The latest news in investment offerings, financial products and other services relevant to wealth advisors and their clients.

Octopus Energy
As the energy transition accelerates, Octopus Energy is helping to speed up the transition in Asia. It is launching a new fund to turbocharge low-cost, homegrown renewables, starting with a first investment in the Philippines.

The Octopus Asia Electrification Fund (OAEF) will invest in local green energy developers to help them build out large numbers of clean energy projects. It is managed by Octopus’ generation arm which has over $11 billion renewables projects worldwide, the firm said in a statement.

The fund is also an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR), which means that making a positive impact is at its core.

Octopus said it aims to catalyse $600 million from institutional investors to get these projects built, helping to cut reliance on expensive fossil fuels and protect customers from energy price shocks. The fund is already backed by $50 million from Japanese investors. 

Announced at COP31 in Antalya, Turkey, taking place from 9 to 20 November, the fund's first investment is in Octali Energy Development, a solar and storage developer based in Manila, marking Octopus' first move into the Philippines. See more here about COP31 in which Jean-Philippe Desmartin at Edmond de Rothschild Asset Management outlines his optimism over progress being made on investment in the energy transition.

Working with Octali’s team on the ground, Octopus will help develop their targeted 450 MW of solar and 350 MWh of battery storage. These projects could generate enough clean electricity to power more than 300,000 Philippine homes every year by 2030.

This comes as polluting coal still makes up more than 60 per cent of the country’s electricity, while 98 per cent of its oil imports are from the Middle East. The Iran war exposed many South East Asian countries’ reliance on imported fossil fuels. With the region’s energy demand soaring, renewables could help meet this demand and boost energy security.

As well as the Philippines, the fund will target opportunities in markets including Japan, South Korea, Singapore, Indonesia, Thailand, Malaysia and Vietnam. Alongside solar, onshore wind and storage, it will also explore microgrids, electric vehicle charging and other energy transition technology.

The launch is the latest step in Octopus Energy Generation's wider Asia strategy with its Singapore-based team. It already manages around 2 GW of clean energy projects in development in Asia. These include deals with solar developers Yotsuya Energy in Japan and Skygreen Energy in South Korea, and offshore wind developer Deep Wind Offshore with projects in South Korea.

“Asia is at the heart of the global energy transition. Demand for electricity is soaring, and countries across the region want cheaper, homegrown power so families and businesses aren't at the mercy of volatile fossil fuel prices,” Zoisa North-Bond, CEO of Octopus Energy Generation, said. “Our first investment in the Philippines is an exciting step. We’re now combining our experience in renewable energy across the region with capital to help ambitious local developers scale, bring more clean power to consumers, and help build Asia’s clean energy future.”

“It’s fantastic to see British companies like Octopus leading the way around the world, unlocking hundreds of millions in investment in clean energy and creating new opportunities in fast-growing markets across Asia,” reindustrialisation minister Blair McDougall added.

Amundi
Amundi, a European asset manager, has announced its entry into Taiwan's exchange-traded fund (ETF) market with the launch of its first ETF listed in Taiwan, the Amundi 20-35 Year AAA-A USD Corporate Bond ETF.

This launch reflects Amundi’s ambition to grow in Asia by expanding its offering to meet the evolving needs of investors across the region. Taiwan is one of Asia’s most dynamic ETF markets, supported by a deep local savings pool and a robust institutional ecosystem, growing demand for investment solutions, and increasing interest in ETF-based portfolio construction, the firm said in a statement.

“Our entry into Taiwan’s ETF market marks an important milestone in our local expansion,” Johnny Wong, CEO of Amundi Taiwan, said. “We have served retail and institutional clients in Taiwan for more than two decades and see this launch as a natural step in the development of our business locally.”

“The growth of the ETF market in Taiwan is a significant development, and we are pleased to be part of this momentum. In the coming months, we will continue to expand our range of ETF listed in Taiwan and in Asia,” Matthieu Guignard, head of ETF International for Amundi, added.

A solution balancing income potential and diversification through selected maturities and high-rated bonds
This launch comes at a time when investors are paying close attention to fixed income as a source of yield and portfolio resilience. Long-duration, high-quality corporate bonds can offer benefits across market cycles. In particular, in periods of slowing growth and increased volatility, they may help strengthen portfolio quality while maintaining exposure to income opportunities.

The fund invests in dollar-denominated corporate bonds with maturities of 20 to 35 years and credit ratings ranging from AAA to A, focusing on high-quality issuers in developed markets.

The Amundi 20-35 Year AAA-A USD Corporate Bond ETF is scheduled for its offering period from 23 to 27 November.

A number of firms have been continuing their expansion into ETFs, for example, Schroders, Pictet Asset Management, Invesco, and Franklin Templeton. See here.