Schroder Investment Management (Singapore) has launched the Schroder ISF Sustainable Multi-Asset Income (SMAI), a multi-asset fund that offers retail investors the option of making a lasting impact on society and the environment without compromising on making quality income, on September 21.
Schroders is one of the first asset managers in the world to launch such a fund that focuses on both delivering income and sustainability outcomes.
The fund harvests income from a broad range of asset classes and seeks to deliver stable total returns underpinned by steady income.
HSBC Singapore is the exclusive distribution partner for this fund.
“The Covid-19 pandemic has sharpened focus on environmental, social and governance (ESG) risk with recognition amongst investors and institutions over how these factors are becoming increasingly material to investment outcomes,” says Lily Choh, deputy CEO, Singapore and head of distribution, SEA, Schroders.
To that end, Choh cites the findings from Schroders’ latest global investor study that shows 43% of investors in Singapore now frequently invest in sustainable investment funds, compared to the 31% from two years ago.
“For investors seeking income, this challenges the notion that there needs to be a trade-off and you must forgo attractive income if you are investing sustainably. At Schroders, we have invested significantly in developing resources and tools to help our investment teams better understand the threat that ESG risks pose to portfolios and provide investors with transparent and in-depth reporting about the impact of their investments,” Choh adds.
HSBC customers will be able to invest in SMAI from $1,000. The fund’s base currency is in EUR, but SGD, USD, and AUD hedged classes are also available to investors.
The fund aims to deliver a natural base level of income of 3 to 5% per annum (p.a.) paid monthly, by investing across a diverse range of asset classes and regions, including investments that target better sustainable outcomes like carbon neutral equities and green bonds. The fund’s SGD, USD and AUD hedged share classes most recently delivered an annualised payout of 4.5%, according to Schroders.
A key feature of the fund is that Schroders produces in-depth reports with different sustainability lenses to provide greater clarity and insight on the impact of their clients’ investments. The reports include the fund’s carbon profile, as well as positive characteristics relative to the United Nation’s Sustainable Development Goals.
“ESG issues continue to play a key and integral part in how we unlock sustainable investment opportunities for our clients. Recent global climate events have further heightened the urgency for our customers to pivot towards a more sustainable future – not just in terms of how they live, but also how they can invest responsibly,” says Ian Yim, head of wealth and international at HSBC Bank (Singapore).
“The Schroder ISF Sustainable Multi-Asset Income fund, being one of the first of its kind in the market, compliments our range of ESG fund strategies. This fund balances our customers’ search for yield amidst the current low interest rate environment and their desire to make a difference to our environment,” Yim adds.
