East Capital to launch sustainable EM fund

East Capital to launch sustainable EM fund

Swedish boutique focused on emerging and frontier markets East Capital is set to launch the East Capital Sustainable Emerging Markets fund, on 30 June to coincide with the manager’s 20-year birthday.

The strategy is a Luxembourg-domiciled Ucits fund, managed by East Capital’s chairman and CIO Peter Elam Håkansson, supported by portfolio managers Adrian Pop and Francois Perrin in Hong Kong and head of Corporate Governance and Sustainability Louise Hedberg.

Seeded by Nordic institutional investors, the fund will be available for both institutional and retail investors in most European countries from start.

The fund will invest in companies featured by high growth potential and strong ESG profiles, with a clear overweight in themes relating to domestic growth and the emerging consumer.

The strategy will also invest in renewable energy and other fast-growing clean technologies. Benchmarked against the MSCI Emerging Market Index, the fund has a broad mandate which allows it to be exposed to a selection of frontier markets and China A-Shares, besides its emerging market stocks.

Commenting on the launch, Håkansson said: “20 years ago, East Capital set off to be a long term, active and responsible investor, based on Nordic values. Since then, we have seen the world and our investment universe changing. We believe today more than ever that companies embracing sustainable practices will enjoy competitive advantages. We think the most interesting investment ideas are outside of extractive industries – and we applied this principle as far back as two decades ago in Russia.”

“We have always seen an active approach to sustainability as a natural and important part of our investment process as ESG offers insight to both risks and opportunities. Today for example, China’s war on pollution has set an unparalleled investment program going, which has created one of the largest markets globally for companies providing solutions to sustainability related challenges, companies this fund will invest in.”

East Capital manages some €2.6bn in assets.