KUALA LUMPUR (June 28): Nomura Asset Management Malaysia Sdn Bhd is aiming to achieve RM50 million in assets under management (AUM) for its inaugural Global Shariah Sustainable Equity Fund, said its managing director and country head Leslie Yap.

Speaking in the media briefing after the launch of the fund, Yap said the new addition is set to improve local investor access and cater to the growing demand for impact investing.

“Our goal is to offer our clients more opportunities and ways to invest according to their principles, achieve their investment goals as well as to generate positive impact.

“We believe we can do so by providing long-term value with quality solutions that combine environment, social and governance (ESG) and Shariah principles,” he said.

Globally, Nomura Asset Management has allocated approximately US$600 million (about RM2.64 billion) into ESG funds. Yap said he expects the trend to increase over the years, given encouraging demand from investors.

In a separate statement, Nomura Asset Management said it is actively integrating and progressing towards its six impact goals as part of its commitment to grow the universe of ESG companies globally.

This includes mitigating climate change, natural capital depreciation and obesity, eliminating communicable diseases, and providing global access to clean drinking water and basic financial services, which in turn are all aligned to the United Nations’ Sustainable Development Goals, it said in a statement.

“Nomura Asset Management has been a Principles for Responsible Investment signatory since 2011 and has been building on its capabilities and offerings to widen the acceptance of the sustainable investing approach,” it said.

To date, Nomura Asset Management Malaysia and Nomura Islamic Asset Management Sdn Bhd have a total AUM of RM29 billion as of May 31, 2022.

On the newly-launched Global Shariah Sustainable Equity Fund, it is available for a minimum initial investment of RM1,000 and US$1,000. Nomura Asset Management UK Ltd has been appointed as the investment advisor to the fund and will provide investment research and stock recommendations in accordance with the investment objectives.

“For this particular fund, we invest in Shariah-related equities in the developed market, specifically US and European equities,” Yap said.

“Despite the inflation fear, people need to have a time horizon investing strategy and we believe that the market is in correction mode currently,” he added.