Investing in companies in Asia that demonstrate ESG business practices
San Francisco, CA, May 5, 2015—Matthews Asia has announced today the launch of the Matthews Asia ESG Fund
(Investor Class: MASGX; Institutional Class: MISFX). Managed by Vivek Tanneeru, the Matthews Asia ESG Fund will seek to generate longer-term capital appreciation by investing in companies that meet one or more of its environmental, social and governance (“ESG”) standards.
Matthews Asia believes that businesses that meet ESG standards are generally businesses that make human or business activity less destructive to the environment, as well as businesses that promote positive social and economic developments.
For investors looking to make investment decisions based upon ESG factors, Asia represents one of the best opportunities to gain exposure to companies that can make a long-term difference to the region and the world. Matthews Asia believes many global environmental issues cannot be addressed effectively without focusing on Asia. For instance, with respect to climate change, Asia emits nearly four times as much carbon as the European Union and over twice as much as North America, so it is vital to address the issue in Asia to solve the problem globally.
Vivek Tanneeru, Lead Portfolio Manager
, comments: “We believe Asia represents a significant opportunity for investors seeking companies that offer the potential for attractive returns while also demonstrating ESG practices. We look for investments in companies that can generate attractive returns over the long term while also demonstrating ESG business practices that have a positive societal impact within its industry or sector. In common with our other Funds, we also seek quality companies that have strong competitive positions, good growth potential and are run by quality management teams.”
Robert Horrocks, PhD, Chief Investment Officer
, added: “A growing number of companies in Asia are now recognizing the value of adopting ESG business practices and the potential positive effect it can have on generating additional shareholder returns. As the focus on ESG in Asia increases, this active investment approach could potentially provide better risk-adjusted returns due to its explicit focus on long-range risks to businesses emanating from environmental, social and governance factors.
Since the firm’s inception in 1991, a key part of our investment process has always been a focus on identifying companies that adhere to good corporate governance and respect for minority shareholders. We therefore see the broader inclusion of environmental and social factors into the investment approach of this Fund as a natural evolution of our existing investment process, and the Fund provides investors with a solution to enable them to align their corporate or personal values with their investment portfolio.”
Kanter and Co.
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About Matthews Asia
At Matthews, we believe in the long-term growth of Asia. Since 1991, we have focused our efforts and expertise within the region, investing through a variety of market environments. As an independent, privately owned firm, Matthews is the largest dedicated Asia-only investment specialist in the United States. With US$30.0 billion in assets under management as of March 31, 2015, Matthews Asia employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information please visit matthewsasia.com
Matthews Asia ESG Fund Share Class Information
Matthews Asia ESG Fund’s consideration of ESG factors in making its investment decisions may impact the Fund’s relative investment performance positively or negatively.