KUALA LUMPUR: RHB Asset Management Bhd (RAMB) has partnered with JP Morgan Asset Management (JPAM) to launch the RHB Climate Change Solutions Fund focuses on environmental, social, and governance (ESG) through a thematic approach.
The fund taps into the US$35.3 trillion global sustainable asset market, providing investors in Malaysia easy access to global long-term sustainability-themed investments focusing on sustainable transport, construction, food and water, recycling and re-use, as well as renewable energy.
RAMB managing director Eliza Ong said funds with the attributes' low carbon/ fossil fuel free' and 'environmental' had inflows of US$28.33 billion and US$13.53 billion, respectively, from January through October 2021.
"The RHB Climate Change Solutions Fund aims to leverage JPMA's in-depth expertise on climate change, allowing us to expand our sustainable product offerings further while amplifying our efforts in promoting sustainable investing.
"This latest addition to our suite of successful Sustainable and Responsible Investment (SRI) fund offerings is targeted to achieve RM100 million asset under management (AUM) within six months from its launch," she said in a statement today.
The RHB Climate Change Solutions Fund is designed with diversified exposure to climate change solutions and aims to provide long-term capital growth by investing in US Dollar-denominated shares of the JPM Climate Change Solutions Fund (JCCS Fund).
In turn, the JCCS Fund is a high- conviction and unconstrained portfolio, investing in forward-thinking companies developing and scaling solutions to address climate change.
JSSC Fund's investment strategy combines artificial intelligence and human insight to invest in companies across sectors that are developing innovative solutions to address the global challenge of climate change.
"We are delighted to partner with RAMB to extend our sustainable investment capabilities and thematic offering to investors in Malaysia.
We believe strategies such as this help investors intelligently capture innovative investment opportunities and technologies facilitating Climate Change Solutions," JPAM chief executive officer of Singapore and Southeast Asia Sherene Ban said.
RHB established the RHB Sustainability Framework in 2019, which outlines and embeds sustainable practices into its business and operations in line with its sustainability vision of Building a Sustainable Future.
ESG investing is echoed under Pillar 1 of the RHB Sustainability Framework, with Sustainable and Responsible Banking as its key focus area.
As of 2021, RAMB launched three ESG SRI-qualified funds - RHB i-Global Sustainable Disruptors Fund, a Shariah-compliant fund, RHB Global Impact Fund and RHB Sustainable Global Thematic Fund with a combined AUM of more than RM800 million.
The three ESG funds provide avenues for investors to deploy their capital in sustainable investments, hence generating positive impact across the national and global landscape.