Invest in a better, sustainable future with Endowus.

ESG investing is a strategy and practice to incorporate environmental, social and governance factors in investment decisions and active ownership. Examples of ESG issues include climate change, gender and diversity, human rights. Read more here.

ESG investing, sustainable investing and impact investing are some of the many terms used to describe investment approaches that consider environmental, social and governance issues. These are often used interchangeably.

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A key to understanding how ESG investing sits within the investing spectrum is that while some (e.g. ethical investing) make moral or ethical goals a primary purpose, and some (e.g. impact investing) make impact generation a primary purpose, ESG investing can and should also be pursued by the investor whose sole focus is financial performance.

ESG/SRI ETFs are typically passive index funds that track a certain market index. They usually employ a simplistic negative screening ESG process, which excludes companies with the lowest ESG ratings. These ESG ratings are usually provided by a third party data provider such as MSCI and Sustainalytics, and some challenges of relying an ESG fund on such ratings are that they are highly dependent on company disclosures, and that there is a high degree of dispersion amongst ratings by different data providers based on the rating methodology that each uses.

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Most actively-managed ESG funds are offered to investors in a unit trust rather than ETF, and we believe there are certain benefits of an active approach to ESG investing. It is hard to quantify all the ESG aspects of an investment, therefore a more active approach to assessing companies would provide a more holistic perspective on companies’ ESG profile. Active managers can also be more involved in ESG engagement to push companies to improve on their ESG performance. The more holistic incorporation of ESG information and the ability to create change on the ESG side would hopefully lead to ESG alpha in the long term.

Invest in ESG Portfolios that are designed by our Investment Office (available for Cash, SRS):

ESG Portfolios are available via desktop or web app and will be available on the mobile app in the coming days.

1) Log in to your Endowus account here
2) Go to "Invest | Redeem | Transfer" and select “Invest”
3) "Add new goal" and select "General Investing"
4) Select Environmental, Social and Governance (ESG) as an investment type.  

Customise your own ESG Portfolios (available for Cash, SRS, CPF)
1) Log in to your Endowus account here
2) Go to "Invest | Redeem | Transfer" and select “Invest”
3) "Add new goal" and select "Fund Smart"
4) Select Funding Source (Cash, SRS, CPF OA) and ESG funds.

Equity ESG funds

Mirova Global Sustainable Equity Fund (Available for Cash/SRS)

The Fund seeks to outperform the MSCI World Net Dividends Reinvested Index through investments in companies whose businesses include activities related to sustainable investment themes over the recommended minimum investment period of 5 years.

Links to Fund Rationale, Prospectus, PHS

Mirova is an affiliate of Natixis Investment Managers.

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Schroder ISF Global Sustainable Growth Equity Fund (Available for Cash/SRS/CPF)

The Fund aims to provide capital growth by investing in equity and equity related securities of companies worldwide which demonstrate positive sustainability characteristics, such as managing the business for the long-term, recognising its responsibilities to its customers, employees and suppliers, and respecting the environment.

Links to Fund Rationale, Prospectus, PHS

Schroder ISF Global Climate Change Fund (Available for Cash/SRS)

The Fund aims to provide capital growth by investing in equity and equity-related securities of companies worldwide which the investment manager believes will benefit from efforts to accommodate or limit the impact of global climate change.

Links to Fund Rationale, Prospectus, PHS

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Fixed Income ESG Funds

JPM Global Bond Opportunities Sustainable Fund (Available for Cash/SRS)

The Fund aims to achieve a return in excess of the benchmark by investing opportunistically in debt securities positively positioned towards debt securities issued by companies and countries that demonstrate effective governance and superior management of environmental and social issues (sustainable characteristics).

Links to Fund Rationale, Prospectus, PHS

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PIMCO GIS Climate Bond Fund (Available for Cash/SRS)
The Fund aims to maximise total returns while fostering the transition to a net-zero carbon economy by investing in a diversified portfolio of bonds, including green bonds, issued by companies demonstrating climate change leadership across the value chain.
Links to Fund Rationale, Prospectus, PHS

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UOB United Sustainable Credit Income Fund (Available for Cash/SRS)

The Fund aims to provide capital growth by investing in a multi-sector portfolio of fixed income instruments issued by companies worldwide that contribute positively to the UN Sustainable Development Goals (“UN SDGs”).

Links to Fund Rationale, Prospectus, PHS

Endowus charges an Endowus Fee based on assets under advice (AUA), which includes investment advice, portfolio creation and rebalancing, brokerage, and transfers.

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‍Endowus has no sales fees, and gives 100% Cashback on trailer fee to our clients.
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General Investing - Access Fee per annum based on assets under advice (AUA):
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SRS
0.40%   On any amount
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Cash
0.60%   S$200,000 and below
0.50%   S$200,001 to S$1,000,000
0.35%   S$1,000,001 to S$5,000,000
0.25%   S$5,000,001 and above

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Access Fees are charged on a quarterly basis based on your daily average total assets under advice (AUA) for the period of the fee, depending on your portfolio type (SRS, Cash).

Note that Fund-Level Fees (Fund’s Total Expense Ratio) are charged by the fund manager out of the underlying fund Net Asset Value (NAV).