Singapore's UOB Asset Management has launched a new bond fund that invests in sustainable debt to support the city state’s green development plans.
Most of the assets of the United Smart Sustainable Singapore Bond Fund will be allocated to bonds in Singapore. The fund also allocates to corporate bond assets based across Asia. The initial minimum subscription is S$1,000 (US$742.30) or US$1,000.
The new fund invests in “high quality green, social, sustainability and sustainability-linked bonds with strong environmental, social and governance mandates”, UOB Asset Management says in a statement.
According to Chief Executive Officer Thio Boon Kiat, “investing for profit and purpose” is one of the company’s key tenets.
“It is also the core motivation of our United Smart Sustainable Singapore Bond Fund, the first ESG fund that enables investors to participate in the shaping of a sustainable Singapore for future generations,” he says in the statement. “As we help steer capital to sustainable investments, we believe we can also help investors benefit from stable income and capital appreciation, so that they can realise both profit and purpose.”
The company has created an online impact dashboard that displays the portfolio’s quantitative ESG indicators to help investors better understand the fund’s sustainability performance.
The dashboard also shows the impact from investments made through the fund in comparison with the J.P. Morgan ESG Asia Credit Index. For instance, every S$1 million of revenue generated by the fund equates to 86 megawatt-hours less in energy consumption compared with the index.
UOB Asset Management had S$37.9 billion of assets under management as of end-August.