AmInvest has introduced its second sustainable fund – the Sustainable Series – Climate Tech Fund. It offers investors potential long-term capital growth by investing into global companies with solutions that mitigate climate change and its effects or help to adapt to it, via the DWS Invest ESG Climate Tech as a target fund. The fund is a qualified Sustainable and Responsible Investment (SRI) fund.
The target fund focuses on climate technology related companies that are likely to profit from rising climate commitments, with the four areas that it currently invests in being power generation, transport, real estate and agriculture sectors.
Power generation, transport and real estate areas encompass companies which are involved in mitigating climate change implications by moving away from fossil fuels, such as harnessing solar and wind technology, hybrid and electrical vehicles, and insulation materials. The agriculture sector involves companies that are providing solutions to adapt to the consequences of climate change through developments and research breakthroughs in areas like irrigation systems and livestock nutrition.
These four sectors traditionally have contributed to the highest greenhouse emissions, and companies that are involved in their solutions are expected to see annual double-digit Earnings Per Share (EPS) growth until 2023. For example, green transport has forecasted its EPS to grow annually by 36%.
Commenting on the launch, Dato’ Sulaiman Mohd Tahir, the group CEO of AmBank Group, said, “In line with AmBank Group’s commitment to sustainability across our businesses, this new offering is a qualified SRI fund.”
“This is the second fund in our “Sustainable Series” as we have recently launched our Sustainable Series-Positive Change Fund. The fund targets investors who view climate change as a key factor for future investments and expect rising opportunities that complement both returns and sustainability objectives.”
Goh Wee Peng, the chief executive of AmInvest, said, “Through the fund, investors can now capitalise on a diversified portfolio of global ESG-compliant companies that have optimum risk-return trade-offs. Since its inception in October 2018, the target fund has delivered returns of around 87.3%.”
“AmInvest is delighted to partner with DWS, which has an impressive 65-year heritage of funds management experience with a head start in climate technology investment.”
The fund’s base currency is the United States Dollar (USD) and is being offered for subscription to sophisticated investors in USD and Ringgit Malaysia (RM) and in RM-Hedged classes at an initial offer price of USD1 and RM1 per unit respectively, during the initial offer period until October 18, 2021.