BIMB Investment Management Berhad (BIMB Investment) has announced the BIMB-Arabesque Global Shariah Sustainable Equity Fund (“BGSEF”), an open-ended Shariah-ESG Compliant Global Equity Fund which seeks to achieve long term capital appreciation for its investors.
In partnership with Arabesque Asset Management (Arabesque), the fund was the first to integrate Shariah and ESG into their investment process in Malaysia. It is qualified as a sustainable and responsible investment (SRI) fund under the Securities Commission Malaysia (SC)’s Guidelines on Sustainable and Responsible Investment Funds.
The launch was officiated by BIMB Investment Chairman Mohamed Ridza Mohamed Abdulla, in a virtual ceremony. In attendance were Georg Kell, Chairman of Arabesque Group; Najmuddin Mohd Lutfi, BIMB Investment Chief Executive Officer; and Gabriel Karageorgiou, Partner, Arabesque Asset Management, United Kingdom.
During the virtual launch, Mohamed Ridza highlighted the effect of ESG investing factors on the investment process and decision making. “Covid-19 will leave a significant impact on capital markets for years to come. It made ESG investing even more relevant for today’s investors who are looking to leave a positive impact on the planet at large,” he said.
“The Covid-19 crisis has also shown that companies with strong ESG credentials have performed better this year. Investors are likely to continue sizing-up companies with the best ESG credentials, as evidence points to them having proven resilience during the pandemic,” Mohamed Ridza added.
Arabesque Asset Management (Arabesque), an independent, global asset management firm, will be utilising the Artificial intelligence (AI), Machine Learning (ML) and Big data to perform the portfolio investment that assesses the performance and sustainability of companies worldwide.
“AI technology is forward-looking and can process large quantities of data to construct the most optimal risk-adjusted investment portfolio for investors. With the AI engine, the Fund manages investment risk with discipline and efficiently to potentially deliver investment outperformance while simultaneously removing human biases,” BIMB Investment CEO Najmuddin Mohd Lutfi commented.
The rules-based investment approach will systematically rebalance the Fund’s portfolio weekly. This dynamic feature offers the opportunity to capitalise on the latest market trends and reversals. The Fund also has stringent risk management measures to protect investors and achieve their long-term financial goals with a fully diversified investment across sectors and regions.
“BGSEF integrates ESG considerations in its investment process and employs active screening for Shariah-compliance and alignment with United Nations Global Compact (UNGC) principles in its universe construction process. ESG and Shariah-compliant investing are our core philosophies,” Najmuddin added.
The Fund is made available for any investors who are looking to expand their global market outreach.
BGSEF is currently being offered in multiple class namely, Malaysian Ringgit Class, Malaysian Ringgit-Hedged Class, US Dollar Class, Australian Dollar Class, and Singapore Dollar Class. Available for subscription to investors with an initial investment amount of only RM500, RM500 HEDGED, USD500, AUD500 or SGD500.