Against a backdrop of global economic uncertainty and a cooling of interest in sustainable investments, one fund has quietly defied expectations. Since its launch in 2021, it has not only weathered the storm but flourished, delivering impressive returns while others faltered.
The fund has achieved a remarkable 23.1% return since its inception, a stark contrast to the 8.6% decline experienced by the Philippine Stock Exchange index (PSEi) over the same period. Even during a challenging 2025, when the PSEi dropped 7.3%, the fund maintained a steady 3.0% gain, exceeding the benchmark by a significant 10.3%.
This success isn’t accidental. The fund, a pioneering sustainability-themed equity fund in the Philippines, operates on a unique principle: integrating the United Nations Sustainable Development Goals (SDGs) into every investment decision. It looks beyond traditional financial metrics, seeking companies actively building a better future.
The fund’s approach involves a deep dive into sustainability-related data, meticulously tracking metrics like greenhouse gas emissions and waste generation. This holistic evaluation allows for a more nuanced understanding of a company’s true value and resilience, proving particularly valuable during market turbulence.
Currently, the fund ranks among the top five unit investment trust funds (UITFs) in the Philippines and has gained recognition as a top performer on the GCash platform. This isn’t simply about identifying promising companies; it’s about actively shaping their behavior.
The fund’s managers don’t just invest – they engage. They provide constructive feedback to companies on their sustainability performance, highlighting areas for improvement and encouraging the adoption of more responsible practices. This proactive approach fosters positive change and strengthens long-term value.
The portfolio is currently weighted towards banks, property developers, and consumer food companies. The prominence of the banking sector is directly linked to new regulations from the central bank, compelling banks to integrate environmental and social risks into their operations.
Property developers are also gaining prominence within the fund, driven by a growing commitment to renewable energy and ambitious net-zero targets. Their increasing adoption of sustainable practices is directly influencing their contribution to the fund’s overall performance.
With approximately P498 billion in assets under management, the firm behind the fund is tapping into a growing demand from investors who seek to align their financial goals with their personal values. It’s a recognition that long-term profitability and sustainability are not mutually exclusive.
The fund represents a shift in thinking – a belief that investing can be a force for good. It’s about more than just maximizing profit; it’s about building a future where financial success and a healthy planet go hand in hand, attracting a new generation of investors who demand both.
