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UOBAM (Malaysia) launches ESG credit fund

It is the firm’s first wholesale fund that focuses on bonds from companies targeting the United Nations Sustainable Development Goals (UN SDGs).
Scenic View of Bohey dulang in Tun Sakaran Marine Park tropical islands Semporna, Sabah Borneo Malaysia. Bohey dulang is an ancient volcano located in Borneo island. The surrounding area is famous for scuba diving and snorkeling. It is also close to Sipadan Island, the top 5 dive site in the world.

The United Sustainable Series – Global Credits Fund (USSGCF) is being introduced to retail investors as “interest in sustainable and responsible investing gathers momentum” in Malaysia, according to the Singapore-headquartered asset manager.

“We have seen an increasing interest in ESG-focused funds that deliver positive impact, particularly among sophisticated investors who are playing an important role in influencing the adoption of ESG,” said UOB Asset Management (Malaysia) CEO Lim Suet Ling.

The USSGCF aims to achieve its investment objective by investing a minimum of 90% of its net asset value in a target product – the RobecoSAM SDG Credit Income Fund, which intends to provide investors diversified exposure to the global credit markets and maximise income throughout the credit cycle.

Robeco Institutional Asset Management (Robeco), has been making sustainable investments since 1990. As at end of June 2021, it managed €177bn ($205bn) worth of ESG-integrated assets.

The target fund applies a proprietary measurement framework to quantify companies’ contributions to the 17 UN SDGs.

The assessment also helps to identify companies that are able to remain competitive and relevant in the transition to a more sustainable economy, and hence avoid future defaults. The target fund will also not invest in corporate bonds that detract from these goals or have a negative SDG rating

The USSGCF is available for subscription in ringgit, Australian dollar, pound sterling, Singapore dollar, US dollar and Chinese renminbi with a minimum initial investment of RM1,000, A$1,000, US$1,000, £1,000 and RMB1,000 respectively.

Last month UOBAM launched its first Singapore-focused ESG fund, which invests in green, social and sustainability-linked bonds.

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