Stockhom (NordSIP) Today, East Capital announces the launch of East Capital Sustainable Emerging Markets. The fund’s strategy is focused on investments in companies with sustainable business models and strong growth potential. The launch will take place on 30 June, a date that coincides with the firm’s 20th anniversary.
According to the press release, the fund will be managed by Peter Elam Håkansson, currently Chairman and CIO at East Capital, with the support of two portfolio managers, Adrian Pop and Francois Perrin, as well as Louise Hedberg, responsible for sustainability at the firm. Investments will be principally made in high growth companies with good ESG rankings, especially in sectors that benefit from domestic growth. Renewable energy and other fast growing innovative environmental solution companies also represent potential investment targets. Geographically, the investment universe will not be strictly limited to emerging markets, but will also include countries typically classified as frontier markets, as well as A-listed Chinese companies (i.e. companies listed in Shanghai and Shenzhen).
East Capital’s investment process already integrates the analysis of ESG-criteria in order to improve the risk/return of their investments. Håkansson explains that the firm has always seen active and sustainable management as a natural and important part of the investment process, as ESG issues provide insight into both risk and opportunities. As a example, Håkansson mentions China’s environmental problems. They forced the government to review environmental legislation and to launch a large investment program, prompting Chinese companies to take their environmental impact into account. According to Håkansson, this has created at the same time one of the world’s largest markets for innovative environmental solutions. These are the opportunities the new fund will be looking for.
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