KUALA LUMPUR: MIDF Amanah Asset Management Bhd (MIDF Amanah AM) launched its new ESG Mustadamah Fund (MAEM) on Friday which integrates environmental, social and governance considerations (ESG).
In a statement on Friday, it said the fund is a ready-made investment solution for the local equity market where the ESG is based on the FTSE4Good Bursa Malaysia (F4GBM) Index’s constituent Shariah companies.
MIDF AM said this strategy makes it easier for them to invest in a more sustainable future for Malaysia.
Mustadamah, it said, loosely translates to mean the ability to sustain and this new fund is the group’s first sustainable and responsible investment fund which targets medium to long-term sustainable capital appreciation.
The fund investing in a portfolio of Shariah compliant equities locally that are also guided by the principles of sustainable investing.
MIDF Amanah AM CEO Mohamed Sany Mohamed Zainudin said the launch of the ESG Mustadamah Fund “reflects the increasing appetite from clients to invest their money in a more sustainable future for Malaysia “.
This strategy will enable clients to make more impactful, relevant and sustainable choices through its new investment solutions.
“We hope that this fund will address investors’ needs and priorities of more than just financial gains, ” he said
ESG-oriented investing has increasingly gained attention over the past few years.
This is 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 digitalisation into mainstream investment policies.