UOB Asset Management launches new fund

KUALA LUMPUR: UOB Asset Management (Malaysia) Bhd (UOBAM Malaysia) has today launched the United-i Asia ESG Income Fund.

The fund seeks to provide retail investors with income dividends and capital appreciation over the medium to long term through sustainable investments.

UOBAM Malaysia said the fund invested in a diversified portfolio of equities and debt instruments issued by companies across Asia (excluding Japan) region that comply with Shariah principles and adopt environmental, social and governance considerations into their business models and practices.

As both Shariah principles and sustainable investing promote governance stewardship and value creation, combining these approaches would create a stronger portfolio for investors' long-term benefit.

"Shariah-based investing prohibits interest, security lending and short- selling. It also incorporates negative screening to exclude sectors such as tobacco, alcohol and breweries, weapons and armaments, as well as other non-halal products.

"This will be complemented by sustainable investing that uses positive screening as a means of

selecting the best performing companies that offer environmentally-friendly products and

services, or have socially-responsible business practices," UOBAM Malaysia chief executive officer Lim Suet Ling said in a statement.

She said the fund's launch was timely as the Covid-19 pandemic had given everyone a good reason to reassess the importance of being sustainable in what they do and how they invest.