Making investing in a world you want to live in accessible
Nikko Asset Management announces the launch of the Nikko AM Impact Investing Multi Asset Fund (the "Fund"). The Fund offers retail investors the compelling opportunity to invest in the world they want to live in. It aims to deliver long-term total returns while generating positive social and/or environmental changes in the world. Feeding into two underlying funds ("Wellington Global Impact Fund" and "Wellington Global Impact Bond Fund") with a dynamic asset allocation subject to a maximum of 60% into each, the Fund will invest directly or indirectly in global equities and investment grade rated global fixed income securities.
Impact investing focuses on the social and/or environmental impact that can result from what a company produces and sells. Central to this is the ability to measure a company's social or environmental impact. The Nikko AM Impact Investing Multi Asset Fund invests only in companies with a measurable positive effect on society or the environment through its core products and services.
Eleanor Seet, Head of Asia ex-Japan, Nikko Asset Management, said, "We believe the interest of retail investors in impact investing is underserved in the region. With this fund, retail investors in Singapore will have the chance to align their investments with enterprises that we see making a real difference in the world. The focus on three broad impact areas life essentials, human empowerment, and the environment and their sub-themes is aligned with the UN's Sustainable Development Goals. Creating accessibility to impact investing is in line with our own sustainability goals as a firm and it also speaks to our strength as a progressive solutions provider.
"We are very pleased to have Tsao Family Office, a strong advocate of impact investing, partner us as a cornerstone investor, and iFAST and FSMOne as the exclusive distributor of this fund."
The initial offer period (IOP) of the Nikko AM Impact Investing Multi Asset Fund is from 9 September 2021 to 10 October 2021, during which each unit of the Fund is priced at a dollar. Exclusively available through iFAST Financial Pte Ltd and FSMOne, the Fund's base currency is in USD but it also has an SGD hedged class.
Bryan Goh, CEO of Tsao Family Office, shared, "Sustainable and responsible investing are not only good for society and the environment, they also make for better commercial decisions and better financial results."
Jean Paul Wong, General Manager of FSMOne.com added, "Sustainable investing has been receiving more attention in recent years, and it is now an important megatrend that investors should pay attention to. We are pleased to be the exclusive distributor for the Nikko AM Impact Investing Multi Asset Fund, which enables investors to create positive impact with their investments."
The underlying funds managed by Wellington Management Company LLP have the ability to measure a company's social or environmental impact. Once it is determined that a company meets the criteria for impact, a set of key portfolio indicators (KPIs) to track that company's progress towards the impact goals is developed. Adapted from academic research, the KPI logic chain allows the manager to form a structured view, measuring impact for each company during different stages of its business life cycle, and tracking progress over time.
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