UOB unit launches sustainable bond fund for retail investors

UOB Asset Management (UOBAM), a wholly owned subsidiary of United Overseas Bank, launched a sustainable bond fund targeted at retail investors yesterday.

The United Sustainable Credit Income Fund will focus on bonds from companies that are making progress in line with the United Nations' Sustainable Development Goals (SDGs), said UOBAM.

The initial minimum subscription sum is $1,000 or US$1,000 (S$1,430).

UOBAM said the multi-sector fund is the first of its kind available to retail investors in Singapore, and offers "stable income" through monthly dividend distributions. Retail investors will invest in the RobecoSAM SDG Credit Income Fund - the underlying fund - previously available only to institutional investors and high-net-worth individuals.

The underlying fund - managed by international asset manager Robeco - assesses investible companies' contributions towards SDGs by evaluating the sustainability impact of their products, operational processes and business practices.

UOBAM said the assessment helps identify firms that are able to remain competitive and relevant in the transition to a more sustainable economy, thereby limiting investments in firms with a higher risk of default in the future.

As the underlying fund is not assessed against a benchmark, it has the flexibility to select bonds, including green bonds, which are attractive in terms of yield and their SDG-related efforts.

THE BUSINESS TIMES

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A version of this article appeared in the print edition of The Straits Times on March 28, 2020, with the headline UOB unit launches sustainable bond fund for retail investors. Subscribe