Impact Investing Evolution: Family Offices in Hong Kong and Singapore Embrace Multi-Asset Approach

Family offices in Hong Kong and Singapore are expanding their impact investing strategies to include a wider range of asset classes, moving beyond just private markets. This shift comes as more environmental and social impact products and opportunities emerge across different investment avenues.

Katy Yung, managing partner at Sustainable Finance Initiative (SFi), highlighted the changing perception of family offices’ impact investing strategies. She noted that overseas families in Europe and the US are already embracing a multi-asset class approach to impact investing, and she hopes to see a similar progression in Asia.

SFi, a non-profit platform promoting impact and sustainable investing among family offices, has been instrumental in driving this evolution. Yung, who was previously with the Hong Kong-based single family office RS Group, emphasized the importance of a full-portfolio approach to impact investing.

In Asia, family offices typically start their impact investing journey with private equity or venture capital funds before expanding into other asset classes. With fund managers in the region increasingly incorporating sustainable development goals into their strategies, more opportunities in public equity, bonds, and private debt have emerged.

Jed Emerson, chief impact officer at AlTi Tiedemann Global, highlighted the diverse investment strategies being employed by Hong Kong families to execute their impact approach. He emphasized the importance of leveraging the expertise of fund managers in alignment with the family’s interests, whether it be climate crisis, sustainable agriculture, or financial inclusion.

While the shift towards impact investing across asset classes presents exciting opportunities, Asian family offices also face challenges such as shorter manager track records and uncertain market environments. Despite these obstacles, the growing interest in impact investing signals a positive trend towards more sustainable and socially responsible investment practices in the region.