BIMB Investment targets RM100m for Shariah equity fund

 KUALA LUMPUR: BIMB Investment Management Bhd (BIMB Investment) is targeting RM100 million in subscription for its newly launched Shariah equity fund, the BIMB-Arabesque ValueCAP Malaysia Shariah-ESG Equity Fund, within a year from its launch. 

The fund, a result of a strategic collaboration between Arabesque Asset Management Holding Ltd (Arabesque) and ValueCAP Sdn Bhd (ValueCAP), will be invested in 100 local shariah compliant companies listed on Bursa Malaysia Bhd. 

BIMB Investment chief executive officer Najmuddin Mohd Lutfi said the investments would be based on selected companies that has strong financial standing and potential for growth.

 "As of now, ValueCAP has invested some RM50 million. We are hoping more investors would join the fund as it is suitable for corporate investors, the government, universities and Takaful providers,” he said at the launch.  

He said companies who are interested to increase their social responsible investment (SRI) and Environmental, Social and Governance (ESG) portfolios should also tap into this fund.

BIMB Investment chairman Nik Mohd Hasyudeen Yusoff said Malaysia currently has the second largest ESG market in Asia, after Japan.

Malaysia also holds 29 per cent, or US$56 billion of the global Islamic asset management segment.

“Given the rapid growth of the SRI segment worldwide, Malaysia therefore has the potential and capabilities to lead within this segment given our already premier standing currently,” he said.