‘Malaysia is evolving into a sustainable and responsible investment hub, supported by its prominent global presence in Islamic finances.’

NIK MOHD HASYUDEEN YUSOFF, BIMB Investment Management Bhd chairman

KUALA LUMPUR: BIMB Investment Management Bhd (BIMB Investment) aims to achieve RM150 million in fund size for its newlylaunched BIMB ESG Sukuk Fund, the world’s first environmental, social and governance (ESG) sukuk fund.

Chief executive officer Najmuddin Mohd Lutfi said the fund was the first to offer subscriptions in ringgit, US dollar and Singapore dollar.

“Our target is to get both corporations and individuals for this fund at a 50:50 ratio and we expect most of the investments to be in ringgit,” he said after the fund’s launch, here, yesterday.

Najmuddin said the fund had a potential annual income distribution of five per cent with a stable income stream and capital appreciation.

“We will invest in sukuk both locally and internationally.

“Investments will be rated at least ‘A3’ or ‘P1’ by RAM Ratings for ringgit-denominated sukuk and ‘BBB-’ or ‘A3’ by Standard and Poor’s or equivalent ratings by local agencies for non-ringgit denominated sukuk,” he said.

Najmuddin said the sustainability analysis of each company the fund invests in would be made using United Kingdom-based Arabesque Asset Management Holding Ltd’s proprietary S-ray machine learning and big data technology screening system.

The system is the first of its kind to assess a company’s ESG score on a daily basis.

“It will analyse the performance of companies according to the United Nations Global Compact normative principles of human rights, labour rights, and environment and anti-corruption practices.

“The robust and deep ESG analysis provides insights and better understanding of a company’s management quality and its positioning for long-term success,” he said.

Meanwhile, chairman Nik Mohd Hasyudeen Yusoff said Malaysia was leading in the number and value of sukuk issued.

“Malaysia is evolving into a sustainable and responsible investment hub, supported by its prominent global presence in Islamic finances,” he added.

Malaysia increased its sukuk issuance to US$19.4 billion as in June this year.

PIC BY SALHANI IBRAHIM (From left) BIMB Investment Management Bhd chief executive officer (CEO) Najmuddin Mohd Lutfi, BIMB Investment Management Bhd chairman Nik Mohd Hasyudeen Yusoff, Securities Commission deputy chief executive Datuk Zainal Izlan Zainal Abidin, BIMB Holdings Bhd chairman Tan Sri Ambrin Buang, Bank Islam Malaysia Bhd chairman Datuk Zamani Abdul Ghani, its acting CEO Mohd Muazzam Mohamed and Arabesque Asset Management United Kingdom partner Gabriel Karageorgiou at the launch of the BIMB ESG Sukuk Fund yesterday.