BANK Islam Malaysia Bhd’s unit, BIMB Investment Management Bhd, has signed the United Nations-supported Principles for Responsible Investment (UNPRI) to incorporate environmental, social and governance (ESG) factors into investment decisions.
In a statement yesterday, BIMB Investment said it is the only bank-backed Islamic asset manager in Malaysia and South-East Asia to be a signatory to the responsible investment initiative, together with 23 other leading investment managers in the region.
BIMB Investment CEO Najmuddin Mohd Lutfi (picture) said the company has integrated more than 250 ESG metrics into its investment processes since 2015 for better investment decisions.
“ESG offers valuable non-financial information that reflects on companies’ management quality, which has a strong correlation with sustainable financial performance over time, like profitability and stock performance.
“Investors who are keen on sustainable investing may choose from our wide-ranging Shariah ESG investment products from a minimum of RM500,” he added.
Najmuddin said the investment products are available at all major financial institutions in the country, including more than 145 Bank Islam branches nationwide, the Fundsupermart online portal and BIMB Investment consultants.
“We also hope our contributions in Shariah-ESG asset management will complement Malaysia as the world’s leading Islamic finance market place, an initiative of the Malaysia International Islamic Financial Centre and in support of the Securities Commission Malaysia’s Sustainable and Responsible Investment initiatives,” he said.
In June 2019, BIMB Investment was named the ESG Asset Manager of the Year 2019 by ‘The Asset Triple A Islamic Finance Awards’, a recognition of its significant contributions and achievements in ESG, sustainability and asset management in Asia.
Currently, BIMB Investment manages over RM1 billion of ESG assets, while its Global Shariah ESG Equity Fund is Malaysia’s largest global ESG equity fund with a fund size of more than RM930 million and the best performing fund in its class for three years with a total return of about 30%.