Responsible Investing (ESG)
About this portfolio
- Keeps risk constant while optimising for returns
- Expect long-term outperformance, and occasional deviation from how the markets are doing in order to keep your risk level constant
Number of underlying funds
Average expense ratio
- 0.2% p.a.
Impact you can measure
Long-term wealth, long-term impact
Companies with high ESG ratings are proving to generate strong long-term returns while also creating meaningful impact on society and the environment.
Check out other General Investing strategies
Frequently Asked Questions
How does StashAway calculate ESG scores?
StashAway uses two leading ESG scoring models to screen the portfolios’ underlying funds: the MSCI ESG rating, which consists of 7 rating categories; and the Morningstar Sustainability Rating, which consists of 5 rating categories. Based on an average of the two scoring models, the Responsible Investing portfolios have high ESG scores, ranging between 3.88 and 4.14 out of a score of 5.
Will my returns be affected for the Responsible Investing Portfolio?
Your returns are not compromised when you invest in our ESG-optimised Responsible Investing Portfolio. They are similar to our classic General Investing Portfolios, which optimise for returns, but do so using ESG aligned principles. This makes them ideal for building your core wealth, or for working towards long-term financial goals such as saving for retirement.
Global momentum has been huge for socially responsible investing recently, with assets estimated to reach US$53 trillion by 2025, a third of global AUM, according to Bloomberg. This is not only because investors have become more socially-conscious, but also because some companies with strong ESG ratings may do better in the long run by staying committed to the ‘triple bottom line’, which takes into account not just profit, but also people and the planet.
What is the difference between Responsible Investing and General Investing?
The Responsible Investing and General Investing portfolios are globally diversified and optimised for long-term returns. Both types of portfolios have been designed to be suitable for building your core wealth or for long-term financial goals such as saving for retirement.
Compared to the General Investing Portfolio, Responsible Investing is considered more socially or ethically responsible, with a focus on ESG (Environmental, Social, and Governance) principles. It filters for companies that promote better diversity, governance, sustainability, and community.
What is the difference between the Responsible Investing Portfolio and the Environment and Cleantech Thematic Portfolio?
Responsible Investing is an ESG-optimised (Environmental, Social, and Governance) portfolio. When you invest in this portfolio, you are supporting a broad range of companies that make a positive social and environmental impact on society, and consider factors such as sustainability, diversity, inclusion, transparency, and community as part of their business operations. In other words, it is industry-agnostic. Through this portfolio, you have the option to build your core wealth with ESG aligned principles.
In contrast, Environment and Cleantech focuses on the environment industry specifically. It is a thematic portfolio that invests in innovative low-carbon technologies and sustainable solutions to fight climate change, such as solar energy. The companies in this portfolio have business operations that are directly relevant to clean energy, green growth, clean water, and sustainable waste management. As with our other Thematic Portfolios, Environment and Cleantech provides an option to diversify your investments.