Singapore-based digital wealth advisor Endowus has launched its Environmental, Social, and Governance (ESG) portfolios, to pave the way for retail investors to gain access to better sustainable investing options.

Fund managers include J.P. Morgan Asset Management, Natixis-Mirova, PIMCO, Schroders and UOB Asset Management-Robeco.

Endowus’ ESG offering comes on the back of Singapore’s launch of a concerted national drive towards a more sustainable future.

This move is illustrated by the Monetary Authority of Singapore (MAS)’s commitment in 2019 to invest US$2 billion to establish Singapore as a global hub for sustainability and green finance.

This was followed by the nation’s October 2020 launch of the Singapore Green Finance Centre, a public-private partnership led by the MAS to develop a sustainable investing ecosystem in Asia, contributing towards the its sustainability blueprint, Singapore Green Plan 2030.

The results of an Endowus survey of over 1,100 participants in Singapore have highlighted the fact that the nation’s drive towards sustainable investing is aligned with investor sentiment as there is strong and growing demand for more ESG investing options in Singapore.

Yet while results indicate that ESG investing resonates with over 93 percent of respondents, only 28 percent currently hold any ESG funds.

Probing deeper, the responses clearly illustrate some common themes behind investors’ hesitation to fully embrace ESG funds; 58 percent of respondents acknowledge a lack in their own understanding or knowledge of ESG investing, while 43 percent pointed to a lack of good available options as a key hindrance.

“We are proud to be Asia’s first digital wealth advisor to launch multi-asset ESG offerings, empowering individual investors to secure a better financial future for themselves while also making a positive impact on society and the planet.

 

We have implemented a robust due diligence process on the selection of funds and fund managers, so investors are provided with only the best ESG products. The resulting new ESG portfolios are a great example of the close partnership it takes, with top global fund managers, to bring an industry-leading offering to market.”

said Samuel Rhee, Chief Investment Officer of Endowus.