Kuala Lumpur – Manulife Investment Management (M) Berhad announces today the launch of Manulife Global Energy Transition Fund (the “Fund”) that aims to support the move towards a carbon neutral economy and mitigate the impact of climate change. The Fund will be established as a wholesale feeder fund that aims to provide capital appreciation by investing at least 95% of the Fund’s NAV in BNP Paribas Funds Energy Transition (“Target Fund”), which 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 – decarbonization, digitalization and decentralization, all of which present diverse investment opportunities in the US$115 trillion transition of the global energy system1.
- 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.
Jason Chong, CEO, Manulife Investment Management (M) Berhad said: “As a leading provider of investment solutions in Malaysia, we are pleased to be collaborating with our long-time partner Standard Chartered Bank for the launch of this new Fund. We share the same mission of doing good for society and for our clients, and we believe energy transition is one of the most effective methods for investors to take part in the global effort towards net-zero. 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.”
Sammeer Sharma, Managing Director and Head of Wealth Management, Standard Chartered Malaysia 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 investments2. 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. Amidst the current lack of universal standards, it provides investors confidence that in-depth due diligence has been conducted on our 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 Investment Management (M) Berhad, we look forward to offering our clients the opportunity to easily invest in a sustainable future while seeking returns on their investments.”
Angelia Chin-Sharpe, Chief Executive Officer, Country Head Malaysia, BNP Paribas Asset Management 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. As part of BNP Paribas Asset Management’s forward-looking sustainability approach, we will continue to leverage on the deep experience of our global investment teams and strong investment track record to ensure that our energy transition strategy continues to meet the financial and social goals of our clients.”
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 has a truly global exposure, tilted towards the major hubs for environmental innovation; as of 30 June 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.
Employing an all-cap strategy enables the Target Fund to select best-in-class companies regardless of market size and allocate capital to young, high-growth disruptors to accelerate innovation in the environmental space.
The Target Fund was recognised as one of the top-performing active equity funds of 2020 by the Financial Times4 and raised EUR 1.8 billion in 2020 alone.5
Distribution of income by the Fund, if any, is incidental. Based in Euro, the Fund will be offered in RM-Hedged Class and USD-Hedged Class.
For more information about the Manulife Global Energy Transition Fund, please visit manulifeinvestment.com.my.
1Source: IRENA, International Renewable Energy Agency, World Energy Transitions Outlook, April 2021..
2Source: Standard Chartered Private Bank’s Sustainable Investing Review 2020. Click here to download the report.
3 Source: BNP Paribas Asset Management, as of 30 June 2021.
4 Source: Financial Times, “The best and worst-performing equity funds of 2020 “, January 2021 and Morningstar, measured against funds globally with assets of at least $1bn. Past performance is not an indication of future performance. You are advised not to solely rely upon the ratings or rankings disclosed herein in making an investment decision. The ratings or rankings disclosed herein are current; the same may change in the future.
5 Source: BNP Paribas Asset Management, as of December 2020
