Schroder Investment Management (Singapore) has launched its ISF Sustainable MultiAsset Income (SMAI) fund that offers a solution to retail investors who want to make a lasting impact on society and the environment, without compromising on income.
The strategy is attractive in the current environment as investors need to contend with the dual challenges of persistently low yields and an increased urgency to prioritize rising sustainability risks heightened by the global Covid-19 pandemic and recent climate events.
By building a well-diversified portfolio of sustainable businesses, the fund aims to draw income from a broad range of asset classes and deliver a stable total return underpinned by steady income. HSBC Singapore is the fund's distributor.
“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, Schroders’s deputy CEO, Singapore, and head of distribution, Southeast Asia. “Sceptics have long argued that growing interest in sustainability would not be supported as markets become more challenging.
“The current crisis has put sustainable investment in the forefront of investors’ minds with growing evidence that sustainable business models are more resilient and better able to withstand market shocks. 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.”