Bursa Malaysia Berhad and AmInvest have on Wednesday launched the FTSE4Good Bursa Malaysia ETF, marking Malaysia’s first and only sustainable and responsible investment (SRI)-qualified exchange-traded fund (ETF) in the market, adding to AmInvest’s existing suite of ETFs.
The duo said in a statement that the fund is designed to track the performance of the FTSE4Good Bursa Malaysia Index.
The index constituents are selected from the FTSE Bursa Malaysia EMAS Index, screened based on transparent and well-defined environmental, social and governance (ESG) methodology and liquidity criteria, developed by FTSE Russell, in collaboration with the exchange.
Introduced by Bursa Malaysia in December 2014, the index was developed as part of the exchange’s broader commitment to advancing ESG practices in the Malaysian capital market.
It aims to support investors in making ESG-focused investment decisions and raise the visibility of listed companies with strong ESG practices.
The fund and index is in line with the nation’s focus towards a lower-carbon and more sustainable economy.
“This collaboration reflects our shared commitment to product innovation, investor empowerment and advancement of sustainability in Malaysia’s capital market，
“Bursa Malaysia is building a marketplace that offers greater choice, deeper liquidity, and more opportunities for investors to achieve their financial goals – whether through securities, derivatives or ETFs，” said Fad’l Mohamed, Chief Executive Officer of Bursa Malaysia.
According to him, Malaysia has 15 ETFs listed on Bursa Malaysia.
HE said FTSE4Good Bursa Malaysia ETF adds to the growing and diverse range of ETFs listed on the exchange – from domestic and regional equities to fixed income, commodities, Shariah-compliant assets, and now, ESG-focused indices.
“The FTSE4Good Bursa Malaysia ETF tracks the performance of the FTSE4Good Bursa Malaysia Index, which is designed to highlight companies demonstrating strong ESG practices,
“Through this curated ETF, investors can align their portfolios with responsible practices while encouraging listed companies to raise the bar on their ESG performance,” he added.
Meanwhile, AmInvest is the largest ETF provider in the country by assets under management (AUM), totaling approximately MYR 1.8 billion ($430 million) in ETFs AUM with about 75.4 percent market share.
The bank also leads as the foremost fund manager and provider of SRI-qualified funds, with AUM totaling MYR 4.3 billion ($1.03 billion) accounting for approximately 28.2 percent market share.
It currently manages a total of nine SRI-qualified funds.
“The launch of Malaysia’s first and only SRI-qualified ETF is a meaningful milestone for us at AmInvest, and truly reflects AmBank Group’s continuous commitment to embedding sustainability across all facets of our business,
“This ETF not only broadens our suite of responsible investment solutions but also reinforces our ambition to lead the market in shaping a more sustainable financial ecosystem,” said Jamie Ling, Group Chief Executive Officer, AmBank Group.
He noted the bank has a long-standing track record of introducing innovative investment solutions, including Malaysia’s first and only bond ETF in the market, which is the ABF Bond Index Fund.
“As investors increasingly seek purpose-driven opportunities, we believe capital can, and must, be a powerful catalyst for positive change,
“By offering access to companies that demonstrate strong ESG practices, we are driving long-term value for both society and the economy,” he added.
Goh Wee Peng, Managing Director, AmBank Group Wealth Management, added the fund is introduced to meet the growing demand from investors seeking ethical and sustainable investments.
“Through this Fund, investors can now easily access Malaysian companies that demonstrate strong ESG practices and leadership,
“Just like buying a stock on Bursa Malaysia, with a low initial investment of only 100 units, investors gain exposure to a well-diversified portfolio spanning sectors such as banking, healthcare, utilities, telecommunications, and construction,” she said.