UOB Asset Management has launched an ESG mixed-asset fund in Malaysia.
The United-i Asia ESG Income Fund provides retail investors with income dividends and capital appreciation over the medium- to long-term.
It invests in equities and debt instruments issued by companies across Asia ex-Japan that comply with Shariah principles and adopt ESG considerations into their business models and practices.
Shariah-compliant investments are in line with basic Islamic principles. For example, no stocks may derive income from gambling, alcohol, tobacco, pork products, adult entertainment or military equipment. The principles also restrict the use of some mainstream financial instruments such as debt-financing, charging interest or the use of derivatives.
“This will be complemented by sustainable investing that uses positive screening as a means of selecting the best performing companies that offer environmentally-friendly products and services, or have socially-responsible business practices,” Lim Suet Ling, UOB AM’s CEO for Malaysia, said in the statement.
More firms in Malaysia are launching products that considers ESG factors.
Just this week, Maybank Asset Management expanded its ESG product offering with the launch of its Global Sustainable Technology Fund. In October, it also rolled out the Global Sustainable Equity-I Fund, which integrates ESG factors into its investment process and is also Shariah-compliant.