China ESG - Weekly news update Aug 2020 / 01

Taiwan's Bureau of Labor Funds will invest in overseas ESG bonds for the first time, amounting to US$2.3 billion 

The Bureau of Labor Funds of Taiwan said on Tuesday that it will invest in overseas environmental, social and corporate governance (ESG) bonds for the first time, amounting to 2.3 billion US dollars. It includes the New Labor Pension Fund of 2 billion US dollars, the National Pension of 3,100 million U.S. dollars, each commissioned by five asset management companies. The deadline for submission is on August 10. Xiuwa Chen from the Bureau of Labor Funds told Reuters that this is the first time to invest in ESG bonds due to the rapid development of overseas markets. The Bureau commissioned Bloomberg to compile a global integrated corporate bond dollar index to exclude controversial industries such as tobacco, alcohol, and weapons.   


Canadian wealth firm enters China’s private funds market 

Power Corporation of Canada’s wholly foreign-owned enterprise (WFOE), Power Sagard (Shanghai) Investment Management, has received Private Fund Management (PFM) license from the Asset Management Association of China (Amac) on Monday, according to Amac records. A PFM license enables foreign entities to develop and sell funds investing in onshore assets to domestic qualified investors, which include institutional and high net worth investors. Power Corporation’s WFOE was established in April last year, with a registered capital of $6m (£, €), according to Amac.  


Morningstar launched a new rating system for China funds 

Morningstar, Inc. (Nasdaq: MORN), the world’s leading independent investment research institution, announced the official launch of an analyst-driven rating system for about 80 China open-end funds approved by the China Securities Regulatory Commission. The rating system consists of Gold, Silver, Bronze, Neutral, and Negative ratings. The new rating system evaluates the fund based on five key factors: people, process, parent, performance, and price. The rating system is based on the analysts' in-depth research and judgment on the fund's long-term risk-adjusted returns to exceed similar/performance benchmarks. 

 Source: Morningstar