New ESG-themed fund launched

New ESG-themed fund launched
-A +A

KUALA LUMPUR (Aug 22): A new ESG-themed (environmental, social and governance) fund has entered the market for investors who want to participate in the sustainable investing trend.

As of Monday (Aug 22), Maybank Asset Management Sdn Bhd launched its MAMG Global Environment Fund, a certified sustainable and responsible investment (SRI) fund that adheres to the SRI guidelines under the Securities Commission Malaysia.

It is a feeder fund from Maybank Asset Management that invests in the BNP Paribas Global Environment Fund (the target fund). The latter, which is a Luxembourg-domiciled global equity fund, invests in companies in areas including energy, sustainable food, water, circular economy, smart environment, clean and efficient transport.

The MAMG Global Environment Fund will invest a minimum of 90% of the fund’s net asset value (NAV) into the target fund, and a maximum of 10% of its NAV into liquid assets. It is suitable for investors who intend to invest for the medium- to long term.

The wholesale fund is eligible to sophisticated investors and is offered in five currency classes: MYR Class, MYR-Hedged Class, USD Class, AUD-Hedged Class and SGD-Hedged Class. It has a minimum investment amount of US$1,000 for all listed currency classes.

Ahmed Muzni Mohamed, CEO of Maybank Asset Management, said the firm has been working with like-minded partners regionally and globally to expand its sustainable investing product offering, since it embarked on its ESG journey in 2020.

“We are pleased to note that our investors are now more aware and have a strong interest in ESG-related funds,” he said.

Guenter Tschiderer, head of intermediary sales of BNP Paribas Asset Management in charge of Hong Kong and South East Asia, added that sustainable thematic investing has been gaining traction among investors. He expects to see more investment opportunities emerge within the environmental space.

“As part of BNP Paribas Asset Management’s forward looking sustainability approach, we continue to remain dedicated to this space. Through the proven experience of our global investment teams and long successful record, we aim to help investors niche out opportunities in a high-growth sector that can be tricky to navigate,” he said.