Emerging markets, including Asia are at the epicenter of many of the world’s most important sustainability challenges, from environmental issues to social inclusion and economic development.
For investors seeking sustainable solutions, these challenges also provide a unique investment opportunity, with emerging markets now home to companies that are addressing these issues by providing both innovative and scalable solutions.
The Matthews Emerging Markets Sustainable Future Fund invests in companies that are addressing global environmental and social challenges while following good governance principals and contributing to a sustainable future. Some of the Fund’s key characteristics include:
Using active proprietary research, we go beyond emerging markets’ large-cap companies and large markets to identify investment opportunities that we believe will drive positive outcomes.
With leading and emerging sustainability solution providers and industry champions, assessed on exposure to key environmental and social focus areas, growth prospects and valuation.
Based on our 30 years of investing in emerging markets, we believe that active engagement is more productive in dialogue and with fluency in local norms and culture.
The Matthews Emerging Markets Sustainable Future Fund deliberately and intentionally promotes a broad—not narrow—range of positive environmental and social developments in addition to broader ESG issues.
Our ESG and sustainable investment framework is focused on identifying a company’s current or future contribution to positive environmental, social and governance (ESG) developments, while at the same time ensuring it does not pose harm to the environment or the society at large through an active engagement process.
Exclude unsustainable industries and businesses
Identify sustainable companies with exposure to key environmental and social focus areas
Growth prospects and valuations assessment
Engagement with portfolio companies
Matthews Asia bring its 30-plus years of active investment expertise in emerging markets to uncover companies that can deliver profitable growth while addressing a broad range of sustainability challenges. Positive outcomes pursued by companies in the Fund include:
Carbon Emissions Reduction
Alleviating Poverty
Affordable Healthcare
Financial Inclusion
Affordable Housing
We look for companies that are part of the solution, not the problem. The Fund employs ESG standards and a sustainability screening framework in combination with a bottom-up, fundamental investment approach. We seek to invest in companies that improve quality of life by driving positive environmental, social and economic developments over the long term.
Lead Manager Vivek Tanneeru draws on a team that includes our Head of ESG Research as well as more than 35 investment professionals that conduct in-depth, on-the-ground fundamental research to identify the most compelling opportunities.
"The emerging markets, including Asia, is home to many companies that address sustainability challenges successfully and are global leaders in their focus areas. Our experience and ability help us to identify investment opportunities in the roughly half of our emerging markets universe that is not rated by the widely-used ESG data service providers."
The Fund invests in growth companies that seek to contribute to a sustainable future.
Features:
40-70 stocks
All-cap, Growth, Sustainable Investment
* Formerly known as the Matthews Asia ESG Fund
The Fund's consideration of ESG factors in making its investment decisions materially impact the investment performance of the Fund. These and other risks associated with investing in the Fund can be found in the Prospectus.