East Capital, an emerging and frontier markets asset manager founded in Sweden, says it has raised capital from Nordic investors to support the launch of an emerging markets fund investing in sustainable companies.
The East Capital Sustainable Emerging Markets fund will invest in renewable energy and other fast-growing clean technologies, as well as off-benchmark exposures including certain frontier markets.
China A-shares, which MSCI recently said it would add to the MSCI Emerging Market Index, will also be bought by the fund, which uses the same index as its benchmark.
Peter Elam Håkansson, chairman and CEO of East Capital, said: “China’s war on pollution has set an unparalleled investment programme going, which has created one of the largest markets globally for companies providing solutions to sustainability related challenges, companies this fund will invest in.”
The fund targets companies with high growth potential and strong environmental, social and governance profiles, and will overweight in domestic growth and consumer themes.
The fund is Luxembourg-domiciled Ucits product managed by Håkansson and backed by portfolio managers Adrian Pop and Francois Perrin in Hong Kong, and head of corporate governance and sustainability, Louise Hedberg.
The fund will be available for both institutional and retail investors in most European countries.
A figure for the seed capital from Nordic investors was not given.
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