UOB Asset Management (UOBAM) on Monday launched the first Singapore-focused fund aimed at individual and institutional investors contributing to the nation’s sustainability drive.
Known as the United Smart Sustainable Singapore Bond Fund, the vehicle is focused on bonds with strong environmental, social, and governance (ESG) mandates, the company said in a statement.
Investors seeking income and capital appreciation over the medium to long term need to set aside a minimum subscription of $1,000 for the United Smart Sustainable Singapore Bond Fund.
Most of the assets are allocated to bonds in Singapore but the fund’s portfolio gives room to corporate bond assets across Asia as well, the company said.
Thio Boon Kiat, UOBAM group CEO, said the fund helps “steer capital to sustainable investments” while helping investors benefit from a stable income.
“Investing for profit and purpose is one of our key tenets,” Thio Boon Kiat said.
The Singapore government announced the plan to finance up to S$19 billion of public sector infrastructure projects through green bond issuance as part of this year’s state budget.
On the other hand, companies are also gearing up to raise funds sustainably amid the global transition to a lower-carbon economy.
In May, UOBAM announced that the assets under management of its two China-focused funds have crossed over $1 billion in two years. The two funds are dubbed the United China-A Shares Innovation Fund and the United China-A Shares Consumption Upgrade Fund.