Protect your loved ones’ future from life’s uncertainties
Investors around the world are increasingly interested in environmental, social and governance (ESG) issues. As the global drive towards a more sustainable future continues, we are witnessing positive growth in sectors that are crucial to the transition such as renewable energy, energy efficiency and electric vehicles.
AIA has jointly created the AIA Sustainable Multi-Thematic Fund with Robeco, an asset manager globally recognised for its leading expertise in Sustainable Investing and Thematic Investing, to cater to the needs of investors who wish to align their investments more closely with their values while also enjoying potential returns.
AIA is the first to bring a bespoke sustainable thematic fund from Robeco to the ILP market. AIA Sustainable Multi-Thematic Fund is crafted with the following three key propositions:
The AIA Sustainable Multi-Thematic Fund invests in companies that contribute to one or more of the following six sustainable themes.
The fund seeks capital appreciation by investing in a range of Robeco investment strategies that aim to capture structural growth opportunities in a transitioning world.
Click on each of the sustainable themes below to find out more.
Protecting the quality and quantity of world’s water supplies
Making manufacturing cleaner, greener and leaner
Promoting prevention, early intervention and population health
Enabling a future of clean, safe and efficient transport
Powering the energy transition to a low carbon future
Saving virgin resources via virtuous loops of recycled waste and shared assets
benefit from long-term growth as their solutions see greater demand, from a world transitioning to a more sustainable future
contribute to positive environmental and social impact; and
exhibit strong competitive positions, with reasonable valuations.
1 The underlying funds may include, without being limited to, the above sub-funds, bearing in mind that the Sub-Investment Manager will be able to invest in other sub-funds from the Robeco Capital Growth Funds platform as long as they fulfil the applicable criteria.
2 Source: Robeco.
3 Use of the United Nations Sustainable Development Goals (SDG) logos, including the colour wheel, and icons shall only serve explanatory and illustrative purposes and use of the United Nations Sustainable Development Goals (SDG) logos, including the colour wheel, and icons shall only serve explanatory and illustrative purposes and may not be interpreted as an endorsement by the United Nations of this entity, or the product(s) or service(s) mentioned in this document. The opinions or interpretations shown in this document hence do not reflect the opinion or interpretations of the United Nations and may not be interpreted as an endorsement by the United Nations of this entity, or the product(s) or service(s) mentioned in this document. The opinions or interpretations shown in this document hence do not reflect the opinions or interpretations of the United Nations.
Robeco is an international asset manager that has been at the forefront of sustainable investing, starting with the launch of its first sustainable investing product in 1995. AIA Sustainable Multi-Thematic Fund is sub-managed by Robeco to leverage Robeco’s 25+ years expertise in sustainable investing.
Watch the video below to find out more about Robeco.
Best ESG Manager in Asia
Best of the Best Awards 2021 & 2022, Asia Asset Management
Best Impact Investing Manager
Best of the Best Awards 2022, Asia Asset Management
1st out of 75 managers
First position: survey on Responsible Investment Performance1, March 2020
A+ for all modules by the PRI2
Member of Climate Leaders group 2020
No. 1 sustainability brand3
Broadridge's annual brand survey Fund Brand 50
1 Share Action, 2020, https://api.shareaction.org/resources/reports/Point-of-no-Returns.pdf.
2 PRI 2020 Assessment report, available on Robeco.com.
3 Broadridge Market Analysis, 2021. Brand survey on independent asset managers amongst > 850 European fund selectors. Broadridge Distribution Achievement Award – ESG/ SRI – 2018, 2019, 2020, 2021.
In 2021, AIA Singapore pledged S$5 million to the National Parks Board’s (NParks) registered charity and Institution of Public Character (IPC), the Garden City Fund, with the goal of planting 16,666 trees in Singapore’s parks and nature areas over five years. This is the largest contribution by an organisation to the OneMillionTrees movement and Garden City Fund’s Plant-A-Tree programme, to date.
As part of AIA Singapore’s Green Pledge to help create more urban green spaces across the city, the company will plant a tree* for each customer who purchases from a select range of AIA investment-linked products (AIA Pro Achiever 2.0 S$, AIA Pro Lifetime Protector II and AIA Invest Easy S$ - Cash & SRS) from 24 November 2022 to 31 December 2023 and invests in the AIA Sustainable Multi-Thematic Fund for a period of at least six months.
* The number of trees for this campaign is capped at 4,000 trees during the period of 24 November 2022 to 31 December 2023.
Click on each of the myths below to learn about sustainable investing (SI).
Adopting sustainability requires investment and hence many perceive that companies who take sustainability seriously usually underperform. However, the reverse is true: the use of environmental, social and governance (ESG) principles by companies and investors is shown to enhance performance. This is primarily due to the ability to reduce risks as standards are raised in all three domains to combat climate change or bad corporate behaviour.
A growing body of evidence concludes that companies which are progressively more sustainable today will reap the rewards in the future – and it may even save their businesses. Oil companies, for example, are slowly changing their business models to replace fossil fuels with renewables, while car makers are switching to electric vehicles, and retailers are sourcing only from suppliers with verified human right records. Should carbon limits ever be introduced, those companies that are cutting their carbon footprints now will be better placed to deal with new regulatory or governmental regimes in the future.
Adopting SI leads to better-informed investment decisions and leads to better returns in the long term.
SI has come a long way in recent decades – though some people still think it’s only about green issues. Others believe it’s only relevant to a handful of idealists, led by pressure groups. Both myths persist because one of the origins of modern sustainability was indeed the ‘save the world’ campaigns of the 1960s. Organizations such as Friends of the Earth, founded in 1969, lobbied hard to stop some of the plainly unsustainable practices of that era, from deforestation to pollution.
However, today, the interpretation of sustainability has greatly widened, particularly in the scale by which it has been adopted as a mainstream practice by governments, corporations and investors. It now involves people from all walks of life – not just campaigners – and accounts for trillions of dollars’ worth of investment. This can be seen in the United Nation’s list of 17 Sustainable Development Goals (SDGs) which target wider issues that make life better for everyone by inviting all corporates and financial institutions to contribute towards achieving the goals within 15 years.
While the ‘E’ in ESG does indeed incorporate the green issues that investors still focus on – and now treat as a business opportunity in areas such as renewable energy – much more emphasis is now on the ‘S’ and ‘G’ than has been in the past. Social factors include trying to eradicate labour problems in supply chains, from modern-day slavery at one extreme to simply ensuring that workers are happy and therefore more productive. Better governance includes trying to encourage female participation at all levels in the workplace and having more independent directors on boards.
A persistent myth about SI is that it only includes negative screening – mainly by excluding stocks that are deemed ‘unethical’ from a fund or portfolio. However, negative screening is only one side of the coin. Investing sustainably is also reliant on positive screening, as what is put into a fund is ultimately more important than what is left out.
Many methods can be used to find the best stocks depending on the goal an investor has. Using ESG data gathered from different sources to analyse and value a company, also known as ESG integration, is often done with the aim of improving returns or reducing risks. Using both positive and negative sustainability screening techniques, along with other factors that may have a bearing on whether to buy or sell such as the principles of value investing, ESG integration enables a fully informed investment decision to be made.
Furthermore, exclusions should also be seen as a last resort. Most investors prefer to firstly engage with companies to try to find ways in which their corporate behaviour can be improved. Impact investing and active ownership often has a goal of making a difference while also creating financial return. This method is preferred because once a company is excluded, it is not possible to engage with it, and investors cannot use their influence to seek ESG enhancements.
Although Millennials show the biggest interest in SI, the interest in sustainability is spread across different generations and its roots go back centuries.
According to a 2017 questionnaire by Robeco into the taste of its Dutch retail investors, approximately 70% of people aged over 50, 66% of 34 to 50-year-olds and 67% of 18 to 34-year-olds stated clear interest in sustainability. Furthermore, 28% of the over-50s, 29% of the 34 to 50-year-olds and 26% of the 18 to 34-year-olds also invest in sustainable funds, further supporting the notion that the interest in SI is evenly spread across age brackets.
The origins of sustainability go back to the 18th century church when Quakers launched the first exclusions by refusing to invest in anything involved with the slave trade. This was then followed by several other milestones which help to propel the importance of sustainability such as the first equal rights legislation in the 1960s and the environmental campaigns of the 1970s. Subsequently, in 1995, the famous concept of “triple bottom line” was coined by a British businessman, John Elkington. This concept advocates for enterprise to consider the three Ps of ‘People, Planet, Profit’ as each of them is equally important for the long-term success of society. This concept was then adapted to become the ESG principles which now forms the bedrock of most SI processes. Therefore, SI is certainly not a modern-day Millennials hype, it has centuries of track record and is clearly at an inflection point now despite its fairly niche concept in the past.
SI is believed by many to be restricted to a handful of money managers and has no clear impact on the wider society as SI focuses only on financially material issues and not just ethical concerns. This view is partly due to the fact that SI is usually conducted by people with a vested interest such as asset management companies who own the equities or bonds of other companies. However, it is important to note that company improvements can be gained through active ownership by voting and engagement. Shareholders, including minority shareholders, who are unhappy with a company’s policies can vote against them at annual general meetings or block resolutions that do not meet their requirements. Engagement is another powerful tool where the investor meets with the company to seek improvements in one ESG field or another.
An improvement that follows engagement, voting or just happens naturally leads to better-behaved companies. A company with an exemplary ESG conduct may lead to cleaner air and reduced waste, higher wages for workers and better relations with local community, more opportunities for women and ethnic minorities as well as stronger prevention of racial and other discriminations. In short, society as a whole benefits from companies with exemplary ESG conduct.
Kick-start your investment journey with 100% of your premiums invested from day one. Enjoy a boost on your initial capital with attractive welcome bonus(es) of up to 75%, and power up your future investments with a special bonus as long as you continue paying regular premiums. Start your investment journey on a higher level with AIA Pro Achiever 3.0 today.
Investing smart means leaving the heavy lifting to the professionals you can trust. Count on AIA Invest Easy to make the whole process simple, flexible and hassle-free. Our experienced fund managers can help you grow and maximise your investments through a variety of funds and portfolios that suit you best.
AIA Pro Achiever 3.0, AIA Pro Lifetime Protector (II) and AIA Invest Easy (Cash/SRS) are Investment-Linked Plans (ILPs) offered by AIA Singapore Private Limited (Reg. No. 201106386R) (“AIA”), which invests in ILP sub-fund(s). Investments are subject to investment risks including the possible loss of the principal amount invested. Past performance of the ILP Funds is not necessarily indicative of its future performance. The performance of the ILP funds are not guaranteed and the value of the units in the ILP funds and the income accruing to the units, if any, may fall or rise. You should seek advice from an AIA Financial Services Consultant or Insurance Representative and read the product summary and product highlights sheet(s) before deciding whether the product is suitable for you.
Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore.
The information in this advertisement is correct as at 13 January 2023.
This publication is for your information only and does not have regard to the specific investment objectives, financial situation and particular needs of any persons. It is intended only to be a simplified description of the product features applicable to these plans and is not exhaustive It is not a contract of insurance and is not intended as an offer or recommendation to purchase the plan. You can find the full terms and conditions, details, and exclusions for the mentioned insurance product(s) in the policy contract.
Although the information was compiled from sources believed to be reliable, AIA does not guarantee its accuracy, completeness, correctness or timeliness for any particular purpose and the information and opinions contained may change without notice. The opinions may be formulated based on a number of assumptions, which may turn out to be invalid, and in reliance on the views of research teams within the group situated outside of Singapore. All third party data are copyrighted by and proprietary to the provider. AIA and its associates, their directors, officers and/or employees may have positions or other interests in, and may effect transactions in the securities, instruments, currencies and other assets mentioned herein for themselves or their clients. Past performance figures, and any economic and market trends or forecast, are not necessarily indicative of future performance of any strategy or portfolio. Investment is subject to investment risk, including the possible loss of the principal amount invested. This material may only be used and/or received in accordance with the applicable laws in your jurisdiction.
The information in this material is provided by Robeco unless specified and presented by AIA Singapore Private Limited.