United Overseas Bank Asset Management (UOBAM) Malaysia has unveiled an ESG income fund targeting retail investors.
The United-I Asia ESG Income Fund will invest in equities and debt instruments issued by Asian companies, excluding Japan, that comply with Sharia principles and adopt ESG considerations.
According to UOBAM Malaysia’s chief executive, Lim Suet Ling, the Covid-19 pandemic has raised the interest in sustainable funds as investors have reassessed the importance of being sustainable in what they do and how they invest.
“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,” said Ling.
“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.”
There has also been a regulatory push in the country. In 2019, the Securities Commission Malaysia published its five-year roadmap to become a regional leader in sustainable and responsible investment.
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