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ValueCAP launches fund that invests in sustainability-themed stocks

KUALA LUMPUR (Jan 20): ValueCAP Sdn Bhd, which is owned by Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Bhd, has launched an equity growth and value fund that aims to provide returns to investors by selectively investing in listed securities within its reference benchmark constituent list — the FTSE4Good Asean 5 Index.

The fund is managed by its wholly-owned subsidiary VCAP Asset Managers Sdn Bhd (VCAM).

Named the Asean 5 ESG Opportunity Fund, the fund will invest in securities listed on the stock markets of Malaysia, Singapore, Indonesia, Thailand and the Philippines.

"The launch of this fund is in line with VCAM’s intention of providing distinct, value-add investment products that invest in Asean listed securities with a sustainability theme. The fund comprises two classes of units — the US dollar class units and the ringgit class units, allowing investors greater flexibility to participate in the fund," said VCAM in a  statement today.

"The fund’s base currency that will be used to calculate the daily net asset value is US dollars," it added.

According to VCAM chief executive officer and chief investment officer Shan Kamahl Mohammad, the fund is best suited to investors who are interested to invest in a sustainable manner, with a medium- to long-term investment horizon.

“Responsible investing, which includes environmental, social and governance (ESG)-themed investing, continues to gain momentum worldwide with a combination of investment managers, asset owners, and other investment-related organisations, representing US$62 trillion in assets under management being signatories of the UN Principles for Responsible Investment as of April 2016," he said.

Shan Kamahl believes Asean will see an increased inflow of sustainability-themed money.

“VCAM believes ESG principles will become central to investment considerations in the region. The Asean 5 ESG Opportunity Fund offers investors the opportunity to tap into this exciting growth area.

"At the same time, we believe that having a US dollar class in addition to the ringgit class places us in a strong position to attract investors globally who may be looking to add sustainable Asean-5 investments to their larger global investment portfolios,” he added.

The new fund is an open-ended wholesale fund and was officially launched last month, with a minimum initial investment sum of US$80,000 or RM300,000 and above. The initial offer period ends on Jan 29.

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