KUALA LUMPUR: MIDF Amanah Asset Management Bhd (MIDF Asset Management) today launched ESG Mustadamah Fund (MAEM), an investment solution is aimed at the local equity market.
The fund integrates with environmental, social and governance considerations (ESG) based on the FTSE4Good Bursa Malaysia (F4GBM) Index's constituent Shariah companies.
The fund makes it easier for clients and investors to invest in a more sustainable future for Malaysia.
This new fund is the company's first sustainable and responsible investment fund which aims to achieve medium to long-term sustainable capital appreciation by investing in a portfolio of shariah-compliant equities locally that are also guided by the principles of sustainable investing.
"The launch of the ESG Mustadamah Fund reflects the increasing appetite from clients to invest their money in a more sustainable future for Malaysia and it will enable our clients to make more impactful, relevant and sustainable choices through our new investment
solutions.
"We hope that this fund will address investors' needs and priorities of more than
just financial gains," MIDF Amanah Asset Management chief executive officer Mohamed Sany Mohamed Zainudin said in a statement.
ESG-oriented investing has increasingly gained attention over the past few years, driven
by heightened social, governmental and consumer attention on the broader impact of
companies as well as by investors and management teams who realise that a strong ESG
proposition can safeguard a company's long-term success.
The Covid-19 pandemic has also hastened the adoption of ESG, including green financing and digitalization into mainstream investment policies.
Referred to as the 21st century's first sustainability crisis, it has renewed the focus on climate change, among others, and has shifted the focus of decision-makers to prioritize a more sustainable approach to investment.