Southeast Asia stocks and a climate change strategy (Fund Digest July 2023)

Want to invest in high-quality companies in Southeast Asia, or participate meaningfully in the climate transition?

This month, we’re excited to introduce two new funds on Fund Smart — one managed by JP Morgan and another by GMO.

The JP Morgan ASEAN Equity Fund focuses on Southeast Asia stocks that are positioned to be long-term compounders. What’s more, this fund was recently included in the Central Provident Fund Investment Scheme (CPFIS). That means it is now available for investments with CPF savings, as well as cash and Supplementary Retirement Scheme (SRS) savings.

As for the GMO Climate Change Investment Fund, it offers ESG (environmental, social, and governance) investors exposure to companies at the forefront of the fight against global climate change — such as renewable energy players, energy-saving firms, and waste reduction companies. GMO believes such companies are positioned to benefit from efforts to mitigate and adapt to climate change.

ASEAN equities

JP Morgan ASEAN Equity Fund

ISIN: LU0532188223 (SGD, Cash/SRS, Acc), LU2471279419 (SGD, Cash/CPF-OA, Acc), LU0441851309 (USD, Cash/SRS, Acc), LU1839390173 (USD, Cash/SRS, Dist)

Singapore investors with an affinity for high-quality companies closer to home will find this fund interesting. Focusing on the ASEAN region, the fund is managed by a highly seasoned team of five dedicated analysts, including the lead portfolio manager with more than 20 years of experience. 

Given the investable universe, the JP Morgan ASEAN Equity Fund tends to prefer Singapore-based companies, with additional allocations to other key Southeast Asian markets such as Thailand, Indonesia, Malaysia, and Philippines.

The fund has recently been approved under the CPFIS. Click here for details on the fund share-class that’s available for CPF investing.

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ESG equities — climate change

GMO Climate Change Investment Fund

ISIN: IE000N5QCMO9 (SGD), IE00BDT8RF97 (USD)

The fund invests in companies that are positioned to benefit from the climate transition, and has meaningful allocations in not just the themes of clean energy and energy efficiency, but also agriculture and water. 

The fund leverages on GMO’s tried-and-tested investment process of focusing on fundamentals and valuations, and offers a more differentiated basket of companies compared to other similar climate change funds that tend to be run on a less quantitative basis. For example, this fund has had lower allocations into US-based companies, and is more diversified on a geographical level.

Given the evolving nature of the climate transition theme, the GMO Climate Change Investment Fund also has a bias towards small and mid-cap companies, which may provide further diversification benefits to investors. 

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Funds for accredited investors (AIs) only

We have also added one new AI-only fund this month.

If you wish to invest in an accredited investor-only (AI-only) fund, please contact support@endowus.com. 

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Whether you’re looking to invest your cash, CPF, or SRS, there’s something for everyone at Endowus. Want to know more about the funds available on our Fund Smart platform? Refer to our investment funds list here for a quick overview in a single glance. 

We also recently gave the Fund Smart platform a massive upgrade — including wider currency options, new dividend payout options, and an improved experience for verified accredited investors. These give you more flexibility and information in selecting your own funds and building your own portfolios.

Customise your ideal investment portfolio in minutes with Fund Smart. The Endowus Fee for Single Fund Goals via Fund Smart (Cash, CPF, and SRS) is 0.3% p.a., reinforcing our commitment to reduce the cost of investing. This pricing means that more than 95% of the funds are now cheaper on Endowus than on any other fund platform, bank, private bank, financial advisor, or broker in Singapore. 

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