Brett Jollie
Global asset manager abrdn has launched the first of what will be a series of sustainable actively managed exchange traded funds (ETFs) on the Australian Securities Exchange as part of a broader business strategy to increase investor access to its investment solutions across asset classes, regions and markets globally.
The abrdn Sustainable Asian Opportunities Active ETF fund (ASX: ASAO) is designed to provide investors with high capital growth over the medium to long term by seeking exposure to Asian markets excluding Japan.
The fund invests primarily in a portfolio of around 35-70 Asian (excl. Japan) quality listed companies which have the potential for capital growth and increased earning potential. abrdn searches out investment targets using a team of 40-strong equity professionals based at seven equity desks across Asia Pacific.
Brett Jollie, Managing Director – Australia, said the launch of the sustainable active ETF series was a core part of abrdn’s product and distribution strategy in the region. The choice of the abrdn Sustainable Asian Opportunities Active ETF fund as ‘the first cab off the rank’ was a reflection of abrdn’s 30 years of experience in managing Asia Pacific equities, the centrality of ESG to its investment approaches, as well as the opportunities abrdn currently sees for investors in Asia.
“We have been long time leaders in Asian and emerging markets investing and this heritage and level of commitment allows us to see opportunities where others can’t. Our research teams have identified several structural themes which we believe will support growth in Asian markets in years to come and the new Active ETF will give access to these. In the meantime, Asia offers attractive valuations with companies trading well below their five-year averages, with the risks of higher inflation and slower growth already priced in.
“Asia represents the most economically dynamic collection of markets anywhere in the world and is well positioned to benefit from the huge investment needed to decarbonise the world, with substantial opportunities in renewables and energy storage production capacity,” Mr Jollie said.
The abrdn Sustainable Asian Opportunities Active ETF investment team combines its own ESG expertise with strong top-down support from abrdn’s Sustainability Group of more than 30 ESG specialists. Our investment team employs a number of sustainable investing approaches, including assigning every company an ESG Quality rating to identify sustainable leaders or improvers, utilising a separate ESG House Score to complement our bottom-up research, and targeting a carbon footprint that is at least 20% lower than the benchmark.