KUALA LUMPUR: UOB Asset Management (Malaysia) recently launched the United Sustainable Series - Global Credits Fund (USSGCF), as interest in sustainable and responsible investing gathers momentum.

       In a statement on Monday, UOBAM Malaysia said this is its first wholesale fund that focuses on bonds from companies making progress against the United Nations (UN) Sustainable Development Goals (SDGs).

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

       The USSGCF seeks to achieve its investment objective by investing a minimum of 90% of its net asset value in the target fund -- RobecoSAM SDG Credit Income.

       The target fund offers investors diversified exposure to the global credit markets and aims to maximise income throughout the credit cycle.

       UOBAM (Malaysia) CEO Lim Suet Ling said UOBAM believes in investing for purpose and providing positive returns.

       “We have seen an increasing interest in environmental, social and governance (ESG)-focused funds that deliver positive impact, particularly among sophisticated investors who are playing an important role in influencing the adoption of ESG.

       “There is also growing evidence that aligning investment values can translate to consistent outperformance of returns in the long term.” As for Robeco Institutional Asset Management B.V. (Robeco), it has been in sustainable investing since 1990. As at end-June 2021, it managed €177bil worth of ESG-integrated assets.

       Lim said the partnering with Robeco will provide a sustainable future by offering investors the opportunity to do good while also enjoying stable income.

       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. This limits investments in companies with higher risk of default in the future.

       The target fund will also not invest in corporate bonds that detract from these goals or have a negative SDG rating. The USSGCF is suitable for sophisticated investors who have conservative risk profiles, have long-term investment horizons and seek capital growth by investing in a portfolio of global fixed -income instruments.

       It 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.