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Emerging markets not as high-risk as perceived: impact investor responsAbility

Janice Lim
Published Mon, Oct 30, 2023 · 05:00 AM
    • The demand drivers of growth in Asia are also not export-driven, but rooted in domestic consumption.
    • The firm has about US$3.7 billion of assets under management across three investment pillars: financial inclusion, climate finance and sustainable food.
    • The demand drivers of growth in Asia are also not export-driven, but rooted in domestic consumption. PHOTO: BLOOMBERG
    • The firm has about US$3.7 billion of assets under management across three investment pillars: financial inclusion, climate finance and sustainable food. PHOTO: REUTERS

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    EMERGING markets often face higher costs of capital as investors often view investments in these markets to be of higher risk. But the level of risk may not be as high in reality as it is perceived, according to executives from responsAbility, a Swiss impact investing company that mainly focuses on these markets.

    The risk-return reward in Asia is currently the most attractive as the leverage for each dollar invested is much larger than other economies, said Dr Stephanie Bilo, chief client and investment solutions officer of responsAbility, in an interview with The Business Times.

    She added that they will be launching an Asian climate strategy that not only focuses on solar power as a renewable energy source, but will also look into mobility and energy-efficiency projects.

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