Apollo Multi-Asset Management is holding around 4 per cent in the Impax Asian environmental markets investment trust as it believes the environment theme in Asia is set to grow.
The Impax trust invests in Asia-Pacific companies that help provide cleaner and more efficient services such as energy, water and waste management within the region and worldwide. It is managed by Bruce Jenkyn-Jones of Impax and David Li of Hong Kong-based fund manager Ajia Partners, a company Impax has worked with on other funds since 2007.
Apollo says much of the growth in the world is from Asia, but that it is short of energy. It says demand for non-fossil fuel is coming from India and China, which do not want to be beholden to regions like the Middle East by relying on oil. As a result, renewable energy sources such as wind, wave and solar power are providing strong investment opportunities.
Water treatment and pollution control are other themes in which the trust will invest, as it is important that waste is dealt with in a way that does not cause pollution.
Apollo partner and fund manager Steve Brann says: “The environment theme in Asia is part of a global growth story. The Impax fund is not necessarily green by nature but the green theme is going to generate substantial returns for the fund. It is good for the world, for profits and performance.”