Improvement in access to healthcare services and increased access to education are among the top metrics for measuring the impact of sustainable and responsible investments among Hong Kong’s wealthy, according to a survey conducted by BNP Paribas Wealth Management and Scorpio Partnership.
However, return on investments continues to be the top metric for Hong Kong investors, according to the survey that poled entrepreneurs globally who have a net worth average of $5.8m.
Top three metrics for measuring impact of responsible investments
| Return on investment | 55% |
| Improvement in access to healthcare services | 50% |
| Increased access to education | 50% |
Source: BNP Paribas Wealth Management and Scorpio Partnership
The results are similar within Asia-Pacific as a whole, where investors consider investment returns and improvement in healthcare as the two most important measurements for impact.
| Which of the following areas do you consider when measuring the impact of your sustainable and responsible investments? | ||
|
Global |
Asia-Pacific |
|
| Return on investment |
49% |
51% |
| Improvement in access to healthcare services |
41% |
47% |
| Reduction in carbon footprint |
41% |
45% |
| Improved diversity in the workforce |
35% |
39% |
| Increased access to education |
33% |
36% |
| Reduction in unemployment |
28% |
27% |
| Increased supply of microfinance loans |
26% |
24% |
| Improvement in literacy rate |
18% |
12% |
Source: BNP Paribas Wealth and Scorpio Partnership
Thematic demand
The study noted that healthcare is also a predominant theme that Hong Kong and Asia-Pacific investors look at when investing in a particular sector.
Top themes Hong Kong investors like for growth potential over five years
| Technology | 54% |
| Pharmaceuticals and healthcare | 35% |
| Financial services | 31% |
| Infrastructure | 30% |
| Sustainable and responsible investments | 29% |
|
Asia-Pacific and global averages |
||
| Global | Asia-Pacific | |
| Technology | 62% | 62% |
| Pharmaceuticals and healthcare | 30% | 37% |
| Financial services | 33% | 36% |
| SRI | 30% | 34% |
| Telecommunications and media | 31% | 31% |
| Infrastructure | 28% | 31% |
| Consumer goods | 27% | 31% |
| Logistics | 23% | 25% |
| Education | 18% | 25% |
| Passion / lifestyle investments | 18% | 17% |
Source: BNP Paribas Wealth Management, Scorpio Partnership
Mario Knoepfel, UBS Wealth Management’s Hong Kong-based Asia-Pacific head of sustainable and impact investing for advisory, believes that the investment case for healthcare has been particularly strong in advancing healthcare access in emerging markets.
“China and India, in particular, have the highest growth rates in healthcare spending,” he told FSA.
He added that Apac investors would also like to see their healthcare investments support the development of new disease treatment.
One of the bank’s healthcare-focused SRI products has had interest in the region, according to Knoepfel.
For example, around half of the $471m raised for the Oncology Impact Fund launched in 2016, which invests in companies that develop cancer treatments, came from UBS’ Asia-Pacific clients.
According to Knoepfel, the fund made a donation of around $1.2m to the American Association of Cancer Research last year and has dedicated a second $1.2m to UBS’ Optimus Foundation to support emerging market access to cancer care.
Separately, Knoepfel said that Apac-sourced assets of the firm’s sustainable cross-asset portfolio, which was launched in Asia in April last year, grew to $600m in June from $400m in March.
