Allianz Global Investors is expanding its sustainable fund range with the planned launch of four more funds in Singapore.
The firm has received approval from the Monetary Authority of Singapore to launch the Allianz Smart Energy, Allianz Clean Planet, Allianz Sustainable Health Evolution and the Allianz Positive Change funds to retail investors in the Lion City, according to the regulator’s records.
The funds are relatively new, with three of them having incepted in 2020, according to their product highlights sheet.
The new offerings are global equity products that are aligned with the UN’s sustainable development goals (SDGs), the prospectus noted.
|Allianz Smart Energy||Companies engaged in the area of transition of energy usage||October 2019|
|Allianz Clean Planet||Companies that focus on having a cleaner environment||October 2020|
|Allianz Sustainable Health Evolution||Companies engaged in health innovation and promotion||November 2020|
|Allianz Positive Change||Companies providing solutions that enable the attainment of UN’s SDGs||October 2020|
Allianz GI has been active in offering sustainable and thematic products. Last year, the firm received approval from both the MAS and Hong Kong’s Securities and Futures Commission (SFC) to launch the Food Security Fund, which is also an SDG-aligned strategy. Before that, it launched the thematic Pet and Animal Wellbeing Fund in both jurisdictions.
Another thematic product that has gained popularity is the Allianz Thematica Fund, which was launched in 2019 in Singapore, according to Kelvin Lam, head of sales for Southeast Asia retail distribution at Allianz GI. The fund, which has adopted the firm’s new climate engagement with outcome approach (see below), now has assets of around $2.2bn, he said.
Other sustainable products offered by the firm include the Global Sustainability, the Global Water, the Allianz Euro Credit SRI and the Green Bond funds, according to the firm’s website.
Besides the four new sustainable funds, the firm has also received approval from the MAS to launch the Global Equity Growth fund and the China A Opportunities Fund, which were incepted in 2017 and in January this year, respectively.
SUSTAINABLE INVESTMENT DRIVE
Separately, Allianz GI also announced this week that 74 of its equity, fixed income and multi-asset funds would join its current sustainable investment offering.
Portfolios will be constructed using ESG assessments reflecting clients’ values through its sustainable minimum exclusions and will adopt a new engagement approach or “SRI best-in-class considerations”, the firm said in a statement.
The firm is also launching a dedicated climate engagement approach, which it calls “the climate engagement with outcome”, in which it will engage with companies on the climate transition pathway towards a low carbon economy. Fund managers will actively engage with the top 10 absolute carbon emitters within their portfolio as a proxy for climate impact. The top 10 emitters in each fund are chosen irrespective of their sector, allowing climate impact to be addressed at a fund level.
Examples of engagement targets include greenhouse gas emissions reduction targets or board-level remuneration targets linked to climate change. If the issuer does not respond to requests or does not show an improvement effort in their climate pathway, divestment will be considered in the escalation process.
“Climate change is one of our planet’s most pressing challenges, and AllianzGI believes that asset managers should take a more active role in shaping the future. The Climate Engagement with Outcome approach represents further development in our proactive stewardship approach. Given our experience from engagement with companies so far, we are confident that companies are open to this dialogue and will share these views,” Matt Christensen, global head of sustainable and impact investing at Allianz GI, said in the statement.
To learn more about ESG in Asia, please click on www.esgclarityasia.com
Fund Selector Asia will be running Spotlight On: ESG on 22 – 25 March and ends with a LIVE event (on the 25th) where we will bring together a panel of fund selectors and the fund managers to discuss their views and join an interactive Q&A session.