TLDR:
- Family offices in Hong Kong and Singapore are expanding their impact investing approach beyond private markets.
- There is a shift across different asset classes, including public equity, private debt, and real assets.
Family offices in Hong Kong and Singapore are broadening their impact investing approach beyond just private markets, as more environmental and social impact products and opportunities emerge across asset classes. Katy Yung, managing partner at Sustainable Finance Initiative (SFi), noted that overseas families are embracing a multi-asset class approach when it comes to impact investing for their investment portfolio. In Asia, there is still room for evolution in this space.
Asian family offices often start impact investing from the private side, but more opportunities in public equity, bond, and private debt are emerging in the region. Large Asian asset owners, like Japan’s GPIF, are playing a pivotal role in facilitating the emergence of ESG-focused investment products.
Investing in impact funds offers families a way to leverage expertise of fund managers in alignment with their interests, such as climate crisis, sustainable agriculture, or financial inclusion. However, there are challenges faced by Asian family offices, including shorter manager track records, market uncertainties, and enterprise-level risks.
