Schroders partners HSBC exclusively to launch sustainable food and water fund to Singapore investors
Fund will allow investors to tap into opportunities from a more sustainable food and water system
Schroders Singapore today announced the launch of the Schroder ISF Global Sustainable Food and Water fund, a global equity portfolio which invests in companies worldwide that are driving the transition towards the sustainable provision of food and water. HSBC Singapore is the exclusive distribution partner for the fund.
The fund will have a high-conviction, unconstrained approach and allocate between 35-60 stocks across key value chains such as water management, agricultural equipment, agricultural inputs, food production and processing, packaging distribution and recycling, and food retail. The fund is part of Schroders’ Global Transformation Range, a suite of funds giving investors long-term exposure to the most powerful and persistent themes shaping the world’s future. The strategy will focus on finding long-term, sustainable earnings and cash flow growth at a reasonable value.
Lily Choh, CEO of Schroders Singapore, said:
“We are pleased to partner exclusively with HSBC Singapore to launch the Schroder ISF Global Sustainable Food and Water fund, the second sustainability-focused strategy following the Schroder ISF Sustainable Multi-Asset Income fund launch in 2020.
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 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, HSBC, shared:
“Recent global climate events have further exacerbated the threat of water and food security. The cost of inaction is enormous and 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 ESG-themed investment ideas to our clients from across the wealth continuum.HSBC remains committed to work with like-minded partners such as Schroders to bring more best-in-class investment solutions that will help our clients build a sustainable future which benefit both the economy and society.”
HSBC retail banking clients in Singapore can invest in Schroder ISF Global Sustainable Food and Water fund with a minimum investment amount of USD1000. The fund’s base currency is USD, but SGD, EUR and GBP hedged classes are also available to investors. As a result of its sustainability objectives and key investment areas, the fund is classified under Article 9* of the EU Sustainable Finance Disclosure Regulation.
The Schroder ISF Sustainable Food and Water fund is now open for subscription. Clients may contact their HSBC relationship manager / any HSBC branch or visit the Schroders website to find out more.
*The strategy has a sustainable investment objective within the meaning of Article 9 of Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Services Sector (the “SFDR”). The strategy contains indicative terms for discussion purposes only. It will be subject to the investment guidelines agreed with the investment manager and documented in the final investment management/advisory agreement. It is not intended to provide the sole basis for evaluating the investment solutions described.
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For further information, please contact:
Hilary Espinosa
Hume Brophy (Singapore)
Tel: +65 8814 4903
Email: hilary.espinosa@humebrophy.com
Clarence Chen
Schroder Investment Management (Singapore) Ltd
Tel: +65 6800 7397
Email: clarence.chen@schroders.com
About Schroders Plc
Founded in 1804, Schroders is one of Europe’s largest independent investment management firms by assets under management. As at 30 June 2022, assets under management were £773.4 billion (€898.4 billion; $939.2 billion). The founding family remain a core shareholder, holding approximately 48% of the firm’s voting shares. Schroders has continued to deliver strong financial results. It has a market capitalisation of circa £7.7 billion and employs over 5,800 people across 38 locations.
Schroders has benefited from the most diverse business model of any UK asset manager by geography, by asset class and by client type. Schroders offers innovative products and solutions across their five business areas of solutions; institutional; mutual funds; private assets & alternatives; and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, endowments and foundations. They also manage assets for end clients as part of their relationships with distributors, financial advisers and online platforms. Schroders’ Wealth Management offering reflects their strategic ambition to provide wealth management and financial planning services to clients across the wealth spectrum.
Schroders’ strategic aims are to grow their asset management business, build closer relationships with end clients and expand their private assets and alternatives business. Schroders’ purpose is to provide excellent investment performance to clients through active management. The business channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we deliver for Shareholders and other stakeholders.
Further information about Schroders can be found at www.schroders.com.
About The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 63 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,985bn at 30 June 2022, HSBC is one of the largest banking and financial services organisations in the world.