KUALA LUMPUR: RHB Islamic International Asset Management Bhd (RHBIIAM) launched its RHB i-Global Sustainable Disruptors Fund and targets to have RM100mil in assets under management within the first six months.
It said on Thursday the Shariah compliant equities fund is its first sustainable and responsible investment fund subjected to environmental, social and governance (ESG) criteria and methodology.
The fund’s portfolio composition includes credible companies that seek opportunities in large addressable markets, enables new technology, and have potential for rapid adoption and scalability, amongst other criteria.
The fund’s objective is to provide investors with capital appreciation over the medium to long-term. It allows customers to invest in any country or region, including countries in emerging markets.
This enables adoption of other investment strategies such as sector rotations and the ability to determine stock positions based on highest conviction investment ideas, within a risk-controlled framework.
RHBIIAM CEO Farid Kamarudin said as the sole provider of this type of fund, he expected it to achieve RM100mil in asset under management within the first six months.
He added investors were increasingly seeking investment opportunities in companies with strong social and environmental values.
“We believe ESG factors will increasingly determine a company’s ability to operate successfully and to generate sustainable revenue.
“As such, the integration of ESG factors is critical and should be an important component of the investment process as it will assist in identifying companies that are fundamentally sound, ” he said.
Farid said the fund matches the needs of its customers and supports current market themes, which allows it to play a more active role in promoting sustainable investment and responsible financing to its investors.
RHBIIAM appointed JPMorgan Asset Management (Singapore) Ltd as its investment adviser.
“In addition to the due diligence exercise as well as the fundamental and financial analysis, J.P. Morgan will also look at ESG factors when evaluating the companies. This collaboration further strengthens our capabilities for close monitoring of companies and investments, which in turn, provides more valuable insights to our investors, ” Farid added.
Supreet Bhan, executive director, head of South East Asia funds for JPMorgan Asset Management, said the strategy seeks to identify investments that will benefit from key long-term structural growth themes including digitalisation, the energy revolution and healthcare innovation.
“It leverages the insights of JPMorgan Asset Management’s 370+ equity professionals and employs an ESG integrated, unconstrained approach towards identifying these investment opportunities, ” he said
RHBIIAM is a subsidiary of RHB Asset Management Bhd (RHBAM). RHBAM had previously launched its first ESG fund in 2017, “RHB SRI-KEHATI Index Fund” in Indonesia.