KUALA LUMPUR: Affin Hwang Asset Management Bhd (Affin Hwang AM) 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.
In a statement Thursday, Affin Hwang AM said 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.
It added that 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.
Affin Hwang AM chief marketing & distribution officer Chan Ai Mei said sustainable investing has taken off significantly in Asia ex-Japan attracting over US$ 7.9bil of net inflows 1 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,” Chan said.
Meanwhile, Schroders deputy CEO, Singapore and head of distribution Southeast Asia Lily Choh 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 added 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 sales 2. 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,” Choh said.
The fund seeks to achieve capital appreciation over the medium to long-term period. The base currency of the fund is in US dollar.
The fund is offered in four currency classes, namely USD class, MYR-hedged class, SGD-hedged class and AUD hedged-class. The minimum investment amount is $5,000 for all listed currency classes.