Green Stock Funds Bloom in Malaysia As Shariah Goes Sustainable

摘要

Islamic asset managers are setting up sustainable stock funds in Malaysia as they tap demand for more environmentally conscious investing. Saturna Sdn., a unit of the company that runs the biggest Shariah-compliant share fund in the U.S., is considering setting up a vehicle based in Kuala Lumpur that will invest in green shares, said Executive Director Monem Salam. BIMB Investment Management Sdn., aims to start a Malaysia-focused environmental plan in the third quarter, said Chief Executive Officer Najmud-din Mohd Lutfi. Environmental, social and governance funds are in their infancy in Asia, accounting for less than 1 percent of total managed assets compared with almost 60 percent in Europe. While Malaysia introduced guidelines to promote environmentally and socially responsible investing in late 2014, the government has since become embroiled in allegations of financial irregularities at a state investment company.