Matthews Asia fund targets sustainability challenges

Group says sustainable portfolios must allocate to Asia

Matthews Asia has launched its Sustainable Future Fund, investing in companies addressing global environmental and social challenges and following good governance.

The strategy, classed as Article 9 under the Sustainable Finance Disclosure Regulations, currently includes companies bringing positive outcomes such as:

  • Climate change mitigation and adaptation
  • Clean environment
  • Sustainable production and consumption
  • Health and well-being
  • Human capital development, inclusive development or enablement of sustainable development

Vivek Tanneeru is lead manager of the fund and is supported by Kathlyn Collins, Matthews Asia analyst and head of ESG.

The fund group said it believes sustainable portfolios must include a dedicated allocation to Asia: “The region is the epicentre of many global sustainability challenges and solutions, such as climate change, poverty alleviation, access to affordable health care and housing, and financial inclusion.”

Matthews Asia also stated the region has a substantial range of domestic and global leaders addressing sustainability challenges meaning investing there can bring positive change “at scale.”

Tanneeru said: “Asia is an extraordinarily diverse region and offers a deep universe of sustainable investment opportunities across frontier, emerging and developed markets. However, ESG research and rating providers have yet to adequately cover this universe, particularly when it comes to small and mid-cap companies and what is covered often fails to reflect local intricacies and context.”

He said his team has a deep understanding of the sustainable investment universe in Asia and the fund will engage with companies to improve practices.