Schroders & HSBC launch sustainable food/water fund
Schroders Singapore launched the Schroder ISF Global Sustainable Food and Water fund recently. The fund's exclusive distribution partner is HSBC Singapore. Following the launch of the Schroder ISF Sustainable Multi-Asset Income fund in 2020, this is the second sustainability-focused strategy.
The fund, which is part of Schroders' Global Transformation Range, is a global equity portfolio that invests in global companies that aim to provide sustainable food and water.
The fund will take an unconstrained, high-conviction approach, allocating between 35 and 60 stocks across value chains, including water management, agricultural equipment, agricultural inputs, food production and processing, packaging distribution and recycling, and food retail.
The fund's aim, according to Schroders, will be to discover long-term, sustainable profits and cash flow growth at a reasonable price.
Lily Choh, CEO of Schroders Singapore, said:
"The global food and water system is currently unsustainable and faces intense pressure with the continued growth in the global population and the effects of climate change. An estimated US$30 trillion ($42.34 trillion) of investment will need to be spent by 2050 to reduce greenhouse gas emissions by two-thirds and meet the two-degree goal set in the Paris accord while sustainably providing food and water to an expected global population of 10 billion.
“At Schroders, we believe in taking the lead in reorientating capital towards companies in the food and water systems that are transitioning to a more sustainable future. This is in line with the findings of our recent Global Investor Study 2022, which found that Singapore investors place high importance on environment-related issues, with climate as well as natural capital, and biodiversity ranked as the top two engagement priorities. We believe these companies re-imagining the food and water supply chain will be in great demand and possess strong long-term growth potential."
Jeffrey Yap, head of investments and wealth solutions, Southeast Asia, private banking & wealth at HSBC, said:
"As a bank, we are in the position to unlock sustainable investment opportunities and help investors influence change. The Schroder ISF Global Sustainable Food and Water fund, which was first made available to our private banking clients, is a prime example of how we can seamlessly bring environmental, social and governance (ESG)-themed investment ideas to our clients from across the wealth continuum.”
With a minimum investment of US$1000, HSBC retail banking clients in Singapore can invest in the Schroder ISF Global Sustainable Food and Water fund. The fund's base currency is USD, but hedged classes in SGD, EUR, and GBP are also available to investors.
The fund is classified under Article 9 of the European Union (EU) Sustainable Finance Disclosure Regulation.
Source: The Edge