KUALA LUMPUR: Manulife Investment Management (M) Bhd (Manulife IM) launched its Manulife Global Energy Transition Fund on Monday to support the move towards a carbon neutral economy and mitigate the impact of climate change.

       In a statement on Monday, it said this will be a wholesale feeder fund that aims to provide capital appreciation by investing at least 95% of the fund’s net asset value (NAV) in BNP Paribas Funds Energy Transition (target fund).

       The target fund is managed by BNP Paribas Asset Management Luxembourg and the remaining NAV of the fund will be invested in liquid assets.

       The target fund invests in three key areas of the global energy transition story – decarbonisation, digitalisation and decentralisation, all of which present diverse investment opportunities in the US$115 trillion transition of the global energy system.

       · Decarbonisation: Companies developing, transporting or integrating renewable energy such as solar, wind, hydrogen and alternative fuels.

       · Digitalisation: Companies harnessing digital solutions, new technology or advanced materials to facilitate decarbonisation and energy efficiency such as battery materials, energy optimisation controls and green building technologies.

       · Decentralisation: Companies focused on bringing power sources closer to the site of consumption or promoting more sustainable modes of transportation such as solar roof panels, electric vehicles and power infrastructure.

       Manulife Investment Management (M) Bhd CEO Jason Chong said Manulife IM was collaborating with long-time partner Standard Chartered Bank for the launch of this new fund.

       “Energy transition is not just about sorting renewable energy sources. We need to think about the wider implications of that, such as the technologies and materials involved, and how such energy can be stored, transported, and consumed.

       “This presents a diverse range of global investment opportunities for investors in Malaysia and enabling them to play a key role in achieving a sustainable world.”

       Standard Chartered Malaysia managing director and head of wealth management, Sammeer Sharma, said:

       “Sustainable investing is fast gaining traction among investors. Over the next three years, 43% of investors in Asia said they are considering putting 5 to 15% of their funds in sustainable investments.

       “However even as interest levels are growing, investors are also apprehensive about getting started and one of the reasons for this is the concern around green washing. This is why our ESG Select curation process is such a critical one.

       Sammeer said amidst the current lack of universal standards, it provides investors confidence that in-depth due diligence has been conducted on its list of high conviction sustainable funds.

       “Today, I am pleased that we are adding the BNP Paribas Energy Transition Fund to our ESG select suite and together with Manulife IM, we look forward to offering our clients the opportunity to easily invest in a sustainable future while seeking returns on their investments.”

       BNP Paribas Asset Management’s CEO and country head Malaysia Angelia Chin-Sharpe, said: “2020 was a phenomenal year for companies involved in the global energy transition.

       “We expect the opportunities in this theme to remain strong for the years ahead, as technological innovation and policy support to achieve net zero by 2050 continue to fuel the growth of these companies. This is indeed a multi-decade opportunity not to be missed.

       The fund is exclusively distributed to Standard Chartered Bank Malaysia clients. The fund is suitable for sophisticated investors who are willing to accept higher market risks and can tolerate volatility, wish to seek capital appreciation and investment exposure in global equity markets with a focus on companies that engage in the energy transition.

       The portfolio is tilted towards the major hubs for environmental innovation; as of June 30, 2021, the top countries that the target fund invests in are companies in the United States (58.83%), China (11.43%) and Spain (5.93%)3.

       The target fund is industry-agnostic and seeks out best-in-class environmental solutions regardless of sector. As of 30 June 2021, the top three were industrials (42.83%), utilities (13.68%) and information technology (12.64%)3.

       The target fund was recognised as one of the top-performing active equity funds of 2020 by the Financial Times and raised 1.8bil euros in 2020 alone.

       Based in euro, the fund will be offered in ringgit-hedged class and US dollar-hedged class.