Bursa Malaysia Launches FTSE4Good Bursa Malaysia Sharia, To Cater To Growing Demand For Shariah-Compliant Investment Tools

Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) and FTSE Russell, a leading global index provider, today launched the FTSE4Good Bursa Malaysia Shariah (“F4GBMS”) index. This new Environmental, Social and Governance (“ESG”)
themed index is designed to track constituents in the FTSE4Good Bursa Malaysia Index (“F4GBM”) that are Shariah-compliant, according to the Securities Commission Malaysia Shariah Advisory Council (SAC) screening methodology.

The composition of the index, which comprises 54 constituents as of June 2021, is reviewed semi-annually in June and December. The F4GBMS index will serve as a basis for fund managers to develop new investment products comprising a portfolio of shariah-compliant equities guided by sustainable investing principles. Such investment solutions include the ESG Mustadamah Fund created by MIDF Asset Management launched in June 2021.

“We are pleased to offer a Shariah version of our respected F4GBM index, which has played an essential role in recognising public listed companies that have taken steps to improve their ESG practices and disclosures. The launch of the F4GBMS index caters to the growing demand for Shariah-compliant investment tools. With the convergence between ESG and Islamic investing, this new index introduces a new dimension for local fund managers by embedding shariah principles into an ESG index,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.

“It also highlights Bursa Malaysia’s commitment in meeting the market’s indexing needs, as we focus to diversify and expand our index offerings to include more thematic and style indices.”

Helena Fung, Head of Sustainable Investment, APAC, FTSE Russell said, “For over two decades, FTSE4Good indexes have provided investors with robust ESG benchmarks covering multiple equity markets including Malaysia.

Widely tracked by ETFs and other passive vehicles, FTSE4Good indexes have a powerful track record of fostering improvements in corporate sustainability performance by increasingly eligibility requirements over time. Working with our partners at Bursa Malaysia, it was important that we add shariah compliant versions of the popular FTSE4Good Bursa Malaysia Index to cater to investor demand for ESG and shariah compliant index solutions.”

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