Sustainable Investing

  • Sustainable InvestingSustainable Investing

Why Sustainability Matters

What is Sustainable Investing?

Our world today is shaped by new realities.

Global trends – ranging from environmental concerns such as climate change to evolving societal expectations and increasing regulation – have fundamentally altered not just our daily lives but also the investment landscape.

With trillions of dollars being channeled towards investments that consider the impact of business practices on the environment and society, new opportunities have emerged as companies adapt to meet stricter regulatory requirements and consumers’ growing awareness of environmental, social and governance (ESG) considerations.

Sustainable investing, which incorporates ESG considerations into traditional investment strategies, has now entered the mainstream. This approach enables you to better manage risks, unlock unrealised value and tap new opportunities – while playing your part for a better world. In short, sustainable investing helps you build a portfolio that performs with purpose.

Sustainable investing enables you to better manage risks, unlock unrealised value and tap new opportunities – while playing your part for a better world.

What are ESG factors?

ESG

Environmental

Issues concerning the natural world,
such as

  • carbon emissions
  • water usage
  • waste management
  • pollution
  • energy efficiency

Social

Issues related to the
wellbeing of people, such as

  • health and safety standards
  • labour standards
  • inclusivity and employee diversity
  • privacy and data security
  • community relations

Governance

Issues relating to how companies are run, such as

  • business ethics
  • bribery and corruption
  • accounting and audit practices
  • board independence and composition
  • shareholder protection

Why Sustainable Investing?

Doing good for society does not come at the expense of returns. Organisations across sectors are finding that operating sustainably, in line with public opinion, comes hand-in-hand with profits and business growth. This means sustainable investing is here to stay.

Sustainable Investing can help you…

  • Manage risk better

    Manage risk better

    Steer clear of companies which are exposed to hidden risks due to potential ESG issues

  • Capture opportunities

    Capture opportunities

    Invest in companies that help address the world’s largest issues, as these companies are more likely to stay relevant and deliver growth and returns in the future

  • Make a positive impact

    Make a positive impact

    Put your money towards building a
    better world

Our Risk-First Approach

We believe that when financial risks are well managed, you are better positioned to achieve your wealth goals in a sustainable manner.

Through our advisory and the solutions we offer, our proprietary Risk-First approach enables you to optimise your wealth portfolio according to your willingness and ability to take risks.

The UOB Risk-First approach

Sustainable investing is well-aligned with our Risk-First approach.

The UOB Risk-First approach The UOB Risk-First approach
Tactical strategy
Core strategy

In addition, sustainable investing allows you to capture market opportunities and enhance your assets by helping you gain exposure to companies that are developing innovative answers to global challenges. These companies are poised to grow, as longer-term trends such as climate change and demographic growth drive greater demand for their products and services.

By channelling your money towards companies that are actively addressing ESG concerns and away from those that are not, sustainable investing helps mitigate both immediate and long-term risks. This can help you generate more sustainable returns in building your assets.

Selecting the Right Investments

Harnessing the expertise of global ESG leaders

We partner with firms that are well-respected specialists in their respective fields to provide, screen, score or monitor sustainable investment products for you.

Our specialist partners include:

  • Research, ratings and data specialists, including Bloomberg, Morningstar and Sustainalytics
  • Financial institutions with award-winning ESG capabilities

Working with renowned specialists in each area helps ensure we provide the strongest sustainable investment options to our clients, backed by robust criteria and methodologies. For more information, please explore our different sustainable investment solutions.

 

Explore our Solutions

Our Risk-First approach guides the selection of sustainable investment solutions that we offer across different asset classes to suit various investor profiles, goals and risk appetites.

These solutions reflect an understanding of your need for long-term and allow you to invest in companies that have changed their business models to make a positive impact both environmentally and socially.

UOB’s Sustainable Investment Options

  • Unit Trusts

    Unit trusts

    that invest in companies which are meeting the demands of the new world and making a positive impact on our environment and society.

    Show more
  • Green Bonds

    Green bonds

    of companies that have raised funds to finance environmental and climate-related projects

    Show more
  • Structured Notes

    Structured notes

    linked to underlying assets that have embedded ESG considerations as part of their business models and processes.

    Show more

that invest in companies which are meeting the demands of the new world and making a positive impact on our environment and society.

Allianz Global Sustainability is a fund that invests in quality global stocks with sustainable growth, at reasonable valuations, while also aiming to have a positive and measurable impact on society.

Launched in 1999, the fund is one of the oldest and best-rated sustainable investing funds in the market. It is backed by a stable, experienced investment team and has delivered long-term consistent performance.

In addition to seeking long-term capital growth, the fund also aims to provide a stable income stream from monthly dividends.

Proven performance, positive societal impact
Quality: Stable above-average returns
  • Long-term competitive advantage
  • Strong balance sheets
  • High barriers to entry
  • Strong management
  • Capital discipline
  • Demonstrated high level of ESG performance
Secular growth
  • Market leader with superior business model
  • Brand strength
  • Technology edge
  • Long-term environment and/ or social opportunities
Value, not just “cheap”
  • Attractive valuations based on a range of financial metrics

Source: Allianz Global Investors. There is no guarantee that these investment strategies and processes will be effective under all market conditions and investors should evaluate their ability to invest for a long-term based on their individual risk profile especially during periods of downturn in the market.

The United Sustainable Credit Income Fund provides diversified exposure to global bonds and other credit markets and aims to maximise income throughout market ups and downs. Companies are evaluated so as to exclude those with a negative impact on the United Nations Sustainable Development Goals (SDGs).

The fund invests in the RobecoSAM SDG Credit Income as its underlying fund, which is managed by Robeco, a specialist at the forefront of sustainable investing since 1990. Robeco’s fixed income team is one of the largest in Europe, consisting of more than 30 investment professionals with an average of 18 years of experience.

The fund aims to provides a steady income stream distributed on a monthly basis, with the objective of maximising income throughout market ups and downs.

The underlying fund has the flexibility to invest in the most attractive opportunities across sectors and regions. A prudent approach is taken so as to generate stable, recurring income for investors across market cycles.

Finding opportunities throughout market ups and downs

Mapping the opportunity set to the credit cycle Source: Robeco. These examples are for your information purposes only and are not intended to be investment advice in any way. The value of your investments may fluctuate. Results obtained in the past are no guarantee for the future.

The underlying fund applies a proprietary measurement framework to quantify companies’ contributions to the 17 United Nations Sustainable Development Goals (SDGs) and will not invest in bonds of corporates which detract from these goals or have a negative SDG rating.

United Nations Sustainable Development Goals

Mapping the opportunity set to the credit cycle
Mapping the opportunity set to the credit cycle

Source: United Nations

of companies that have raised funds to finance environmental and climate-related projects

A green bond is a fixed-income instrument that is specifically earmarked to raise money for climate-related or environmental projects. Green bonds can finance projects for:

  • energy efficiency
  • pollution prevention
  • sustainable agriculture
  • fishery and forestry
  • the protection of aquatic and terrestrial ecosystems
  • clean transportation
  • clean water
  • sustainable water management
  • advancement of environmentally friendly technologies
  • other projects to mitigate climate change.

Green bonds are typically asset-linked and backed by the issuing entity’s balance sheet. They therefore usually carry the same credit rating as their issuers’ other debt obligations.

UOB offers you a curated list of high-quality green bonds, with different tenors to suit your preferred time horizon.

The green bonds we offer are selected from the Bloomberg Barclays MSCI Global Green Bond Index, which has been voted the best index for the fourth year running by Environmental Finance, a leading news and analysis service dedicated to sustainable investing and green financing.

Constituents of the index are rigorously assessed on the ongoing environmental impact of the green projects the bond proceeds are used for, among other factors.

Since its inception in 2014, the Bloomberg Barclays MSCI Global Green Bond Index has also outperformed the broader bond market in terms of its total returns.

This includes screening for probability of default, fair value assessment, and technical analysis.

This additional layer of screening ensures that we only offer you the highest-quality green bonds that provide stable cash flow outcomes and potential returns that commensurate with the risk you take.

linked to underlying assets that have embedded ESG considerations as part of their business models and processes.

A structured note is a flexible investment solution, where the payoff is linked to the performance of a chosen basket of underlying assets.

Structured notes are fully customisable and can be tailored to your specific values, interests, market views and risk appetite.

UOB is a leader in structured notes, with strong industry recognition for our advisory approach, distribution coverage, partner management, solutions and capabilities.

Structured Retail Products Asia Pacific Awards

SRP Award

Best Distributor, Singapore (2020, 2018, 2017)
Best Distributor, South and Southeast Asia (2020, 2018)
Best Performance, Singapore (2018, 2017)

We offer structured notes linked to the equities of companies with strong ESG ratings.

These sustainable companies are evaluated, screened and ranked by our partner Societe Generale’s responsible investments research team, a recognised leader in the field that issues quantitative ESG rankings to over 4,000 stocks worldwide. This evaluation also harnesses raw data tracked by Sustainalytics, the world’s largest independent provider of ESG research.

Of all the sustainable investment offerings we carry, our structured notes have the greatest scope for customisation.

You have full control over what kind of companies to link your payoff to. You could choose companies grouped according to ESG themes you find compelling, such as those involved in clean energy or global healthcare. Or you could choose to link your structured note to certain green companies, for instance, those involved in advancing clean energy, clean water or resource conservation.

Choose the time horizon for these linked assets, ranging from a month to 24 months.

Your structured note can also be specially designed to suit your individual risk appetite and investment objectives. You can choose from structured notes falling into any of the broad categories depicted below, each with differing potential risks and returns.

Risk Profile

Contact us today to explore which options best suit you and your portfolio.

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