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.
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.
ESG measurement
Every new issue is assessed using UOBAM’s methodology that combines ESG data, artificial intelligence-machine learning (AI-ML) models and UOBAM’s independent analysis. The sustainability dashboard helps our clients understand the sustainability performance of SSS as well as the sustainability profile from investments made into the underlying bonds that are mapped to the three core investment themes.
The portfolio has an ESG Rating of “B” with a score of 6.9 out of 10, which is higher than its comparable benchmark, the JP Morgan ESG Asia Credit Investment Grade Bond Index.
Source: UOBAM, 31 December 2022
Scale of the Portfolio ESG score is from 0 (minimum) to 10 (maximum). Portfolio ESG rating is based on UOBAM's methodology
Index: JP Morgan ESG Asia Credit Investment Grade Bond Index
Preparing for Climate Change
Source: UOBAM, 31 December 2022
Index: JP Morgan ESG Asia Credit Investment Grade Bond Index
For every million SGD of revenue generated by the Fund’s portfolio of companies, the portfolio constituents emit 120.34 tCO2e* less compared to Index, which is equivalent to 160,088 round trips from Central Business District to Changi Airport.
*tonnes (t) of carbon dioxide (CO2) equivalent
Absolute Carbon Emissions
Fund's estimated greenhouse gas emissions generated by companies and its operations, and from their direct suppliers
Weighted Average Carbon Intensity
Fund's exposure to carbon intensive companies based on sum of the weights of issuers multiplied by the companies’ carbon intensities
Carbon Reduction Target
Whether a company sets absolute or relative targets to reduce its carbon footprint (greenhouse gas emissions or emissions intensity) in managing its climate-related risks and opportunities
Green, Clean and Smart Singapore
Source: UOBAM, 31 December 2022
Index: JP Morgan ESG Asia Credit Investment Grade Bond Index
MWh: Megawatts hour ; m3 : cubic meter
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For every million SGD of revenue generated by the Fund’s portfolio of companies, the portfolio constituents uses 237MWh less compared to Index, which is equivalent to powering 719 three-room HDB flats for 1 month. |
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For every million SGD of revenue generated by the Fund’s portfolio of companies, the portfolio constituents consume 346.12m3 less compared to Index, which is equivalent to 524,424 L-sized bubble teas. |
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For every million SGD of revenue generated by the Fund’s portfolio of companies, the portfolio constituents generate 7.79 tonnes less compared to Index, which is equivalent to 5,193 1.5kg durians. |
Weighted Average Energy Intensity
Fund's exposure to energy intensive companies based on sum of the weights of issuers multiplied by the companies’ energy intensities
Weighted Average Water Intensity
Fund's exposure to water intensive businesses based on sum of the weights of issuers multiplied by the companies’ water intensities
Weighted Average Waste Intensity
Fund's exposure to businesses that are generating high volumes of waste or hazardous waste degrades the environment based on sum of the weights of issuers multiplied by the companies’ waste intensities
% of Companies with Green & Clean Tech Revenue
% of companies with revenue generated from green & clean technology or initiatives (e.g. Alternative Energy, High Energy Efficiency, Green Building, Pollution Prevention & Control, Sustainable Water)
Sustainable Production
Source: UOBAM, 31 December 2022
Index: JP Morgan ESG Asia Credit Investment Grade Bond Index
For every million SGD of revenue generated by the Fund’s portfolio of companies, the portfolio constituents generate S$3,314 of cost less compared to Index, which is equivalent to 879 packets of chicken rice.
Supply Chain Environmental Cost
A company's estimated total environmental external cost from its supply chain activities
Supply Chain Controversies
Number of controversies related to supply chain labour standards in which the company has been involved in the past three years
| 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% |
| Fund Classes Available1 | 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 Subscription2 | 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 5%; 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 & Deadline3 | Generally every business day, on a forward pricing basis up till 3pm (Singapore time). |
| Distribution Policy4 | The current distribution policy is to make regular quarterly distributions of 2.0% 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. |
Notes:
1Investors 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.
2Please refer to the Fund's prospectus for more details.
3Please check with the distributor(s) or refer to the Fund's prospectus for more details.
4Distributions 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.
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.
For more information on the list of awards won by UOBAM, visit uobam.com.sg
Important notes and disclaimers:
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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