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UOB Asset Management launches innovation-focused equity fund for retail investors
A NEW equity fund by UOB Asset Management (UOBAM), a wholly owned subsidiary of United Overseas Bank, allows retail investors to invest in innovative firms of varying market capitalisations in both developed and emerging markets.
The United Global Innovation Fund (UGIF) invests in enterprises seeking to drive structural change across sectors such as healthcare, finance, software and services, transport, manufacturing and retail, UOBAM said in a press statement on Monday.
This can lead to positive returns for investors even amid a slowing global economy and volatile market conditions, said Dharmo Soejanto, senior director of the external fund managers unit at UOBAM.
“Innovation is a key business driver for many companies looking to outperform the competition and stock market, as it can drive growth independent of the global economic and market cycles,” Mr Soejanto said.
Through a single fund, retail investors will be able to tap opportunities in game-changing trends ranging from advances in mobile, machine learning and automation technology to healthcare innovation and changing consumer preferences, UOBAM said.
Investors can also gain exposure to high-potential, early-stage companies expected to achieve substantial scale in time.
Climate action is another key investment theme of the UGIF, as the fund also focuses on firms in sectors such as renewable energy.
The UGIF is suitable for investors seeking long-term capital appreciation and are comfortable with the volatility and risks of investing in an equity fund, in view of the time required for the fund’s investment themes to play out.
The initial minimal subscription sum is S$1,000 or US$1,000.
Wellington Management Singapore is the sub-manager of the fund.
The UGIF was first launched in Thailand in November last year by UOBAM (Thailand). As at May 31, the fund had more than 133 million baht (S$5.8 million) in assets under management, and achieved 8.89 per cent returns year to date, 2.11 per cent higher than the benchmark MSCI All Country World Index.
UOBAM manages 53 unit trusts in Singapore. As at April 30, UOBAM and its subsidiaries manage S$32.1 billion in clients’ assets.
Shares of United Overseas Bank were trading up three Singapore cents or 1.2 per cent at S$25.29 as at 11.49am on Monday.