Insurance giant Friends Provident International (FPI) has rolled out an environmental, social and governance (ESG) fund range for savers who want to invest in a more responsible way.
To help advisers and clients evaluate how investment funds are meeting ESG challenges, FPI’s range features the Morningstar Sustainability Rating, which will help quantify the management of ESG risks.
Funds that exhibit low overall carbon risk and have lower-than-average exposure to companies with fossil-fuel involvement will also feature a low carbon icon.
It will be available in Singapore and all other regions the firm offers products, excluding Hong Kong. The Singapore range is the only one with any products open for new business at this stage.
The responsible investing sector features a range of thematic equity funds whose portfolios invest in companies that contribute to positive societal change.
The funds fall into one of six themes:
· Climate change;
· Resources and energy;
· Human development;
· Multi-thematic; and,
· Water and waste.
Chris Corkish, FPI investment marketing manager, said: “We know investors are looking more than ever for funds that invest in a responsible manner. As a result, more fund managers are integrating the assessment of ESG criteria into their asset allocation processes.
“Evidence shows that funds which integrate ESG are not only becoming more popular but also more successful. This means investors no longer have to sacrifice performance in order to invest in funds that are doing the right thing.
“They can invest with both their head and their heart.”