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What's New In Investments, Funds? – Schroders Singapore, HSBC

Editorial Staff

5 May 2024

Schroders Singapore, HSBC
This week to launch the Schroder ISF Global Sustainable Food and Water fund. The fund 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 for Singapore investors, the firm said in a statement.

The fund will enable investors to tap into opportunities for a more sustainable food and water system, Schroders added. The fund will allocate between 35 to 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.

It is part of Schroders’ Global Transformation Range, a suite of funds giving investors long-term exposure to key themes shaping the world’s future, the firm explained. The strategy will focus on finding long-term, sustainable earnings and cash flow growth at a reasonable value.

Highlighting the benefits of the fund, 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 $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,” she added.

“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,” she stressed.

“We believe these companies re-imagining the food and water supply chain will be in great demand and possess strong long-term growth potential,” Choh added. 

Jeffrey Yap, head of investments and wealth solutions, Southeast Asia, Private Banking & Wealth, HSBC, added: “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 retail banking clients in Singapore can invest in Schroder ISF Global Sustainable Food and Water fund, which is now open for subscription, with a minimum investment amount of $1,000.

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 firm said.

Founded in 1804, Schroders is a large investment management firm in Europe, with assets under management of $939.2 billion.