Emerging markets investment house East Capital has launched a dedicated ESG-focused emerging markets fund, the company has announced.
The East Capital Sustainable Emerging Markets fund will be managed by East Capital’s chairman and CIO, Peter Elam Håkansson.
Portfolio managers Adrian Pop and Francois Perrin will assist Håkansson, along with the firm’s head of corporate governance and sustainability, Louise Hedberg.
The Luxembourg-domiciled fund will invest in stocks showing high growth potential and strong ESG profiles. This is with a clear overweight in themes relating to domestic growth and the emerging consumer.
It will seek investments in renewable energy and other fast-growing clean technologies and be benchmarked against the MSCI Emerging Market Index, but will also aim to take off-benchmark exposure in frontier markets and China A-Shares.
Commenting on the launch, Håkansson said: ‘We believe today more than ever that companies embracing sustainable practices will enjoy competitive advantages. We think the most interesting investment ideas are outside of extractive industries.
‘We have always seen an active approach to sustainability as a natural and important part of our investment process, as ESG offers insight to both risks and opportunities.'
The fund will officially launch on June 30, with capital provided by Nordic institutional investors.