Matthews Emerging Markets Sustainable Future Active ETF (EMSF) is an actively managed exchange-traded fund that seeks long-term capital appreciation by investing primarily in equity securities of companies domiciled or conducting significant business in emerging market countries, with a focus on sustainable future themes. The fund's core offerings include exposure to companies demonstrating strong environmental, social, and governance (ESG) practices; investments in sectors such as renewable energy, clean technology, sustainable agriculture, and resource efficiency; and a portfolio constructed through bottom-up fundamental analysis emphasizing companies poised to benefit from global sustainability trends. EMSF targets institutional and retail investors seeking emerging markets equity with an ESG overlay, operating globally across emerging market regions including Asia, Latin America, Africa, and Eastern Europe.
Launched in 2023 and domiciled in the United States, the ETF is issued and managed by Matthews Asia Innovators Fund (a series of Matthews International Funds Trust), with investment advisory services provided by Matthews Asia Limited, headquartered in San Francisco, California. The fund employs a high-conviction, active strategy led by portfolio managers who integrate proprietary sustainability research with traditional financial metrics to select 30-50 holdings, maintaining a typical market capitalization range from small-cap to large-cap companies.
In the past year, EMSF has undergone a significant strategic evolution, including the announcement in late 2024 of enhanced sustainability screening methodologies to incorporate forward-looking climate transition metrics and biodiversity impact assessments; a key partnership with leading ESG data providers to bolster real-time analytics; and expansion of its investment universe to include frontier markets with high sustainable growth potential, reflecting Matthews' commitment to adaptive active management amid shifting global regulations and investor demands for verifiable impact investing.