CGS International’s latest ESG update reveals that its portfolio has returned 22.3% since May 2024, underperforming the MSCI SG Index’s 24.9% return. Despite this, the portfolio outperformed the MSCI Singapore ESG Price Return Index, which saw a 16.96% increase. The performance disparity is attributed to the price outperformance and heavier index weightings of companies like SE, GRAB, and financial institutions such as DBS, OCBC, and UOB, compared to CGS International’s equal-weight portfolio.
The Singapore government remains committed to its Green Plan 2030, with no significant policy changes in the recent budget. New initiatives include incentives for electric heavy vehicles, a voucher scheme for energy-efficient consumer durables, and an expansion of the public transport network.
Globally, sustainable fund assets reached a new peak of $3.2t by the end of 2024, marking an 8% year-on-year increase. Europe continues to dominate the sustainable fund landscape, holding over 80% of global assets, whilst the US has seen a decline to 13%. The US administration’s rollback of ESG initiatives has contributed to this decrease.
CGS International has decided to maintain its current ESG portfolio, citing the fundamental growth drivers and ESG credentials of its selected stocks. The portfolio includes companies such as CD, CLI, KEP, PAN, SCI, ST, STE, STM, UOB, and YZJSGD.
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