Schroder Investment Management has launched the Schroder ISF Sustainable Multi Asset Income (SMAI) Fund, a product that aims to provide income within a sustainability strategy, to Singapore’s mass market.
“Singapore is the first Asian market to launch the fund, and information about other launches will be provided in due course,” a Schroders spokeswoman told our sister publication Fund Selector Asia.
HSBC Singapore is the exclusive distribution partner for the SMAI fund, whose base currency is in Euros, but it also offers Singapore, US and Australian dollar hedged share classes.
“The fund complements our range of ESG fund strategies [and] balances our customers’ search for yield amid the current low interest rate environment and their desire to make a difference to our environment,” said Ian Yim, head of wealth and international, HSBC Bank (Singapore).
Details
The fund aims to deliver income of 3% to 5% a year paid monthly, by investing across a diverse range of asset classes and regions, including investments that target better sustainable outcomes such as carbon neutral equities and green bonds.
The Luxembourg-registered Ucits was incepted in January this year, and is managed by Remi Olu-Pitan, Dorian Carrell and Jingjing Cui.
The fund has a risk profile comparable to a portfolio of 30% equities and 70% fixed income, and is benchmark unconstrained, according to the spokeswoman.
Sustainable
“The current crisis has put sustainable investment in the forefront of investors’ minds with growing evidence that sustainable business models are more resilient and better able to withstand market shocks,” said Lily Choh, deputy chief executive, Singapore and head of distribution, Southeast Asia, Schroders in a statement.
“For investors seeking income, this challenges the notion that there needs to be a trade-off and you must forgo attractive income if you are investing sustainably,” she said.
Schroders’ latest Global Investor Study of 23,000 people found that 43% of investors in Singapore now frequently invest in sustainable investment funds, which is a marked increase from 31% two years ago.
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