UOB Asset Management (UOBAM) launched on March 27 the United Sustainable Credit Income Fund (USCIF), the first bond fund in Singapore for retail investors which focuses on bonds from companies that are making progress against the United Nations (UN) Sustainable Development Goals (SDGs).

The UN SDGs set the global agenda for sustainable economic, social and environmental development to be achieved by 2030.

Through the USCIF, retail investors will invest into the RobecoSAM SDG Credit Income Fund (the underlying fund). Managed by international asset manager Robeco, the underlying fund was previously available only to institutional investors and high-net-worth individuals. The multi-sector USCIF aims to offer stable income through monthly dividend distributions.

Using a proprietary framework developed by Robeco and RobecoSAM, the underlying fund assesses investible companies’ contributions towards the UN SDGs by evaluating the sustainability impact of their products, operational processes and business practices.

The assessment also helps to identify companies that are able to remain competitive and relevant in the transition to a more sustainable economy, thereby limiting investments in companies with a higher risk of default in the future.

As the underlying fund is not assessed against a benchmark, it has the flexibility to select bonds, including green bonds, which are attractive in terms of both yield and their SDG-related efforts. In doing so, the underlying fund aims to maintain a high and consistent level of income.

“With more Singapore investors including environmental, social and governance (ESG) considerations in their investment decisions, we are excited to partner Robeco to offer investors the opportunity to do good while also enjoying stable income amid current market volatility,” says Thio Boon Kiat, group CEO of UOBAM.

UOBAM is one of the first regional asset management firms in Singapore to become a signatory of the UN-supported Principles for Responsible Investment. It is also a signatory to the Singapore Stewardship Principles for Responsible Investors.

Since 2017, UOBAM has been progressively incorporating ESG factors in its investment research and securities evaluation and approval processes and is expected to complete the implementation for all asset classes in 2020.

The USCIF is UOBAM’s first fund in its offering of sustainable solutions.