United Smart Sustainable Singapore Bond Fund (SSS)

  • United Sustainable Credit Income FundUnited Sustainable Credit Income Fund

About United Smart Sustainable Singapore Bond Fund (SSS)

Investors are looking to see how they can do their part for the environment, while also generating returns. The United Smart Sustainable Singapore Bond Fund allows investors to do just that. Powered by Artificial Intelligence (AI), machine learning and UOBAM’s independent analysis, investors can make a real and meaningful contribution towards enhancing Environmental, social and corporate governance (ESG) in Singapore.

 

Securing Singapore's Sustainable Future

The Fund’s investment themes directly support Singapore’s green development plans in three key areas:

Green, Clean and Smart Singapore Preparing for Climate Change Sustainable Production
The Fund explores the uses of innovations and technological solutions aimed at creating a sustainable city. The Fund aims to contribute to solutions that can reduce and remove the harmful impact of climate change. The Fund aims to ensure that the production of goods and services is sustainable at all times, including the establishment of resilient and sustainable supply chains.

Why Invest

UOBAM believes companies that incorporate Sustainability/ESG factors/frameworks are more resilient, more focused on their long-term business viability and hence are more likely to remain competitive in the long-term. Accordingly, SSS will invest in bonds issued by companies that are successful in incorporating Sustainability/ESG factors/frameworks, are competitive, well managed and offer attractive growth prospects over a multi-year investment horizon.

The SSS is the First Singapore Focused ESG Fixed Income Fund to provide profit, purpose and payout. Creating an opportunity to invest and benefit in Singapore.

 

Current State of Sustainability in Singapore

The growing importance of Sustainability in Singapore has led to Singapore raising its national climate target to achieve net zero emissions by 20501. Furthermore, the issues surrounding Sustainability is multi faceted and require substantial funding to support immediate action and strategic long term solutions which will enable Singapore to achieve its goal of a Climate Resilient & Sustainable Future.

Source: greenplan.gov.sg, December 2023

 

Positive Risk Adjusted Returns^

Singapore Bond Funds provide positive risk adjusted returns. In the past ten years, Singapore Bond Funds delivered a return of 2.02% p.a. with an annualised volatility of 2.96% p.a. and from a Return/Risk perspective provides the best Return/Risk profile versus funds from major asset classes.

Source: Morningstar, as at 31 December 2023. Return/Risk is calculated by Return ( Annualised ) ÷ Standard Deviation ( Annualised ). Global EM Bonds - Morningstar EAA Fund Global Emerging Markets Bond, Asian Bonds - Morningstar EAA Fund Asia Bond, Global Bonds - Morningstar EAA Fund Global Bond, Global High Yield Bonds - Morningstar EAA Fund Global High Yield Bond. Past performance is not necessarily indicative of future performance. EM: Emerging Markets; EAA: Europe/Africa/Asia

^As shown in the above chart on Return/Risk of SGD Bonds from period 1 January 2014 to 31 December 2023

 

ESG measurement

Every company in the Fund's holdings is assessed using UOBAM's methodology which combines ESG data, artificial intelligence-machine learning (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 to achieve desired high sustainability quality.

The sustainability profile largely involves mapping every underlying security invested into at least one of the three core sustainability investment themes.

More Information

Fund Name
United Smart Sustainable Singapore Bond Fund
Investment Objective To provide stable income and capital appreciation over the medium to long term by investing predominantly in fixed income instruments focusing on Singapore. Investments will be selected following the Fund's investment focus and approach, which includes the consideration of Sustainability and Environmental, Social and Governance (ESG) factors.
Fund Manager UOB Asset Management Ltd
Benchmark 12 Months Singapore dollar Fixed Deposit +1% (from inception to 7 April 2022)
6M Compounded SORA +1% (8 April 2022 onwards)
Fund Classes Available2 Class A SGD Acc (Hedged)
Class A SGD Dist
Class A SGD Dist (Hedged)
Class A USD Dist (Hedged)
Class B USD Dist (Hedged)
Class U SGD Acc
Class Z SGD Dist (Hedged)
Subscription Mode Cash SGD/USD
SRS SGD
Minimum Subscription3 Class A: S$1000/US$1000 (initial); S$500/US$500 (subsequent)
Class B/U/Z: S$500,000/US$500,000 (initial); S$100,000/US$100,000 (subsequent)
Subscription Fee All Classes: Currently up to 2%; maximum 5%
Management Fee Class A: Currently 0.45% p.a., maximum 2.50% p.a.
Class B/U: Currently 0.25% p.a.; maximum 2.50% p.a.
Class Z: Currently none; maximum 2.50% p.a.
Dealing Frequency & Deadline4 Generally every business day, on a forward pricing basis up till 3pm (Singapore time).
Distribution Policy5 The current distribution policy is to make regular monthly distributions of 3.75% p.a.*

*Distributions (in SGD) are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund's prospectus.

1 Source: National Climate Change Secretariat Singapore, October 2022. https://www.nccs.gov.sg/media/press-releases/singapore-commits-to-achieve-net-zero/
2 Investors should refer to the Fund's prospectus for more details on the different classes available. Please check with our distributors on the availability of the Fund Classes
3 Please refer to the Fund's prospectus for more details.
4 Please check with the distributor(s) or refer to the Fund's prospectus for more details.
5 Distributions will be made in respect of the Distribution Classes of the Fund. Distributions are based on the net asset value (NAV) per unit of the relevant Distribution Class as at the last business day of the calendar quarter or month. The making of distributions is at the absolute discretion of UOBAM and that distributions are not guaranteed. The making of any distribution shall not be taken to imply that further distributions will be made. 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 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 www.uobam.com.sg and Fund's prospectus for more information.

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Our commitment to sustainable investing

UOB Asset Management is a signatory of the UN-supported Principles for Responsible Investment (PRI)4 and we are committed to provide sustainable investment solutions for investors across Asia.

PRI SG

For more information on the list of awards won by UOBAM, visit uobam.com.sg

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.

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