Wendy Lim, a 34-year-old investor, recently allocated S$10,000 to a US-listed exchange-traded fund focusing on clean energy and conservation. The potential for good returns, coupled with lower risks, motivated her investment, aligning with her retirement planning goals. Lim represents a growing demographic of retail investors seeking environmentally, socially, and governance (ESG)-aligned investments.
Rising Interest in Sustainable and Socially Responsible Investments
A UBS poll revealed that approximately 90% of Singaporean respondents aspire to align their investments with personal values, emphasizing social or sustainable causes. A study by UOB indicated that 90% of Singaporeans are eager to learn more about sustainable investing, with 13% already engaged in such investments. This trend is reflected in DBS’s observation of increased investments in sustainability-themed funds, with fund purchases nearly tripling from January to end-September. DBS plans to introduce additional sustainability-themed investment products in response to strong demand.
Growing Popularity of ESG and Clean Energy Investments
Robo-adviser Syfe noted that its “ESG and clean energy” thematic portfolio stands out as the most popular option, constituting 40% of thematic portfolios created to date. Sustainable investing has gained momentum globally over the past two years, driven by heightened awareness of climate change and sustainability issues.
The surge in interest among retail investors in Singapore reflects a broader global trend toward sustainable and socially responsible investing. As awareness of environmental and social issues grows, investors are increasingly seeking opportunities to make a positive impact with their investment portfolios. This shift is reshaping the financial industry, prompting institutions to offer a broader range of sustainability-themed investment products to meet the evolving demands of investors.
Source: channelnewsasia.com
