PETALING JAYA: Maybank Asset Management Sdn Bhd (MAM Malaysia) has launched the Maybank Global Sustainable Equity-I Fund (MGSEIF), a global equity fund that adopts environmental, social and governance (ESG) factors to enhance long terms returns.
The fund was launched by Maybank Asset Management Group (MAMG) chairman Dr Hasnita Hashim, Maybank Global Banking group CEO Datuk Muzaffar Hisham and MAMG CEO Badrul Hisyam Abu Bakar at the Securities Industry Development Corp’s Sustainable and Responsible Invesment Virtual Conference 2020.
As Maybank’s first actively managed syariah-compliant ESG fund, its main feature is investing into high conviction syariah ESG companies across global markets with Schroders Investment Management (Singapore) Ltd as the investment adviser of the fund.
In seeking to achieve its investment objective, the fund invests primarily in a portfolio of securities that follow syariah principles as well as principles of sustainable investing. Hence, the fund will invest a minimum of 80% in syariah-compliant equities as well as syariah-compliant related securities, and up to 20% in Islamic liquid assets.
MGSEIF is unique as it invests in a global sustainable equity model by integrating ESG into its investment decision-making process. Sustainable global companies have outperformed at lower volatility in the past 10 years and as of Dec 31, 2018, sustainable investments globally have grown by 300% to US$30.7 billion in just seven years.
The fund provides opportunities for investors who are looking to potentially achieve income and capital growth by investing primarily in a portfolio of syariah ESG equities. It is designed for investors who have an interest to invest in a diversified portfolio of global syariah-compliant equities which complies with the fund’s sustainability criteria, and have a long term investment horizon.
MAM Malaysia CEO Ahmad Najib Nazlan said as global citizens, sustainable business and investment is a fundamental part of its corporate responsibility for today and future generations.
“Our investors are environmentally aware and take business sustainability seriously. Thus, they are more discerning and would want to invest in companies that have embedded ESG into their way of doing business and comply with sustainability standards and practices.
“There is never a better time to launch the fund as ESG is now more important than ever in light of the Covid-19 pandemic. The current situation has hastened the adoption of ESG into the mainstream investment policies, thus adding to numerous statistics demonstrating that investors agree that ESG must be taken seriously.”
Najib Nazlan hoped that MGSIEF will be able to meet the needs of investors who are seeking for syariah sustainable investment options that can generate returns with an annual income on their investments.
“We believe that companies that incorporate ESG factors are likely to be more profitable in the long term and companies that prioritise ESG factors tend to exhibit lower volatility. ESG-ranked stocks have delivered a relative outperformance versus the broader US market during the recent sell-off caused by the pandemic and earnings of ESG stocks have become more resilient during this period.
“We are excited to be able to offer our first sustainable investing fund which combines our investment expertise with Schroders’ ESG investment capabilities and track record. Schroders will also provide investment advice to MAM Malaysia on global ESG equity stock selection relating to the fund.”
Globally, the Schroders group has been leading the charge on sustainability investments, having had a dedicated sustainability team for over 20 years. Today, the team has 22 members, and Schroders has maintained an A+ rating for overall strategy and governance in relation to sustainable investment for the fifth year running by the Principles for Responsible Investment, an influential United Nations-backed global investor initiative.
The fund is offered in three currency classes, namely US dollar class, ringgit class and ringgit-hedged class. Investors can purchase units in the fund at a minimum initial investment of RM1,000 or US$1,000 and make additional investments at a minimum of RM100 or US$100.
source https://www.thesundaily.my/business/maybank-asset-management-launches-global-equity-fund-GB3641228
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