BIMB INVESTMENT EYES RM100 MLN IN AUM FOR BIMB-ARABESQUE FUND

KUALA LUMPUR, March 22   -- Bank Islam Malaysia Bhd’s (BIMB) wholly-owned subsidiary, BIMB Investment Management Bhd is aiming for RM100 million in asset under management (AUM) in two years for its newly launched BIMB-Arabesque Global Shariah Sustainable Equity Fund (BGSEF).

BIMB Investment chief executive officer Najmuddin Mohd Lutfi said the investment company is currently managing about RM1.7 billion worth of assets and targets to increase it to RM2.5 billion by year-end; with the newly-launched fund expected to contribute about 10 per cent of its total funds in the next 24 months.

“Currently we are managing the largest Shariah environmental, social and governance (ESG) assets of about RM1 billion, of which 65 per cent of the AUM is in equity.

“Obviously, the new fund is also in ESG assets, and hopefully, it can contribute to an additional equity growth for us in the next 24 months,” he said at the virtual launch of BGSEF here today.

He said the new fund is available with a minimum subscription of RM500 via its distributors, which includes Bank Islam.

The fund is offered in five currency classes, including Malaysian Ringgit Class, Malaysian Ringgit-Hedged Class, US Dollar Class, Australian Dollar Class, and Singapore Dollar Class and available for subscription to investors with an initial investment amount of only RM500, RM500 HEDGED, US$500, AU$500, or SG$500, the company said.

Commenting on its foray into the international market, Najmuddin said the bank has already had two funds marketed and distributed in Singapore since two years ago.

“As you can see, we have funds across all asset classes and this is our second global equity fund. We also have Global ESG sukuk fund, Asia Pacific Equities, as well as Malaysian equities.

“We are also offering it in multiple currency classes to attract foreign investors to our funds,” he said.

He said BGSEF leverages the latest advancements in artificial intelligence (AI) technology and forward-looking indicators to complement stock selection and enhance performance.

“The rules-based investment approach systematically rebalances the fund's portfolio weekly. This dynamic feature offers the opportunity to capitalise on the latest market trends and reversals.

“The fund also has stringent risk management measures to protect investors and achieve their long-term financial goals with a fully diversified investment across sectors and region,” he added.

Meanwhile, in his speech before launching the fund, BIMB Investment chairman Mohamed Ridza said COVID-19 has shown acutely how a sustainability crisis could impact economies, businesses and society at large.

“It is an example of what could happen if we were subjected to further sustainability shocks. That doesn't have to be climate change. The pandemic crisis has also shown that companies with strong ESG credentials have performed better this year.

“Many investors had realised that embedding ESG factors in capital markets makes good business sense and leads to more sustainable markets and better societies' outcomes.

“Investors are likely to continue sizing-up companies with the best ESG credentials, as evidence points to them having proven resilience during the pandemic,"  he added

-- BERNAMA