BEA Union Investment Management has reclassified its Asia bond fund as an impact fund for Hong Kong retail investors.

The BU Asia Impact Bond Fund, which was previously the BU APAC Bond Fund, invests at least 70% of its portfolio in green, social and sustainability bonds in Asia or ones denominated in Asia currencies.

BEA Union Investment CIO of fixed income Pheona Tsang said ESG bond issuance, and the quality of the bonds themselves, was accelerating, and that Asia’s steady economic growth and high-rate environment would be beneficial for investment grade bond investors.

In this environment Eleanor Wan, CEO of BEA Union Investment, said the firm was “excited” to introduce the first Hong Kong-domiciled Asia impact bond fund.

She added: “Investor demand for impact bonds are growing across the world, including Asia. Hong Kong, rising to becoming the region’s centre for green and sustainable finance, is also the gateway to the Greater Bay Area. As a Hong Kong based asset manager, we are committed to contributing our part in fostering the growth of ESG investment in the region.”