ESG is no passing fad, as more investors are convinced that alpha can be found in ESG and regulators continue to introduce rules to lift ESG standards.
The fund is operating on the WMG platform and is based in Hong Kong. It managed by Lena Tan, who from 2003 to 2006 worked alongside Scobie Ward helping him manage Ward FerryÆs long/short WF Asia Fund. Before then, she had been employed by Fortis Investment, Deutsche Morgan Grenfell Peregrine and Indosuez Asia Investments.
Lena Tan is joined by senior analyst Camille Vergara, who joined WMG from Wells Capital and investment adviser Tim Cheng, who used to work at Fortis Investment.
The strategy of the fund consists of core holdings amounting to approximately 50% of the long portfolio, comprising of companies that are market leaders in secular growth industries, with high returns on equity and strong cash flows. A 30-40% allocation is made to emerging growth and thematic holdings, often mid-cap companies with niche products or scalable business models, with the potential to gravitate to becoming mature core holdings eventually. The remainder is accounted for by tactical holdings with event driven, M&A or restructuring potential.
The new fund targets returns of 15% on volatility of 12%. The fund will generally have a net long bias, with gross exposure limited to 200%, and short exposure up to 70% of NAV.
The fundÆs fees are 2% and 20%. Redemptions are quarterly with 45 days notice and no lock-ups. The administrator is PFPC International and the prime broker is Morgan Stanley. The Hong Kong lawyers are Deacons.
In its second annual sustainable investment report, the sovereign wealth fund says it invested $1.79bn in ESG bonds. Experts say asset owners next need to consolidate their standards.
Senior executives at the Taiwan financial group and Canadian pension fund believe that companies have to make an ESG transition, and may not have a choice in a few years.
Record low borrowing costs in Australia are feeding demand for the country's real estate, with domestic and global investors raising their allocations into the sector.
Experts have a diversified view on the appeal of private assets across the region, but one thing's for certain - inflows are rising, particularly into China and the US.