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Phillip Capital Management launches ESG-focused short duration bond fund

The Edge Singapore
The Edge Singapore • 2 min read
Phillip Capital Management launches ESG-focused short duration bond fund
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Phillip Capital Management, part of PhillipCapital, has launched its first ESG-focused fund, the Sustainable Reserve Fund.

The fund aims to help investor achieve income yields enhancement over the 6-month Singapore Overnight Rate Average (SORA), by focusing on fixed-income instruments from issuers who reinforce their commitment to sustainability and also contribute in specific ways to a green economy. 

"We see ourselves as stewards to one another, to our families, to our community, and to our environment," says Linus Lim, CEO of Phillip Capital Management, emphasising their commitment to make a positive impact on society and the environment by providing ESG-focused solutions to investors.

The fund’s manager will apply a ‘Sustainable Investing Approach’ supported by a proprietary ESG-integrated investment framework.

According to Phillip Capital Management, by doing so, the manager can accurately identify issuers that are well-positioned to succeed financially from their committed ESG-related actions.

The fund will substantially invest in global fixed-income instruments, including short-term interest-bearing debt instruments, bonds, money market instruments, and bank deposits. 

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These instruments may be issued by governments, government agencies, companies, and supranationals. 

The fund is designed as a short-duration bond fund which aims to pay dividends quarterly and employs a diversified investment approach, with no specific industry or sectoral emphasis. 

The fund seeks to invest at least 70% of its assets in fixed-income instruments from issuers meeting industry-specific ESG criteria through positive screening and active management. It may also invest in ESG-labelled bonds.

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While the benchmark for the Fund is the 6-month SORA, and its investments may significantly deviate from the benchmark. 

The fund managers intend to make regular quarterly distributions of up to 2.0% per annum for distribution classes. 

 

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