VCap Asset Managers Sdn Bhd (VCAM) has launched the first local wholesale fund in Malaysia that promotes the principles of environmental, social and governance (ESG) principles.

The Malaysian ESG Opportunity Fund provides investors a chance to invest into companies which deliver sustainable and long term returns.

The open-ended equity wholesale fund will invest into companies that adhere to sound corporate governance principles, with crafted socially responsible business strategy and pay heed to accountable environmental practices. It is benchmarked against the FTSE4Good Bursa Malaysia Index.

“While ESG considerations have been a part of ValueCAP’s investment philosophy from the very beginning, we can now utilise the FTSE4Good Bursa Malaysia Index universe of stocks, 25 currently, as a point of departure for our fund.

"VCAM’s value is our portfolio construction capabilities built on fundamentals screens, and our proprietary stock selection methodology to provide investors with long term returns,” says Datuk Khairil Anuar Abdullah, chairman of VCap Asset Managers Sdn Bhd.

The wholesale fund is managed by VCAM, which is a wholly owned asset management subsidiary of ValueCAP Sdn. Bhd.

The FTSE4Good Bursa Malaysia Index currently boasts 25 constituent companies that demonstrate a leading approach towards addressing EST risks derived from the top 200 companies in the FTSE Bursa Malaysia EMAS Index.

These factors have been evaluated using FTSE’s proprietary EST ratings model, which is the engine of all FTSE4Good indices around the world which measures, amongst others, efforts in environmental conservation, the impact of social responsibility initiatives on the community, and responsible and ethical decision-making.

The initial offer price of the fund is RM1 per unit and the minimum initial investment amount is RM250,000.