The fund will invest in high-quality green, social, and sustainability-linked bonds with strong ESG mandates, the firm said. Most of the asset allocation will go towards backing local initiatives following the Singapore government’s budget proposals to finance up to S$19 billion in public sector infrastructure projects through green bond issuances.
 
 “It is the first ESG fund that enables investors to participate in the shaping of a sustainable Singapore for future generations,” group CEO at UOBAM, Thio Boon Kiat, said.
 
The initial minimum subscription to the fund is S$1,000 , targeting investors seeking income and capital appreciation over the medium to long term, UOB said.