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Asian investment specialist Lloyd George Management is hoping to get in on the ground floor of the "greening of China" with the launch of the LG Asian Green fund.

The new Dublin-based Ucits III fund, which is aimed at high net worth investors, was launched last week and hopes to capitalise on growing community awareness and government moves to take a more active stance on environmental issues.

It will invest in companies throughout the Asia Pacific region that are "striving for more efficient use of the earth’s resources".

Investment will be split evenly among green energy, green technology and manufacturing and green practices.

Robert Lloyd George, chief executive, said: "Five years ago, we asked our portfolio managers what they thought China needed. One of the clear answers was that natural resources would be a prime beneficiary."

At that time, he said, the firm had created the $237m (£119m) Asian Natural Resources fund. However, now a new story was emerging.

"We believe the greening of China and our LG Asian Green fund represents the next major theme in Asia," said Mr Lloyd George.

The fund is run by Hong-Kong-based manager MF Tang who also runs the group's Natural Resources fund. He will be supported by fellow manager Chris Tang.

The fund will comprise a relatively concentrated portfolio of 40-60 stocks. It was seeded with capital of $35m and has a minimum investment of $20,000.

A spokeswoman for the group said the burgeoning move in China towards becoming more environmentally concerned was being underestimated by foreign investors, and over the coming years there would be major investment in cleaning up the industrial manufacturing areas.

Mr Tang will look for firms able to adapt to the increasing need for environmental sustainability, particularly those able to cope with additional costs "that will be unavoidable", such as carbon.

Brand leaders and companies making use of new environmental technology will also be in the portfolio's line up.

There are already a number of alternative energy opportunities throughout Asia, such as geothermal power in the Philippines, wind turbine manufacturers in India and solar power module makers in China, which the managers will also focus on.

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