AmInvest, the funds management business under AmInvestment Bank, has announced the launch of the first fund in its sustainable series line-up, namely the Sustainable Series-Positive Change Fund. The series aims to cater to the growing interest of investors seeking Environmental, Social and Governance (ESG) as well as sustainable and impact investment themes.
Investors of the Fund will be able to gain exposure to high quality global companies addressing society’s challenges that are poised to prosper in the long-term as they possess strong fundamentals for future growth. These companies are likely to see higher revenue growth, cash flow and capital allocation from rising demands for their products and services.
“The fund is in line with AmBank Group’s commitment to sustainability in the area of positive social impact practices across our businesses,” said Dato’ Sulaiman Mohd Tahir, group chief executive officer of AmBank Group.
“We believe companies which set out to make positive changes enjoy sustainable competitive advantages and thus, can potentially deliver attractive returns over the long term. In other words, companies that have purpose with intent to do good complement profits for businesses in the long run.”
The fund aims to provide long-term capital growth by investing predominantly in Baillie Gifford Worldwide Positive Change Fund. The target fund invests in global equities of companies whose products, behaviour and services make a positive social or environmental impact, and its investment portfolio focuses on companies addressing critical challenges within the four positive impact themes, namely social inclusion and education, environment and resource needs, healthcare and quality of life, and base of the pyramid.
“The unique investment methodology of the target fund ensures that the stock selection is vetted for financial potential before positive change criteria is assessed. By doing so, the target fund’s portfolio is poised to potentially meet investor’s expectations on financial performance, while providing a positive impact to the world. Many sustainable funds in the market use simple negative screens, which first narrow the investment universe by removing tobacco, oil and gas or other sin stocks before an investment case could be put forward.
The target fund’s three-factor impact analysis consists of intent, including whether ownership supports this mission; business practices, including a full ESG assessment; and product impact, which assesses whether the product or service addresses a societal or environmental challenge,” said Goh Wee Peng, chief executive officer of AmInvest.
The fund is suitable for sophisticated investors seeking potential capital appreciation over a long-term investment horizon and participation in the global equity market. The US dollar (USD) is the base currency of the fund, and it is available for subscription in both USD and ringgit Malaysia (RM) currency classes, available at an initial offer price of USD1 or RM1 per unit respectively during the initial offer period which expires on June 25, 2021.