United Sustainable Asia Top-50 Fund

About United Sustainable Asia Top-50 Fund (the 'Fund')


Invest for profit and purpose with Asia’s top 50 sustainable corporations who are shaping the region. The Fund aims to achieve long-term capital appreciation by investing in 50 in total, of the top corporations incorporated in, or whose principal operations are in, Asia including Japan. These companies are selected following the Fund’s investment focus on Environmental, Social, and Governance (ESG) factors using UOB Asset Management (UOBAM)’s proprietary ESG selection process.

 

Outlook of sustainability in Asia


In Asia, there has been growing awareness of the importance of sustainability, with strong commitment from governments to promote sustainability.

Asia growth

Asia’s large population will enable a strong and resilient economic growth.

Source: PwC, PwC analysis for projections to 2050, June 2022.

 

Vulnerable to climate change

Greater resource utilisation and consumption is expected from the growing population trends and consumption pattern in Asia. In addition, Asia is more vulnerable to climate change than other parts of the world4.

 

Greater commitments, more policy developments, more sustainable investment opportunities

As one of the fastest-growing regions and most at-risk regions to climate shocks, Asia must develop in a sustainable manner. The commitments and policy developments by the governments of Asian countries are a positive step.
 


Asia’s need for a sustainability transition presents a unique landscape full of sustainable investment opportunities. There is an estimated $1 trillion worth of annual economic opportunity to achieve a green economy by 2030 in Southeast Asia alone19.

Why Invest


The Fund presents a unique opportunity to invest for profit and purpose with Asia’s top 50 sustainable corporations who are shaping the region by successfully combining ESG, artificial intelligence and machine learning (AI-ML), fundamental research and collaboration with our regional offices and partners to achieve optimum returns.

 

Invest in Asia
We see opportunities for 3 prevalent megatrends that stood out as having potential to put Asia at the helm of future global growth. This marks a more mature phase of global economy accompanied by increased market volatility and lower earnings growth.

 

Changing demographics
Global markets are poised to experience changes from several major demographic shifts
Going Green
Asia offers plentiful investing opportunities while seeking to combat climate change
Digitalisation
The dotcom revolution brought the world of online shopping and an abundance of digital financial services to the man on the street

 

Thematic overlay
The Fund’s focus is on investing in companies in renewables, electric vehicles, digital services, semiconductors, and smart consumables, aligning with the megatrends to come.

Outperformance against broad Asia equities
Investing in the Fund (annualised 1.59%) leads to outperformance vs. both Asia ESG Leader (annualised -2.46%) and broad Asian equities (annualised -0.58%).

Source: Factset, UOBAM Analysis, as at 30 June 2023, in SGD terms, on a net asset value (NAV) to NAV basis before subscription charges, with dividends and distributions reinvested if any. Fund’s performance inclusive of subscription charges can be found later in the page. Past performance is not necessarily indicative of future performance.

Strong performance against benchmark since ESG conversion
Since its ESG conversion on 1st October 2020, the Fund has returned 1.43% (as at 30 June 2023). Its benchmark, the MSCI AC Asia Index, fell by -0.58% in the same period.

Source: Morningstar, as at 30 June 2023, in SGD basis, with dividends and distributions reinvested, if any. Past performance is not necessarily indicative of future performance. Performance figures for 1 month till 1 year show the % change, while performance figures above 1 year show the average annual compounded returns. Benchmark: 1 October 2020 to Present: MSCI AC Asia Index
^Includes the effect of the current subscription fee that is charged, which an investor might or might not pay.

Award-winning
The Fund has been awarded Top ESG Performance and Temperature Alignment awards at the Benchmark Top Sustainable Fund Awards 2020 20 .

Investing with UOB Asset Management (UOBAM)
At UOBAM, we have an established ESG investment capability in Asia with 7 sustainability offices and an extensive regional network that provides localised and expert insights. In Japan, we have a strategic partnership with Fukoku Capital Management, one of the most experienced Asset Management firms in the ESG field in Japan.

Proprietary sustainable investment process
The Fund adopts UOBAM’s proprietary sustainable investment framework. The ESG integration process is anchored by ‘Man-and-Machine’ – a combination of artificial learning and machine learning (AI-ML) with strong on-the-ground fundamental and ESG research.

 

Technology
The Fund combines ESG & AI-ML to shortlist companies with strong ESG and high potential return
On the ground ESG research
Dedicated regional ESG resources uncover under-researched ESG opportunities and conduct company engagement

 

ESG measurement
Every company in the Fund’s holdings is assessed using UOBAM’s methodology which combines ESG data, AI-ML models and UOBAM’s independent analysis. This methodology helps our clients to track, measure and understand the sustainability profile and performance of the Fund ensuring desired high sustainability quality is achieved.

 

More Information

Fund Name United Sustainable Asia Top-50 Fund
Investment Objective To achieve long-term capital appreciation by investing in 50 in total, of the top corporations incorporated in, or whose principal operations are in, Asia including Japan. These companies are selected following the Fund’s investment focus on ESG factors using UOBAM’s proprietary ESG selection process.
Fund Classes Available21 Class A SGD Acc , Class B SGD Acc
Subscription Mode Cash – SGD/USD
SRS – SGD
Minimum Subscription22 Class A: S$1000/US$1000 (initial); S$500/US$500 (subsequent)
Class B: S$500,000/US$500,000 (initial); S$100,000/US$100,000 (subsequent
Subscription Fee Currently up to 5%; maximum 5%
Management Fee Class A: Currently 1.50% p.a.; maximum 1.75% p.a.
Class B: Currently 0.75% p.a.; maximum 1.75% p.a.
Dealing Frequency & Deadline22 Generally every business day, on a forward pricing basis up till 3pm (Singapore time)

Notes:
1Source: UNFPA, June 2022 https://asiapacific.unfpa.org/en/populationtrends#:~:text=The%20Asia%20and%20the%20Pacific,Developing%20States%20in%20the%20Pacific
2Source: McKinsey & Company, Corporate Asia: A capital paradox, January 2020 https://www.mckinsey.com/featured-insights/asia-pacific/corporate-asia-a-capital-paradox
3Source: PwC, June 2022 https://www.pwc.com/gx/en/research-insights/economy/the-world-in-2050.html
4Source: Our World in Data, June 2022 https://ourworldindata.org/co2-emissions
5Source: Center for Green Finance Research (CGFR), National Institute of Financial Research of Tsinghua University, Pricing Climate Risks In Asia report, June 2022 https://www.ecosperity.sg/content/dam/ecosperity-aem/en/reports/Pricing-Climate-Risks-in-Asia-report-2022-web.pdf
6Source: Swiss RE Institute, April 2021 https://www.swissre.com/institute/research/topics-and-risk-dialogues/climate-and-natural-catastrophe-risk/expertise-publication-economics-of-climate-change.html
7Source: Climate Action Tracker, May 2022 https://climateactiontracker.org/countries/china/net-zero-targets/
8Source: Reuters, April 2021 https://www.reuters.com/world/china/chinas-xi-says-china-will-phase-down-coal-consumption-over-2026-2030-2021-04-22/
9Source: BBC News, November 2021 https://www.bbc.com/news/world-asia-india-59125143
10Source: Hindustan Times, March 2022 https://www.hindustantimes.com/business/india-aims-for-50-installed-energy-capacity-through-non-fossil-fuel-by-2030-pm-101646383692247.html
11Source: Energy Tracker Asia, December 2021 https://energytracker.asia/japan-net-zero-roadmap-a-focus-on-innovation-and-investment/
12Source: Bloomberg, June 2022 https://www.bloomberg.com/news/articles/2022-06-23/japan-to-end-financing-to-key-coal-projects-under-climate-pledge
13Source: Eco-Business, February 2022 https://www.eco-business.com/news/singapore-hikes-carbon-price-announces-2050-net-zero-target/
14Source: National Climate Change Secretariat, November 2021 https://www.nccs.gov.sg/media/press-release/sg-phase-out-unabated-coal
15Source: Climate Action Tracker, Mar 2022 https://climateactiontracker.org/countries/south-korea/net-zero-targets/
16Source: World Resources Institute, June 2021 https://www.wri.org/insights/south-korea-and-japan-will-end-overseas-coal-financing-will-china-catch
17Source: Thai Public Broadcasting Service, November 2021 https://www.thaipbsworld.com/thailand-vows-to-reach-net-zero-carbon-emissions-by-2065-at-cop26/
18Source: Energy Tracker Asia, November 2021 https://energytracker.asia/vietnam-coal-cop26/
19Bain & Company, Southeast Asia’s Green Economy 2022 Report, June 2022 https://www.bain.com/insights/southeast-asias-green-economy-2022/
20Please refer to uobam.com.sg/awards for the latest list of UOBAM awards.
21Investors should refer to the Fund’s prospectus for more details on the different classes available.
22Please refer to the Fund’s prospectus for more details.

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MSCI Data are exclusive property of MSCI. MSCI Data are provided “as is”, MSCI bears no liability for or in connection with MSCI Data. Please see complete MSCI disclaimer here.

This document is for general information only. It does not constitute an offer or solicitation to deal in units in the Fund (“Units”) or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. The information is based on certain assumptions, information and conditions available as at the date of this document and may be subject to change at any time without notice. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOB Asset Management Ltd (“UOBAM”) and any past performance, prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiary, associate or affiliate (“UOB Group”) or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund. Investors should read the Fund’s prospectus, which is available and may be obtained from UOBAM or any of its appointed agents or distributors, before investing. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you. Applications for Units must be made on the application forms accompanying the Fund’s prospectus.

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