Schroders launches sustainable food and water fund to Singapore investors with HSBC Singapore as exclusive partner

The fund will have a high-conviction, unconstrained approach and allocate between 35 to 60 stocks across value chains.

Schroders Singapore, on Sept 20, launched the Schroder ISF Global Sustainable Food and Water fund. HSBC Singapore is the exclusive distribution partner for the fund.

This is the second sustainability-focused strategy following the Schroder ISF Sustainable Multi-Asset Income fund launch in 2020.

The fund, which is part of Schroders’ Global Transformation Range, is a global equity portfolio which invests in global companies that aim towards providing food and water sustainably.

The fund will have a high-conviction, unconstrained approach and allocate between 35 to 60 stocks across value chains such as water management, agricultural equipment, agricultural inputs, food production and processing, packaging distribution and recycling, and food retail.

According to Schroders, the fund’s strategy will focus on finding long-term, sustainable earnings and cash flow growth at a reasonable value.

“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,” warns Lily Choh, CEO of Schroders Singapore.

“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,” she adds.

Jeffrey Yap, head of investments and wealth solutions, Southeast Asia, private banking & wealth at HSBC said that the cost of inaction on the recent global climate events is “enormous”.

“As a bank, we are in the position to unlock sustainable investment opportunities and help investors influence change,” he says. “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.”

HSBC retail banking clients in Singapore can invest in the Schroder ISF Global Sustainable Food and Water fund with a minimum investment amount of US$1000. The fund’s base currency is in USD, but SGD, EUR and GBP hedged classes are also available to investors.

The fund is classified under Article 9 of the European Union (EU) Sustainable Finance Disclosure Regulation.

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