Under the provisions of Article 9 of the EU Sustainable Investment Regulations, Matthews Asia has introduced its first Asia fund.
In accordance with the Sustainable Finance Disclosures Regulation (SFDR), the Asia Sustainable Future Fund will invest in businesses that support a sustainable future in Asia and that tackle major environmental and social issues worldwide.
According to the company, the Matthews Asia ESG fund's investment methodology will be used for the Asia Sustainable fund, which will be managed by portfolio manager Vivek Tanneeru with assistance from analyst and head of ESG Kathlyn Collins.
"Asia is an extraordinarily diverse region and offers a deep universe of sustainable investment opportunities across frontier, emerging and developed markets," according to Tanneeru. "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."
The fund, according to him, would "engage with companies in order to encourage sustainable practices that will help shape the world of tomorrow on topics such as climate risk disclosure, health and safety standards, the level of independent directors on boards, and gender diversity on boards."
Five of Matthews Asia's current Ucits funds have been classified as Article 8 under SFDR regulations, the company said in the same announcement.
These include the Matthews Asia ex Japan Dividend fund, the Matthews China fund, the Matthews Japan fund, the Matthews Pacific Tiger fund, and the recently launched Matthews Asia China A-Shares fund.
By fLEXI tEAM