AmInvest Introduces Inaugural Fund in its Sustainable Series
AmInvest, which is the funds management business under AmInvestment Bank, has announced the launch of the first fund in its sustainable series line-up, namely Sustainable Series-Positive Change Fund (“Fund”). This series is introduced 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.1
Commenting on the launch, Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer of AmBank Group, said, “The fund is in line with AmBank Group’s commitment to sustainability in the area of positive social impact practices across our businesses. The impact of the Covid-19 pandemic has accelerated the importance of finding solutions for the world, which in turn, will be good for businesses such as companies like Moderna. 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.”
“In line with our positive social impact pillar which focuses on environmentally and socially responsible investments, AmInvest is now a signatory to the Malaysian Code for Institutional Investors.2 This Malaysian industry-led voluntary code provides guidance on effective exercise of stewardship responsibilities towards the delivery of sustainable long-term value,” he added.
The Fund aims to provide long-term capital growth by investing predominantly in Baillie Gifford Worldwide Positive Change Fund (“Target Fund”). The Target Fund invests in global equities of companies whose products, behaviour and services make a positive social or environmental impact. The Target Fund’s investment portfolio will focus 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 Ms. 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 Fund’s base currency is United States Dollar (“USD”) and the Fund is offered for subscription in both USD and Ringgit Malaysia-Hedged (“RM”) currency classes at an initial offer price of USD1 or RM1 per unit respectively during the initial offer period which expires on 25 June 2021. The Fund is distributed by AmBank branches and AmPrivate Banking.
For more details on the Fund’s features and risks, please refer to the AmInvest Information Memorandum for Sustainable Series-Positive Change Fund dated 27 May 2021 via www.aminvest.com.
Sources and Notes:
1 Baillie Gifford, Bloomberg, StatPro, MSCI. As at 31 March 2021, US Dollars. Based on representative Positive Change Portfolio managed by Baillie Gifford Investment Management (Europe) Limited. Revenue and cash from operations based on last fully reported year compared to five years ago. Weighted average. Capital allocation analysis excludes financials.
2 Malaysian Code for Institutional Investors accessible via www.sc.com.my.