Responsible investing includes allocating to poor-ESG performing EM countries and helping them shift to greener solutions, instead of divesting completely, experts said.
ChinaAMC is currently the industryÆs largest fund house with total assets under management of $248 billion as at the end of 2007. Harvest is 30% owned by Deutsche Asset Management and is the industryÆs third largest with $207 billion in assets at the same period.
The two fund houses say the Hong Kong base will be used for QDII-related investment and research functions initially. Any further plans are still under discussion, but it is likely ChinaAMC will follow a boutique model or seek an external partner in building a regional presence.
Ding Chen, a director for international business at China Southern, says she hopes a Hong Kong presence will be a first step in turning the firm into a global business in the future.
However, these fund executives say they are concerned about attracting good talent in the city and finding ways to keep an overseas presence sustainable for the long-term.
Unlike Harvest, which has its foreign product tied to shareholder Deutsche, ChinaAMC is a local independent fund house wholly owned by Citic Securities. It has expanded recently after a merger with Citic Fund Management, a smaller fund house owned by shareholder Citic.
ChinaAMC launched its first QDII fund in September 2007. US fund house T. Rowe Price acted as its portfolio advisor.
Inflation, fluctuating interest rates, Covid-19 shutdowns, and sporadic reopenings have led to bouts of volatility in the market, with tech stocks bearing the brunt of the selling over the last month.
Amid today’s macro landscape and the need to rethink portfolio planning, asset owners in Asia Pacific are more eagerly embracing responsible investing, says Nuveen’s Simon England-Brammer.
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Nearly 50% of institutional investors and family offices in Asia Pacific intend to increase the number of external managers for their thematic investments in equities over the next 12 months.