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.

 

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 Asia ESG Leaders (annualised 3.73%) leads to outperformance vs Broad Asian Equities (annualised 2.72%).

Source: Factset, UOBAM Analysis, as at 30 June 2022, in SGD terms, on a 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 4.02% (as at 30 June 2022). Its benchmark, the MSCI AC Asia Index, fell by -2.36% in the same period.

Source: Morningstar, as at 30 June 2022, 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 impact measurement
To ensure that the Fund makes a real impact, 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. The impact dashboard helps our clients understand the sustainability performance of the Fund.

The portfolio has ESG Rating of “A” with a score of 7.7 out of 10, which is higher than its comparable benchmark, the MSCI AC Asia Index.

 

Source: UOBAM, as at 30 September 2022
Benchmark: MSCI AC Asia Index

Environmental

The Fund lowers the portfolio’s carbon footprint by 4.5% compared to its benchmark. It saves 333,000 tons of CO2 emissions comparing to its Benchmark, which equals more than 150,000 round trips from Singapore to London avoided.

Source: UOBAM, as at 30 September 2022
Benchmark: MSCI AC Asia Index

Social

The Fund has higher human capital development score of 5.1% and a labour management score of 6.3%. The scores indicate whether the portfolio companies can retain and develop human capital and whether they are vulnerable to labour disruptions.

Source: UOBAM, as at 30 September 2022
Benchmark: MSCI AC Asia Index

Governance

The Fund is on par for corporate governance in the terms of accounting, board, ownership, and pay compared to its benchmark.

Source: UOBAM, as at 30 September 2022
Benchmark: MSCI AC Asia Index

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 (Acc) SGD, Class A (Acc) USD
Subscription Mode Cash – SGD/USD
SRS – SGD
Minimum Subscription22 S$1,000/US$1,000 (initial)
S$500/US$500 (subsequent)
Subscription Fee Currently up to 5%; maximum 5%
Management Fee Currently 1.50% p.a., maximum 1.75% p.a.
Dealing Frequency & Deadline22 Generally every business day, on a forward pricing basis up till 3pm (Singapore time)
Distribution Policy23 There is currently no distribution policy for the Fund.

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/
20Past performance is not necessarily indicative of future performance. Please refer to www.uobam.com.sg/about-us/awards.page for a full list of our 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.
23Investors should note that the intention of UOBAM to make the distribution is not guaranteed. If distributions are made, such distributions are not in any way a forecast, indication or projection of the future or likely performance of the Fund. UOBAM reserves the right to vary the frequency and/or amount of distributions. Distributions from a fund may be made out of income and/or capital gains and (if income and/or capital gains are insufficient) out of capital. Investors should also note that the declaration and/or payment of distributions (whether out of income, capital gains, capital or otherwise) may have the effect of lowering the net asset value (NAV) of the relevant fund. Moreover, distributions out of capital may amount to a reduction of part of your original investment and may result in reduced future returns. Please refer to the Fund’s prospectus for more information on the distributions by the Fund.

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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. 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.
This advertisement has not been reviewed by the Monetary Authority of Singapore.