Insular Life (InLife) recently launched an investment fund that supports Environmental, Social, and Governance (ESG)-focused outcomes with the potential to earn monthly payouts. Called Systematic Global Sustainable Investment Fund (GSIF), it is the first of its kind in the Philippine market.
“InLife customers will have the option to invest in globally-diversified portfolio that promotes ESG values. Not only will they receive potential payouts, they will also take part in a portfolio with lower carbon intensity for the long term by supporting the growth of these companies,” said Gae Martinez, InLife Chief Marketing Officer.
This new sustainable income strategy will be investing into a fund managed by BlackRock, one of the leading asset managers in the world and one of the leaders in championing ESG’s impact on investments. InLife is working on the GSIF with the group to ensure that its customers will likewise have access to investing in global companies through BlackRock’s capabilities, to enjoy the benefits of diversification.
Sustainable investments worldwide are on pace to constitute 21.5% of total global assets under management (AuM) in less than five years, according to PricewaterhouseCoopers. It is projected to grow further as more stakeholders expect companies to play a role in advancing ESG principles.
Potential Regular Payouts With Up to 6% Yield
While the number of ESG strategies is steadily growing in the Philippines, GSIF is the first to offer monthly payouts, with yields of up to 6% p.a. potentially.
“It is a sustainable portfolio that generates income. With GSIF, you are uncovering ESG risks and opportunities, so that your portfolio is set up for long-term financial performance,” said Jose Paolo T. Puno, InLife Assistant Vice President for Product Development.
He added that GSIF is most suited for individuals who believe in ESG, are looking for medium to long-term investment opportunities and have invested on fixed-income instruments.
How Sustainable Investments Are Chosen
GSIF has three equally weighted sustainable, systematic strategies — sustainable developed defensive equity income, sustainable global growth equity income, and sustainable global investment grade and high yield bonds (at a maximum of 20 percent).
“It’s an investment approach that uses big data, technology such as machine learning and AI, and human insights from experienced global asset managers. Our target fund manager is the leader in systematic investing that’s why they are the right partner,” explained Puno.
In a study by NYU Stern, the researchers found evidence that ESG factors could contribute to improved financial performance over longer time horizons. The GSIF target manager incorporates ESG insights when identifying the investment signals. Combined with the traditional sources of information and the experience and insights of the target manager, this human-machine approach enables a more holistic view of companies.
Income and Defensive Growth
“We have seen investors put more emphasis on ESG integration into investment management in the past few years, and income funds have seen strong growth in the past five years. Aside from seeking ESG outcomes, the target fund strategy aims to provide defensive growth. GSIF is suited for customers with a moderate risk profile or those who are more aggressive but seek to balance their current portfolio with a sustainable allocation. It’s a win-win Fund for everyone,” Martinez said.
GSIF is currently available through InLife’s Solid Fund Builder and Dollar Solid Fund Builder policies.