Our roles, not just as individuals but also as members of the global community, have been thrown into sharp relief during the Covid-19 crisis. More are becoming aware of the inextricable link between our choices and their effects on the environment, economy and society.
At the same time, the pandemic has shone a spotlight on the need to take care of our individual well-being and the importance of actively planning for future uncertainties.
Can we reconcile satisfying our individual needs with the desire to have a positive impact on the world? Thanks to Environmental, Social and Governance (ESG) investing, the answer is a resounding yes.
Supporting what’s good for the planet
When we invest, we are not just building our wealth for the future. We can also invest in – and support – firms whose products and services either leave a positive impact on the world, or help solve many of the pressing challenges we face today.
ESG metrics have been devised to evaluate firms’ impact on the world. Carbon emissions, energy usage and waste generation, to cite just a few examples, are frequently used as measures of environmental sustainability.
These metrics help investors and fund managers gauge the impact of firms when putting together portfolios.
ESG ratings offer another way to measure how a firm is performing in terms of its resilience to long-term ESG risks. One of the most well-known examples is the Morningstar Sustainability Rating, which assigns a score to about 20,000 mutual funds and Exchange-Traded Funds (ETFs) based on their success in tackling ESG issues.
As climate change wreaks havoc on the planet and awareness of exploitation of human capital rises, ESG themes can foreshadow the direction that firms must take in order to succeed in the future. Firms that improve their ESG evaluations enjoy a competitive advantage that can, in turn, help them perform better in our evolving world.
This is a win-win situation for investors, who can enjoy the potential for strong returns together with the satisfaction of knowing that their investments are making the world a better place.
One easy way to do so is through investment-linked insurance products that offer ESG investing opportunities, such as PRUVantage Assure.
Variety of opportunities
PRUVantage Assure can be an investment choice as it not only enables investors to protect their wealth in volatile times, but also presents a wide array of options to invest with the future in mind. It is the first ILP in Singapore with a mechanism that locks in coverage whenever a portfolio achieves a new daily peak, protecting policyholders from market downside risks in the event of death or accidental disability1 – thanks to its Wealth Assure feature.
The plan is primed to optimise wealth growth, with 100 per cent of premiums paid being invested from day one2. In addition, policyholders receive a welcome bonus of up to 30 per cent additional units in the first year (applicable to regular premium plans only), as well as a 0.8 per cent loyalty bonus every eight years3.
Policyholders can pick from a curated suite of PRULink funds that span a range of geographies and asset classes, and switch between them to capitalise on market growth.
Among them are two ESG funds that invest in companies that tackle thorny issues such as climate change and social issues.
The first, PRULink Global Climate Change Equity Fund, invests in businesses adapting to or mitigating climate change. Companies are selected from a diverse variety of sectors such as clean energy, agriculture and water treatment, efficiency and recycling.
Another option is the PRULink Global Impact ESG Equity Fund, which invests in companies focused on innovation in the areas of life essentials, human empowerment and environmental sustainability. Firms in the portfolio deal with issues such as affordable housing, alternative energy, financial inclusion and more.
Alternatively, if policyholders prefer a hassle-free investment experience with expert advice, they can consider PRULink ActiveInvest Portfolio Funds. It offers a choice of four risk-based portfolio funds, each containing a varying mix of actively managed funds from different asset classes by investment experts. Not only are policyholders offered a high degree of flexibility with a portfolio fund that is crafted based on their risk appetite with auto-rebalancing, but the portfolio fund is also continuously monitored to ensure investors stay on track.
With the range of investment opportunities offered, investors can protect and grow their wealth while playing our part to leave a better world for the future.
Footnotes:
1. Coverage for accidental disability ends on the policy anniversary before the Life Assured turns 70.
2. Premiums do not apply to top-ups and supplementary benefits.
3. Computed based on the Initial Investment Account value.
The information presented is issued by Prudential Assurance Company Singapore (Pte) Limited (Co. Reg. No. 199002477Z) (“Prudential”). As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. Investment products are subject to investment risks including the possible loss of the principal amount invested. The performance of the ILP sub-fund(s) is not guaranteed and the value of the units and the income accruing to the units (if any) may fall or rise. A product summary and product highlights sheet(s) relating to the ILP and ILP sub-fund(s) are available and may be obtained from Prudential and Prudential Financial Consultant. You are recommended to read them before deciding whether to subscribe for units in the ILP sub-fund(s) and seek professional advice before making any investment decision. If you choose not to seek advice, you should consider if the product is suitable for you. The information presented is for your information only and does not consider specific investment objectives, financial situation or needs of any person and does not constitute to investment advice. It should not be relied upon as financial advice to buy, sell or hold any investment product or class of investment products. It should not be construed as an offer or solicitation for the subscription, purchase or sale of the names mentioned herein. Terms and conditions apply. Information is correct as at 30/11/2021. Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore.
