Maybank AM launches 1st sustainable technology fund

by ASILA JALIL / pic by TMR FILE

MAYBANK Asset Management Sdn Bhd (Maybank AM) has expanded its environmental, social and governance (ESG) product offerings with the launch of the Maybank Global Sustainable Technology Fund.

The bank’s first sustainable technology fund aims to achieve capital appreciation by investing primarily in a portfolio of global technology-related equities with Wellington Management Singapore Pte Ltd as its fund investment advisor.

“To achieve its investment objective, the fund will invest a minimum of 80% of the fund’s net asset value (NAV) into global equities and equity-related securities, and a maximum of 20% of the fund’s NAV into collective investment schemes and/or liquid assets,” it said in a statement yesterday.

The base currency of the sustainable technology fund is in US dollar and is offered in three currency classes, namely US dollar, ringgit and ringgit-hedged. The minimum investment amount is RM1,000 for ringgit and ringgit-hedged classes, and US$1,000 (RM4,050) for US dollar class.

The fund will also participate in direct or indirect investments through collective investment schemes, such as exchange-traded funds in equities and equity-related securities, including but not limited to warrants, American depositary receipts and global depositary receipts of global tech companies.

It said ESG considerations will play a major role in how Maybank AM and the investment advisor will evaluate investments made by the fund.

As the fund is also a qualified sustainable and responsible investment (SRI) fund, the investments will be subject to ESG interrogation methodologies.

Maybank AM CEO Ahmad Najib Nazlan (picture) said the pandemic has impacted businesses which has led to the development of new technological solutions.

“These breakthroughs will transform society and sectors such as businesses, manufacturing and production, science, medicine through automation, engineering, Internet of Things, artificial intelligence machine learning and more.

“It is a very exciting period in the tech sector, and our new fund offers savvy investors the platform to mine opportunities by investing in a suite of sustainable tech companies,” he said.

Leveraging Wellington Management’s capabilities, the group said it enables fund managers to cover a wide range of investment portfolios within the tech segment of information technology services and payment processors, tech hardware and equipment, semiconductors and semiconductors equipment, Internet and gaming, and software.

The tech sector is expected to experience rapid growth in the next coming years after it outperformed market expectations last year amid challenging global markets.

“The fund is suitable for investors who have a long-term investment horizon, as well as are seeking capital growth and willing to tolerate the risks associated with investing in a portfolio of global equities in the technology sector.