Climate Change Can Give You Returns

Cheow Xin Yi
cheowxinyi@mediacorp.com.sg
Aug 4 2007 (TODAY)

Climate change doesn't always have to be negative.

Investors could put their money in companies that "prosper as a result of
having a direct impact on efforts to mitigate or adapt to climate change",
said Shroders Singapore's Head of Retail Chin Szu Yi.

Through "Shroder ISF Global Climate Change Equity", its
climate-change-related retail fund that invests in companies benefiting
from efforts to cut carbon emissions, Ms Chin said, the firm hopes to
"pick out these winners".

Launched by the global asset management company on June 26, the fund -
described as the first such initiative to hit Singapore shores - currently
invests in over 70 companies in its portfolio.

United States companies make up 35 per cent of the portfolio, while the
rest comes from Europe, Japan and other emerging markets, with about five
to six per cent in Asia.

The fund's portfolio manager, Simon Webber, said Sinomem Technology and
Hyflux, Singaporean companies that deal with water management, are two
firms the fund could include in its portfolio because of the problem of
water shortage in Asia, particularly in China.

The current fund size stands at more than US$100 million ($152 million),
excluding the $100 million raised in Singapore so far. In addition to
Singapore, the fund has been offered to retail investors in South Korea
and Hong Kong.

Mr Webber said that there are plans to launch the fund in Japan, the
United Kingdom and Europe in the next three months, adding that the fund
will use the MSCI world index as its reference.

"We believe this is the biggest investment theme in the next 20 years or
more, and as a result, we expect to be able to outperform the broad world
market. We believe we can beat (the MSCI world index) consistently," he
said.

Following Schroder, Deutsche Bank Group launched a similar product, the
DWS Global Climate Change Fund, in July.

money on the weather

Fund: Shroder ISF Global Climate Change Equity

Launch Date: June 26 to Aug 8

Launch Price: $10

Minimum Initial Investment: $2000

Minimum Subsequent Investment: $2000

Sales Charge: Up to 5 per cent of gross investment

Annual Management Fee: 1.5 per cent

Administration Fee: 0.4 per cent yearly

Dealing Frequency: Daily

Subscription Mode: Cash