Milltrust joins impact-themed bandwagon

April 15, 2020

BY Milltrust International Group

By Fund Selector Asia, Nancy Qu

It will be the 12th impact fund launched in Singapore, including two this year.
Milltrust International has launched the Climate Impact Asia Fund, in collaboration with Environmental Investment Services Asia, a Hong Kong-based environmental investment management firm, and World Wide Fund for Nature Hong Kong, which serves as environmental consultant to the fund, according to a statement from the firm.

“The fund targets professional investors and is currently registered for distribution in Hong Kong, Singapore, UK and Ireland,” a spokesman for the firm told FSA.

“We don’t have distribution partners for the product but we work with Environmental Investment Services Asia, which is a registered firm with the Securities and Futures Commission in Hong Kong,” he added.

This product seeks to invest in Asian-listed companies that the managers believe will provide long-term returns as well as “a positive impact against climate change”, the statement said.

The firm believes it can achieve both aims.

“Through our De-carbon Asia Impact Investing Index, we have proven that a portfolio of low-carbon environmental goods and services companies can deliver superior performance,” Jeremy Higgs, managing director at EISA and investment manager to the fund, said in the statement.

Potential investments include businesses in renewable energy, environmental services, water treatment and distribution, low-carbon transportation and energy management services.

Asia-Pacific is responsible for almost half of global carbon dioxide emissions, the statement noted.

Milltrust International Group is co-headquartered in Singapore and London and targets institutional and high net worth investors. The firm also manages an emerging market multi-manager product.

Impact funds in Asia

Impact funds have had modest popularity in Asia. There are 11 products available for accredited investors in Singapore and one for retail investors in the Lion City.

In February, Goldman Sachs introduced the GS Global Environmental Impact Equity Portfolio in Singapore. Last month, Nomura Asset Management debuted an impact fund in Singapore that aims to achieve “positive social and environmental impact without sacrificing returns”.

Impact funds with a three-year track record

Source: FE Fundinfo. In US dollars, three-year performance.