There is definite proof that sustainability-focused funds are outperforming their conventional counterparts. But some experts believe the traditional explanations for this are wrong.
According to the Kuala Lumpur-based asset manager, the fund will invest in array of securities that either own or operate infrastructure assets. These will include companies involved in water, waste treatment, airports, toll road and rail systems and will target investors who have a more risk adverse appetite and want consistent dividend income.
Hwang-DBS executives say they were motivated by the success of global infrastructure funds. According to the firm, the infrastructure asset class has outperformed global equity and bonds since 2000. Hwang-DBS expects annual returns of the fund to be between 8% and 12%.
The fund has an approved fund size of 600 million units which are priced at 50 sen per unit, while the initial minimum investment is set at RM1,000 and subsequent investments at RM100. Management fees have been set as 1.8% of fund NAV.
The latest fund by Hwang-DBS Investment Management will be available from 13 distributors around Malaysia, which includes names such as CIMB Bank, Hong Leong Bank, HSBC, Maybank and Standard Chartered.
The Global Infrastructure Fund is the fourth global fund brought to the Malaysian market by Hwang-DBS Investment Management and comes soon after the firm launched the first Vietnam fund in Malaysia. It also comes after recent regulatory changes by Bank Negara Malaysia, the central bank, which has allowed unit trust, insurance and fund management companies to invest up to 50% of net asset value (NAV) offshore. Previously, this was capped at 30% of NAV.
The firm also plans to launch another three to four products in 2007, but did not specify what asset classes they would consist of.
To get the clarity they want to make informed portfolio decisions, asset owners and managers must now blend and adapt multiple sources of traditional and non-traditional data to create actionable insights, said speakers at a webinar hosted by AsianInvestor and IHS Markit.
The country's largest insurer Ping An set up a $62 billion green investment target by 2025. Several more players are also joining the hunt for sustainable assets.
The boss of Thailand’s second-largest pension fund hopes that proposed changes in the law will help her diversify more into overseas markets. She is particularly bullish on China.
Investors can still find spread premiums in niche private debt, with the asset class's prognosis looking strong, said a keynote speaker at AsianInvestor’s latest summit on Wednesday.