environmental, social and governance factors are important for investors in the Asian city-state when it comes to considering their portfolios, a survey finds.
A survey of 400 investors in Singapore – part of a global study of 8,300 such persons around the world – shows that more than eight in 10 Singapore-based investors say they are more likely to view environmental, social and governance factors as important when considering how their money is managed.
Natixis Global Asset Management, in its study, found that 84 per cent of Singaporean investors give weight to ESG issues.
The study also showed that (79 per cent of Singapore-based investors, versus 78 per cent of the global sample, think investing in companies that reflect their personal values is important to their investment decision-making, but only 39 per cent say index funds contain these types of companies, suggesting that the growing demand for ESG investing among Singapore investors may not be compatible with passive index investing.
Among other findings, some 81 per cent of Singapore investors (versus 70 per cent globally) are also more willing to invest in alternative assets, although only 40 per cent actually do so. Singapore investors say they need returns of 9.4 per cent above inflation to meet their goals at a time when many experts expect low single-digit returns from many market indices
“The findings suggest that while returns still matter to investors, social justice has also risen to become an influential aspect of modern consciousness,” Madeline Ho, executive managing director, head of wholesale fund distribution, Asia Pacific at Natixis Global Asset Management, said.