There is definite proof that sustainability-focused funds are outperforming their conventional counterparts. But some experts believe the traditional explanations for this are wrong.
The target size of the fund is $50 million and fees for investors are a 5% sales fee plus an annual management fee of 1.75%.
In classic contrarian style, the equity-only fund will be looking to buy stocks that are being sold down, then on the basis of a valuation analysis, sell them again when they come back into vogue.
ôWeÆll be screening stocks when we see them being sold and if we perceive intrinsic value, we will be targeting them,ö says Raymond Kong, the assistant vice-president and product manager of Manulife in Hong Kong. ôWe need to be careful though as we donÆt want to catch a falling knife, so we will look for a catalyst which will unlock the value over 6-12 months.ö
The fund returns will be benchmarked against the S&P Broad Market Index which, of course, has been mostly negative of late.
Manulife Asset Management (Hong Kong) is a subsidiary of the North American funds firm Manulife Financial/John Hancock, a fund management behemoth with $390 billion under management.
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.