singapore Dollar, US Dollar and Chinese Renminbi with a minimum initial investment of RM1,000, A$1,000, US$1,000, £1,000 and RMB1,000 respectively.