24 C
Batangas

BDO follows global trend on sustainable investments, still robust amid COVID-19

Must read

- Advertisement -

BDO Unibank’s foray into sustainable investments continues to pay dividends even amid the pandemic, following the global trend of strong growth in environmental, social and governance (ESG)-themed investments.

Economic pundits observed that COVID-19 has only strengthened the importance of ESG as investors look for more resilient investments amidst economic uncertainties brought about by the pandemic.

Globally, assets under management (AUM) anchored on sustainable investments jumped 29% in the fourth quarter of 2020 to $1.7 trillion.

Domestically, BDO’s ESG Unit Investment Trust Fund (ESG UITF)—the first of its kind in the Philippines—posted returns of 13.95% and 19.90% in the last six and three months, respectively, leading to end-December 2020.

As of end-2020, the value of the AUM of this instrument grew 79% to PhP99.4 million from P55.5 million in 2016.

From Php55.5 million in 2016, the AUM of BDO ESG UITF have grown steadily to Php60.1 million in 2017, Php66.6 million in 2018, Php75.2 million in 2019, and Php99.4 million in 2020.

SUSTAINABLE ENERGY. A 54-megawatt wind farm in Pililla, Rizal with 27 turbines generates clean energy and is also a spectacle among local tourists. This is one of the many sustainable energy projects BDO Unibank, through its investment banking arm BDO Capital & Investment Corp., has funded along with other local commercial banks.

The BDO ESG UITF followed a similar higher return performance shown by ESG funds globally, proving the importance of sustainable business practices.

“While the Fund is still small, it has the potential to grow in size and importance as more investors are consciously looking for companies that protect the environment, are socially responsible, and practice good governance in a sustainable manner,” BDO said.

The BDO ESG UITF allows investors to see value in socially responsible companies as an investment destination for their funds, and to invest in one fund that covers several companies, instead of investing separately in every local company that they believe creates a positive contribution to society.

“Its importance is further heightened during this time of the pandemic, as sustainable investment amplifies the Bank’s resiliency to unforeseen global or local crises,” the Bank added.|

- Advertisement -
- Advertisement -

More articles

No need to ‘re-invent the wheel’ on media monitoring MALACAÑAN—THE Presidential Task Force on Media Security (PTFoMS) reminded the public and the Commission on Human Rights (CHR) that there are already existing and functioning mechanisms to protect the members of...
AP Renewables Inc. (APRI) together with the ER1-94 Desk of Aboitiz Power (AP),  facilitated a one-day refresher training for its host communities through an event called the ER 1-94 Clinic last February 12 at Tiwi Geothermal Powerplant Conference Room,...
VALENTINE'S Day is a celebration of love! Save the Children Philippines highlights how love may be communicated within the family through love letter writing! Children and teens write love letters to their parents to explain how they desire to...
- Advertisement -

Latest article

- Advertisement -