Singapore: AIA launches AIA Sustainable Multi-Thematic Fund

AIA Singapore has launched the AIA Sustainable Multi-Thematic Fund. “AIA is the first to bring a bespoke sustainable thematic fund from Robeco to the Singapore ILP market”, according to its media release.

It is the first sustainability fund AIA has launched in Singapore, and it will be available to customers through AIA’s ILP offerings.

The sustainability fund aims to outperform the MSCI World Index (Net Return) by pursuing investable themes that benefit from sustainability megatrends and which actively address social and environmental challenges, taking into account their real-world positive impact. The fund is focused on companies that contribute positively to one or more of the six themes, which include Sustainable Healthy Living, Smart Energy, Sustainable Water, Smart Materials, Smart Mobility and Circular Economy. The fund also seeks to manage market volatility through portfolio construction that optimises risk-adjusted return to provide stable long-term performances.

The bespoke multi-thematic fund consists of underlying strategies focused on sustainable outcomes.

Liu Chun Yen, Chief Investment Officer, AIA Singapore and member of the Sustainability in Insurance Committee (SIC) in Singapore, says, “The AIA Sustainable Multi-Thematic Fund is managed by Robeco, a leading Netherlands-based investment firm that has been at the forefront of sustainable investing. Robeco stands out for its commitment to driving real-world impact across key sustainable themes while delivering long-term financial returns.”

“In the past years, we have seen the growing number of investors adding impact goals to their financial objectives in their investment portfolios,” says Nayan Patel, CEO of Robeco Singapore. “Robeco is among the first asset managers to consider the real-world impact while capturing the investment opportunities from sustainable themes. In working with partners such as AIA, who are also committed to a more sustainable world, we will help to bring diversified impact investing to more ILP investors.”

Growing interest in sustainable investing

Sustainability is increasingly factored into investment-making decisions as more Singaporeans are beginning to understand the importance of environmental, social and governance (ESG) principles. In a recent survey conducted by the industry, it was found that 82 per cent of Gen Z and about 65 per cent of young millennial investors have ESG investments. More and more investors are seeking financial products and services that are aligned with their personal values.

In a 2022 Singapore survey by WealthLens™, it was revealed that nearly four in five of respondents (86 per cent) have sustainable investing and/or ESG funds in their investment portfolio. The survey also shared that close to half of respondents (47 per cent) are only interested in investing in companies with good ethical policies.

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