Monday, 22 December 2014
Last updated 3 hours ago
Jan 19 2010 | 1:55pm ET
China’s emergence over the past few decades as an economic powerhouse has hardly been due to its reputation for strict environmental regulations and commitment to human rights. But one new hedge fund is betting that those things are going to change.
WIM Asset Management has launched a socially-responsible investment hedge fund that will invest in Greater China, Bloomberg News reports. The new long/short vehicle will exclude companies that engage in a wide variety of behavior that has helped make China the economic powerhouse it is today.
“We have a much smaller investment universe because many Chinese companies aren’t socially responsible,” portfolio manager Wu Jun told Bloomberg. Among the companies that WIM plans to screen out are polluters and tobacco companies. The WIM Sustainable SRI Master Fund may also exclude companies with labor or safety problems, as well as those whose boards of directors are involved in lawsuits.
Despite those potentially daunting screens, Wu said China is improving in many of those areas. Just last month, the country imposed new environmental rules on steelmakers.
“Increasingly, companies that don’t adhere to environmental standards or are socially irresponsible will face a backlash from the communities they operate in and from the government,” he said.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.