BIMB Investment sets RM150mil target for new sukuk fund

KUALA LUMPUR: BIMB Investment Management Bhd aims to hit RM150mil within a year for its newly launched BIMB ESG Sukuk Fund, the world’s first environmental, social and governance (ESG) sukuk fund.

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

“Our target is to get both corporations and individuals into this fund at a 50:50 ratio and expect most of the investments to be in ringgit,” he told a press conference after the fund’s launch.

Najmuddin said the fund has a potential annual income distribution of 5%, which provides a stable income stream and capital appreciation.

“We will invest in sukuks both locally and internationally.

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

Najmuddin said the sustainability analysis of each company the fund invested in would be made using UK-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 in the world to assess a company’s ESG score on a daily basis. — Bernama