Global asset manager abrdn has announced it will introduce a series of sustainable actively managed ETFs beginning with the abrdn Sustainable Asian Opportunities Active ETF.
The new fund, which will be available on the ASX under the ticker code ASAO, has been designed by abrdn to provide investors with high capital growth over the medium to long term by seeking exposure to Asian markets excluding Japan.
It invests primarily in a portfolio of around 35 to 70 quality-listed companies that have the potential for capital growth and increased earning potential.
According to abrdn, the new ETF series forms part of a broader business strategy to increase access to its investment solutions across asset classes, regions and markets.
The global asset manager said that it had chosen to kick off the series with ASAO in reflection of its 30 years of experience in managing Asia-Pacific equities, the centrality of ESG to its investment approaches and the opportunities it sees for investors in the Asian region.
“Our research teams have identified several structural themes which we believe will support growth in Asian markets in years to come, and the new Active ETF will give access to these,” said abrdn managing director for Australia, Brett Jollie.
“In the meantime, Asia offers attractive valuations with companies trading well below their five-year averages, with the risks of higher inflation and slower growth already priced in.”
Investment targets for the fund will be identified by abrdn’s team of 40 equity professionals based at seven equity desks across the Asia-Pacific region. The ETF’s investment team will be supported by more than 30 ESG specialists in abrdn’s sustainability group.
The team employs numerous sustainable investing approaches including assigning each company an ESG quality rating in order to identify sustainable leaders or improvers and targeting a carbon footprint that is at least 20 per cent lower than the benchmark.
“Asia represents the most economically dynamic collection of markets anywhere in the world and is well positioned to benefit from the huge investment needed to decarbonise the world, with substantial opportunities in renewables and energy storage production capacity,” Mr Jollie concluded.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.