Schroders has launched a fund in Singapore to invest in companies worldwide that are driving the transition towards the sustainable provision of food and water. HSBC is the exclusive distribution partner for the fund.
The Schroder ISF Global Sustainable Food and Water 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 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.
Currently, the global food and water system is unsustainable and faces intense pressure with the continued growth in the global population and the effects of climate change, says Schroders Singapore chief executive officer Lily Choh.
About US$30 trillion will have 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.
The Schroder ISF Global Sustainable Food and Water fund, which was first made available to HSBC’s private banking clients, is now available to the bank’s retail banking clients in Singapore. They can invest in the fund with a minimum investment amount of US$1,000. 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.