Affin Hwang AM launches a purpose driven solution to address global climate change
Affin Hwang Asset Management Berhad has launched the Affin Hwang World Series – Global Climate Change Fund.
The Fund is a wholesale feeder growth fund that provides access to opportunities in global equities that will benefit from efforts to transition the world into a low- carbon economy.
The Fund will feed into a collective investment scheme, namely Schroder International Selection Fund Global Climate Change Equity (“Target Fund”) which is managed by Schroders (“Target Fund Manager”). To achieve its investment objective, the Fund will invest a minimum of 80% of the Fund’s net asset value (NAV) into the Target Fund and a maximum of 20% of the Fund’s NAV into money market instruments, deposits and/or cash.
Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “Sustainable investing has taken off significantly in Asia ex-Japan attracting over US$ 7.9 billion of net inflows1 as the global pandemic highlights the importance of ESG (Environment, Social, Governance) as well as challenges the world face. These include global warming and climate change which have exposed deep fissures in society especially in terms of inequality. With coordinated efforts by governments to tackle climate change especially as the US officially re-joins the Paris Climate Agreement, we see opportunities in this space as governments pledge to increase fiscal spending towards clean energy and green infrastructure. Investors can participate in this theme through our newly launched Fund to not tap into climate change winners, but also solve a global crisis together.”
Lily Choh, Deputy CEO, Singapore and Head of Distribution, South East Asia, Schroders said, “Climate change will be the defining driver of the global economy, society and financial markets in the coming years, and the time for action is now. In order to meet the climate targets set out in the Paris Agreement, there is urgent need to reallocate significant capital towards investments that will accelerate our transition towards a low-carbon economy.”
She adds that the opportunities to allocate capital to this transition, and the resilience it provides even in the midst of the pandemic, cannot be underestimated. For instance, the electric vehicles (EV) market is maturing fast, with global sales rising 43% in 2020 despite an overall slump in car sales2. Within the next decade, EVs are expected to be the greenest and cheapest form of transport. This expansion will provide tremendous growth opportunities, not only for companies that supply the vehicles, but across the entire production chain.
“At Schroders, we have been successfully managing climate change equity portfolios as one of the pioneers since 2007, and have invested ahead in developing award-winning proprietary tools, providing robust analysis to help our investment teams assess the opportunities and risks arising from the disruptions. As an active asset manager, we also play a pivotal role in engaging with companies to re-orient towards a decarbonised economy. Notably, last year we joined 29 other global asset managers representing more than US$9 trillion in launching the Net Zero Asset Managers Initiative – it supports us in partnering with our clients and the companies we invest in to drive towards a more sustainable future for all.
“We are delighted to partner with Affin Hwang AM for the distribution of the Fund, as we believe that it will appeal to the growing number of investors in Malaysia who want to tap opportunities arising from disruptions in climate change,” Lily said.
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