New fund by UOBAM to focus on ESG efforts in Singapore

UOB Asset Management (UOBAM) has launched the United Smart Sustainable Singapore Bond Fund to attract investors looking to invest in Singapore's sustainability efforts.

The fund will invest its assets in high-quality green, social and sustainability-linked bonds with strong environmental, social and governance mandates (ESG), UOBAM said on Monday (Oct 25).

A majority of the fund will be allocated to bonds in Singapore, as the government has set a target to finance up to S$19 billion of public sector infrastructure projects through green bond issuances. Corporate bond assets across Asia will also be part of its portfolio.

The bond fund has investment themes of "green, clean and smart Singapore", "preparing for climate change", "sustainable production". Technology will be tapped to identify and track investments based on UOBAM's own ESG rating model.

Combining third-party data from MSCI and S&P Global Trucost with its own analysis and frameworks, the model will also utilise artificial intelligence and machine learning in evaluating companies, including monitoring news from the companies.

An impact dashboard has been created to display the quantitative ESG indicators of the fund's portfolio. The ESG scores will be measured against indicators such as carbon intensity and reduction target, and supply chain environmental cost intensity among others.

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"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," said Thio Boon Kiat, group chief executive officer of UOBAM.

Read more:

• New Reit index by SGX and UOBAM tracks environmentally positive Reits

• UOBAM rolls out sustainable bond fund for retail investors