1st PH sustainability fund shows how to profit from resilience
The Philippine equity market has been unforgiving over the past five years. Investors have had to navigate the 8.6-percent contraction of the Philippine Stock Exchange Index (PSEi) since mid-2021.
Around this time, the ATRAM Philippine Sustainable Development and Growth Fund (SDGF) was launched—the first and only domestic sustainability-themed equity fund in the Philippines.
On its fifth anniversary, the SDGF gained 23.1 percent since inception, beating the PSEi by 31.6 percent.
Despite the retreat of investor interest around the globe on sustainability following the second administration of US President Donald Trump, the SDGF has remained consistent in delivering returns and delivered a positive 3-percent return in 2025, which again trumped the PSEi by 10.3 percent.
This 2026, the SDGF still ranks within the top five unit investment trust funds in the Philippines as of last week and top 10 over the past two years in performance.
Investment approach
SDGF is unique in its investment approach, which is based on outcomes aligned with the United Nations Sustainable Development Goals (UN SDGs) and relies 100 percent on selecting companies based on sustainability integration. This approach is designed not just to deliver above-market returns but also to make the portfolio resilient during lengthy periods of market turbulence.
Jose Mari Lacson, head of Macroeconomics and Impact Investing at ATRAM, says: “Philippine equities and sustainability faced a tough couple of years, but the SDGF showed it is not the end of the world. We do not just measure returns but also sustainability-related data, such as greenhouse gas emissions and waste generation. On returns and these SDG-based metrics, the fund’s portfolio has performed better than the market and our proxy-benchmark. The SDGF shows it can help protect the returns of all stakeholders, which includes the environment, society and the economy.”
Sandra Araullo, chief investment officer (advisory) at ATRAM, adds: “The SDG Fund’s performance is proof of ATRAM’s ability to innovate for our investors. Sustainability is the choice of a new generation of investors, but more than that, the SDG Fund is a compelling option for long-term investors who want to gain the benefits of diversification and are looking for something new and exciting strategies in the Philippines.”
