The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
To determine the ratings, Mercer, which has been appointed by the IFC to conduct the study, is approaching 50 managers based in the emerging markets of China, India, South Korea and Brazil. The research will also include a survey of over 200 managers globally who invest in emerging markets.
Tim Gardener, global business leader of Mercer's investment consulting business, says the survey is expected to shed light on the sustainability of growth in these four countries.
"As demand for investment in emerging markets has grown, so too has the need for a better understanding of the environmental, social and governance forces at play in these markets and their impact performance," he says.
The results of the interviews with managers on the ground in China, India, South Korea and Brazil is expected to provide investors with an insight into how emerging markets are operating and the initiatives they demonstrate in environmental, social and governance factors.
Helga Birgden, Mercer's responsible investment leader for Asia-Pacific, says there are likely many managers and companies already engaging in sustainable practices, but not promoting themselves as such. ôA key aim of the study is to ensure these practices and managers are duly recognised," she says.
A joint IFC and the Economist Intelligence Unit survey shows that about 80% of asset owners who currently do not integrate environmental, social and governance policies in their emerging market investments expect to do so over the next three years. That shows the difficulty in finding fund managers with the required capacity.
The sustainable investing programme of IFC has been working, for the past four years, on increasing the sustainability of investments in emerging markets. Through the programme, IFC delivers technical and financial support to projects that help investors capture the potential for superior long-term returns in emerging markets using a sustainability approach.
Mercer has assembled a team of over 20 investment consultants and researchers, and will make use of its Global Investment Manager Database in each of the emerging markets to conduct the research. The findings will be made publicly available late this year.
Sunsuper and QSuper appoints CIO for combined entity; State Street appoints heads of HK and Taiwan; Nothern Trust rebuilds Apac team; Manulife IM names emerging markets fixed income CIO; RBC Wealth Management hires four into HK; Lombard Odier hires two senior equity managers; Allianz Global Investors appoints Asia hand as equity CIO; and more.
Investors from China and the US are expected to continue buying assets in each other’s markets despite the blacklist of Chinese firms with military and surveillance ties.
Stronger government actions are needed to meet the Paris Agreement goal of limiting global temperature rise to 1.5 degrees, investors such as Hesta and CDPQ signed in a statement.
AsianInvestor explains why we chose the winners of the second half of our 2021 fund manager winners, by major local markets.