Nikko Asset Management has launched a multi-asset fund for retail investors with the aim to deliver long-term returns while generating positive social and environmental impact. The Nikko AM (NAM) Impact Investing Multi Asset Fund will invest only in companies with a measurable positive effect on society or the environment through its core products and services

“We believe the interest of retail investors in impact investing is underserved in the region,” says Eleanor Seet, NAM’s head of Asia ex-Japan. “With this fund, retail investors in Singapore will have the chance to align their investments with enterprises that we see making a real difference in the world.”

Seet says the fund will focus on three broad impact areas – life essentials, human empowerment, and the environment – and their sub-themes, which are aligned with the United Nations’ Sustainable Development Goals.

“We are very pleased to have Tsao Family Office, a strong advocate of impact investing, partner us as a cornerstone investor, and iFAST and FSMOne as the exclusive distributor of this fund,” she adds.

The fund will invest in global equities and investment-grade fixed income securities. It feeds into two underlying funds – Wellington Global Impact Fund and Wellington Global Impact Bond Fund – with a dynamic asset allocation subject to a maximum of 60% of the net asset value of the fund into each.

The underlying funds managed by Wellington Management Company have the ability to measure a company’s social or environmental impact, Nikko AM says. Once it is determined that a company meets the criteria for impact, a set of key performers indicators to track that company’s progress towards the impact goals is developed.

The initial offer period is from September 9 to October 10. The fund’s base currency is in US dollar but it also has a Singapore dollar hedged class.