BIMB Investment launches ESG sukuk fund

By KEVIN WONG / Graphic By TMR

BIMB Investment Management Bhd has launched the world’s first ESG (environmental, social and governance) Sukuk Fund and the first Shariah Sukuk Fund in Malaysia.

The fund will integrate the principles of ESG criteria into the investment portfolio strategy to determine the company’s performance in both financial and non-financial performances with respect to sukuk return and credit risk profile.

At the same time, the fund has combined both Shariah principle and ESG principles in its domestic and foreign sukuk issuance selection criteria.

BIMB ESG Sukuk Fund applies Arabesque S-Ray in its ESG screening which systematically combines over 200 ESG metrics with news and data signals from over 50,000 sources across 15 languages.

Also, the sukuk issuances are assessed on their performance on the normative principles of the United Nations Global Compact.

BIMB Investment CEO Najmuddin Mohd Lutfi said the fund offers corporate and retail investors a potential stable annual income stream and an opportunity for capital appreciation over the medium to long term by investing in local and global sukuk.

BIMB ESG Sukuk Fund is offered for subscription in Malaysian ringgit, US dollars and Singapore dollars at 0.25 cents per unit for 21 calendar days during the initial offer period from Aug 1 until Aug 21, 2018.