BIZ BUZZ: Sustainability pays off

The ATRAM Sustainable Development and Growth Fund (SDGF) was designed to outperform the stock market by selecting top-rated companies based on their adherence to the UN Sustainable Development Goals (SDG), the first in the Philippines to embrace the sustainability theme.

And so far, SDGF has lived up to its promise. Despite the challenges over the past two years, it has outperformed the Philippine Stock Exchange Index by 5 percent since inception and by 1.7 percent since the start of 2024.

With a return of 7.5 percent in the first two months, SDGF (which has P300 million in assets under management) has also become one of the best-performing unit investment trust funds in the country this year.

READ: Atram rolls out pioneering equity fund

“When we launched the SDG Fund in 2021, a common question we received is whether a Philippine-based sustainability-themed fund can beat the market. With three years of outperformance, the answer is clear—yes, it can!” ATRAM chief investor engagement officer Phillip Hagedorn said.

Sandra Araullo, ATRAM chief investment officer said understanding the ‘ESG’ (environment, social and corporate governance) risks of a company helps control portfolio risk. SDGF has a lower ratio of return to risk relative to the PSEi, which means sustainability investing pays a higher return for less risk, Araullo said.

Sustainability outcomes are thus proven to be correlated to both value and growth factors of companies. This is the “future of fundamental investing,” Araullo said, noting that issues like climate change, quality education and R&D (research and development) are increasingly important to finding value in the market.

“In sum, sustainability investing is not simple, nor is it easy. But it is necessary,” she concluded. – Doris Dumlao-Abadilla

Linking ‘The Link’ to LRT-2

Robinsons Malls of the Gokongwei Group has made a breakthrough in the name of its customers by directly connecting “The Link” by Robinsons Metro East with LRT-2’s Marikina-Pasig Station.

Leading property developer Robinsons Land Inc. is set to formalize the arrangement with the signing of a memorandum of understanding today with the Light Rail Transit Authority.

LRT-2 is a heavily used line that goes through 13 stations along its 17.6-kilometer route connecting the east and western parts of Metro Manila.

Robinsons Malls says the direct connection with the LRT station – the first for the mall operator – will be a big plus for commuters and car owners who want to hop on the train to avoid congestion while taking advantage of Robinsons Metro East’s entertainment, shopping and dining options. –Tina Arceo-Dumlao