
Environmental, Social, and Governance (ESG) Portfolios
- As of 30 September 2022, UOBAM Invest portfolio returns for the third quarter, 2022 ranged between -2.6 percent and -5.3 percent
Portfolio returns (% in SGD terms) 30 June – 30 September 2022
Source: Factset/Bloomberg/UOBAM. Portfolio returns as at 30 Sep 2022.
Benchmark composition:
Very Conservative: 20% MSCI ACWI + 80% Bloomberg Global Aggregate Index,
Conservative: 40% MSCI ACWI + 60% Bloomberg Global Aggregate Index,
Moderate: 60% MSCI ACWI + 40% Bloomberg Global Aggregate Index,
Aggressive: 80% MSCI ACWI + 20% Bloomberg Global Aggregate Index,
Very aggressive: 100% MSCI ACWI on a Net Asset Value basis.
Past performance of the portfolio or UOBAM and any past performance, prediction, projection or forecast on the economy or markets are not necessarily indicative of the future or likely performance of the portfolio or UOBAM. Portfolio returns on the scheme is calculated on a single pricing basis.
1. Very Conservative portfolio
Period |
Portfolio Return (%) |
Benchmark Returns (%) |
3 months |
-2.6 |
-3.6 |
6 months |
-10.6 |
-9.5 |
1 year |
-17.0 |
-12.9 |
Since Inception (26 July 2020) |
-6.7 (annualised) |
-4.1 |
Source: UOBAM as of 30 September 2022. Benchmark composition: 20% MSCI ACWI + 80% Bloomberg Global Aggregate Index | US REITs: US Real Estate Investment Trusts
Since inception returns are annualised | The information about asset allocation provided herein are subject to change at the discretion of UOBAM without prior notice. Past performance of the portfolio or UOBAM and any past performance, prediction, projection or forecast on the economy or markets are not necessarily indicative of the future or likely performance of the portfolio or UOBAM. Returns are calculated on a single pricing basis.
Over the past three months, this portfolio performed better than the benchmark. It was weighed down by Asian equities, as well as European equities despite the small allocation. However, being out of US equities before they were sold off in August helped to mitigate losses.
Over the one-year period, the portfolio has underperformed mainly due to its weak emerging market government bond performance relative to global bonds. We have since capped the emerging market bond allocation to 10 percent.
2. Conservative portfolio
Period |
Portfolio Return (%) |
Benchmark Returns (%) |
3 months |
-3.9 |
-3.7 |
6 months |
-9.4 |
-11.3 |
1 year |
-12.0 |
-13.6 |
Since Inception (26 July 2020) |
-2.5 (annualised) |
-2.1 |
Source: UOBAM as of 30 September 2022. Benchmark composition: 40% MSCI ACWI + 60% Bloomberg Global Aggregate Index | US REITs: US Real Estate Investment Trusts
Since inception returns are annualised | The information about asset allocation provided herein are subject to change at the discretion of UOBAM without prior notice. Past performance of the portfolio or UOBAM and any past performance, prediction, projection or forecast on the economy or markets are not necessarily indicative of the future or likely performance of the portfolio or UOBAM. Returns are calculated on a single pricing basis.
Over the past three months, this portfolio has been weighed down by its allocation to Asian and global equities, as well as global investment grade bonds. However, being out of US equities before they were sold off in August helped to mitigate losses.
3. Moderate portfolio
Period |
Portfolio Return (%) |
Benchmark Returns (%) |
3 months |
-4.4 |
-3.8 |
6 months |
-11.2 |
-13.1 |
1 year |
-12.7 |
-14.4 |
Since Inception (26 July 2020) |
-1.1 (annualised) |
-0.1 |
Source: UOBAM as of 30 September 2022. Benchmark composition: 60% MSCI ACWI + 40% Bloomberg Global Aggregate Index | US REITs: US Real Estate Investment Trusts
Since inception returns are annualised | The information about asset allocation provided herein are subject to change at the discretion of UOBAM without prior notice. Past performance of the portfolio or UOBAM and any past performance, prediction, projection or forecast on the economy or markets are not necessarily indicative of the future or likely performance of the portfolio or UOBAM. Returns are calculated on a single pricing basis.
Over the past three months, this portfolio has been weighed down by its allocation to Asian and global equities, as well as global investment grade bonds. However, being out of US equities before they were sold off in August helped to mitigate losses.
4. Aggressive portfolio
Period |
Portfolio Return (%) |
Benchmark Returns (%) |
3 months |
-5.3 |
-3.8 |
6 months |
-16.8 |
-14.9 |
1 year |
-18.7 |
-15.3 |
Since Inception (26 July 2020) |
-0.8 (annualised) |
-1.9 |
Source: UOBAM as of 30 September 2022. Benchmark composition: 80% MSCI ACWI + 20% Bloomberg Global Aggregate Index | US REITs: US Real Estate Investment Trusts
Since inception returns are annualised | The information about asset allocation provided herein are subject to change at the discretion of UOBAM without prior notice. Past performance of the portfolio or UOBAM and any past performance, prediction, projection or forecast on the economy or markets are not necessarily indicative of the future or likely performance of the portfolio or UOBAM. Returns are calculated on a single pricing basis.
Over the past three months, this portfolio has been weighed down by its sizeable equity allocation. Its exposure to Asian equities caused the bulk of the underperformance.
5. Very Aggressive portfolio
Period |
Portfolio Return (%) |
Benchmark Returns (%) |
3 months |
-4.8 |
-3.9 |
6 months |
-13.5 |
-16.7 |
1 year |
-12.9 |
-16.1 |
Since Inception (26 July 2020) |
-0.8 (annualised) |
-3.8 |
Source: UOBAM as of 30 September 2022. Benchmark composition: 100% MSCI ACWI on a Net Asset Value basis US REITs: US Real Estate Investment Trusts
Since inception returns are annualised | The information about asset allocation provided herein are subject to change at the discretion of UOBAM without prior notice. Past performance of the portfolio or UOBAM and any past performance, prediction, projection or forecast on the economy or markets are not necessarily indicative of the future or likely performance of the portfolio or UOBAM. Returns are calculated on a single pricing basis.
Over the past three months, this portfolio has been weighed down by its sizeable equity allocation. Given the weakened market confidence in August, the allocation to US equities caused the bulk of the underperformance.
Over the one-year period, this portfolio has underperformed mainly due to the weak Asian equities performance relative to global equities. We have since capped the allocation to Asian equities to 20 percent of the portfolio.
Looking ahead
- We expect the global economy to slow but employment should remain resilient
- We believe equities are likely to be rangebound for the rest of the year before beginning any sustained uptrend
- We are becoming more positive of bonds amid attractive yields and a potential peak in rates
Looking forward into 4Q 2022, we believe that core inflation will persist, but overall inflationary pressure appears to be moderating. As such, we expect central banks to continue hiking rates through early 2023. While the risks of a recession are growing, we expect the services economy to remain resilient.
As such, we expect equities to be rangebound for the rest of the year before any sustained uptrend takes place. For fixed income, we are becoming more positive as yields climb and approach peak rates. We continue to expect the US dollar to be supported by relatively tighter monetary policy compared to other regions.
Over in Asia, we note that Chinese equities are trading at a significant discount to US/Global equities. We expect the Chinese government to announce more stimulus measures to help stimulate growth.
We recommend investors to build their wealth by remaining invested for the long term and take advantage of the market weakness by dollar cost averaging.