We can forge a future for generations as we help steer our customers’ wealth to responsible investments. Sustainable investing means investing in progress, as it directs funds towards companies that are working on innovative solutions to address issues of climate change and resource scarcity and to foster inclusive growth.
We believe that the integration of environmental, social and governance (ESG) considerations into our investment processes is important from a risk management perspective and to ensure long--term returns.
We offer professionally- ESG-focused unit trusts to our customers, enabling them to invest in companies that are committed to achieving financial and ESG performance. In the selection of ESG funds, we take into consideration:
- The fund manager’s expertise in managing ESG portfolios
- The incorporation of ESG factors in the fund’s investment process; and
- The ability of the fund manager to perform well against its benchmark and peers.
The green bonds we offer are selected from the Bloomberg Barclays MSCI Global Green Bond Index, which has been voted the best index for the fourth year running by Environmental Finance, a leading news and analysis service for sustainable investing and green financing. The index ensures proper screening and monitoring of the use of proceeds, as well as adherence to industry-standard Green Bond Principles. Constituents of the Index are rigorously assessed, among other factors, on the ongoing environmental impact of the projects for which the green bond proceeds are used.
We screen green bonds using our internal risk assessment framework to assess their financial fundamentals. This includes assessing the probability of default, fair value and technical analysis indicators. The additional layer of screening ensures that we only offer our customers the highest-quality green bonds for the best risk-adjusted rewards and stable cash flow outcomes.
We offer structured notes linked to the equities of companies with strong ESG ratings. Our structured notes offerings, paired with our ESG framework and equity selection approach, provide our customers with the unique proposition of gaining exposure to a basket of highly-rated ESG companies.
This may be in the form of themes that impact the global economy and are often environmental or social in nature. It may also include green investing, which focuses on companies that aim to help protect the environment for example, by supporting clean energy and resource conservation projects.