KUALA LUMPUR: Digital investment management platform MYTHEO has launched the country’s first fully AI-based environment, social and corporate governance (ESG)-themed portfolio, called MYTHEO Global ESG.
In a statement yesterday, product owner GAX MD Sdn Bhd said the portfolio will invest primarily in ESG-related equity exchange traded funds (ETFs), particularly those that have an investment policy that takes into consideration ESG issues.
This includes ETFs that have a balance of executives and directors with regards to gender and racial diversity, strict anti-corruption policies and strong internal controls in place.
“This will allow investors to align their financial goals with the values that they strongly believe in as they start to look beyond balance sheets and profit or loss statements to identify investments that are responsible and sustainable,” it said.
The Global Sustainable Investment Alliance, in its latest Global Sustainable Investment Review biennial report, revealed an increase of 15% in the assets under management of sustainable investments from US$30.68 trillion (RM127.6 trillion) in 2018 to US$35.50 trillion (RM147.7 trillion) in 2020.
It also projected that ESG assets could exceed US$50 trillion (RM209 trillion) by 2025.
China and countries in the Asia-Pacific region are expected to contribute double digit compounded annual growth to responsible investment markets in the near future.
According to GAX chief executive officer and managing director Ronnie Tan, the rollout of the MYTHEO Global ESG was timely as investments in the ESG space is gaining momentum.
This is at a time when the Covid-19 pandemic laid bare social and economic issues, which further strengthened the need for more sustainability practices and good governance.
“Through MYTHEO Global ESG, we want to provide a mechanism to contribute to the realisation of a sustainable society through digital investment management for investors who wish for a healthier future environment, a just and equitable society, sustainable corporate practices, and good governance,” he said.
Quoting figures from Refinitiv Lipper, he said ESG-related funds delivered an average higher overall outperformance of 3.78% as compared to 2.15% for conventional funds for the year 2020.
The MYTHEO Global ESG portfolio currently has 11 ETFs in its investing universe with an exposure of 49.95% in the US and 50.05% globally.