BIMB Investment targets 15% growth in assets under management this year

KUALA LUMPUR: BIMB Investment Management Bhd (BIMB Invest) is aiming for a 15% growth in its assets under management (AUM) this year, from RM1.1 billion currently, driven by its institutional and retail businesses.

BIMB Invest CEO Najmuddin Lutfi said last year’s AUM was largely driven by institutional funds, while retail constituted 20%.

“It’s all about quality and strategy. We want to develop a full suite of products for clients so that they have a well-diversified portfolio. We’ve launched a global equity fund, now we’re launching a Malaysia equity fund, we’re planning to launch a regional fund, perhaps an Asia ex-Japan fund,” he told a press conference after launching the BIMB-Arabesque Malaysia Shariah-ESG Equity Fund on Friday.

He said another fund will be launched in the second half of this year.

BIMB Invest has rebranded itself and redefined its value propositions to investors as a syariah-environmental, social and governance (ESG) fund house with its partnership with global asset manager Arabesque Asset Management Holding Ltd, UK (Arabesque Partners). This partnership offers the next generation of investment management solutions to retail and institutional investors that are transparent, robust in risk management and sustainable in investment performance.

“The way we position ourselves now moving forward is we’re a syariah-ESG fund management company. All our products moving forward are syariah and ESG-compliant,” said Najmuddin.

BIMB Invest has recalibrated its investment processes and strategy by adopting financial technology in its funds portfolio construction and management, while integrating both syariah values and ESG principles in its investment process and philosophy.

The BIMB-Arabesque Malaysia Shariah-ESG Equity Fund is a syariah and ESG-compliant fund that invests in Malaysian listed companies using artificial intelligence technology. It is suitable for investors who are seeking exposure to syariah and ESG-compliant Malaysian stocks, as well as capital appreciation over the medium to long-term period, with moderate to high risk tolerance.

The fund, which is estimated to fetch a 14% return a year, will invest in listed equities, of which at least 70% of the portfolio is allocated to companies in Malaysia, and up to 30% to foreign companies. The target fund size is RM100 million over a one-year period.

This is the second fund BIMB Invest has launched in partnership with Arabesque Partners. The first was the Global Equity Shariah Fund, which is also ESG-compliant, with an 18% return based on its one-year performance.

The BIMB-Arabesque Malaysia Shariah-ESG Equity Fund is offered for subscription in the ringgit, US dollar, euro and Singapore dollar at RM0.25, €0.25 and S$0.2