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 four funds consist of three absolute return funds: Permal Fixed Income, Permal FX Financial Futures, Permal Long/Short Global Equity; and the directional fund Permal Investment Holdings.
The new classification should be handy for Singapore-based clients who do not want US dollar exposure. A key driver for introducing the product was the demand from PermalÆs non-Singaporean investors who have a positive view on Asian currencies, however.
The new class is hedged by rolling a monthly Singapore dollar hedge versus the US dollar share class. That means at present the Singapore dollar investor has to pay a hedging fee of 1.5% for using the new share class, though the carry costs are dependent on whatever the interest rate differentials are at the time.
While the Singapore dollar share class is aimed at retail investors, it is meant for sophisticated, accredited investors, and Permal does not think it presages a move into high street retail.
Permal wants to gravitate towards providing local offerings, rather than occupying the role of being an offshore manager. It would like to be able to offer a product denominated in a renminbi share class, but until there is an effective exchange market, that will remain a dream.
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.