KUALA LUMPUR (April 18): Eastspring Investments Bhd has launched a new impact investing fund, Eastspring Investments Global Impact Fund (GIF) for Malaysian investors.

At its virtual launch cum press conference on Monday (April 18), Eastspring chief executive officer Raymond Tang said the fund is a wholesale feeder fund that aims to provide sophisticated investors with long-term capital growth by investing in the target fund, the Wellington Global Impact Fund which is managed by Boston-headquartered Wellington Management.

Tang highlighted that the target fund managed by Wellington Management will seek to invest in companies whose core products and services address positive social or environmental change alongside a financial return, noting that these companies often have positive industry structures and long runways for growth. 

“We prioritise our fiduciary duty and we are firmly invested in the future of our clients. We also recognise the responsibility we have to society, local communities and the world at large.

“We are therefore excited to offer a fund that not only strives to provide potential returns over the long term but also contribute positive outcomes to social and environmental issues,” Tang said.

Tang added that the launch of the GIF comes at an opportune time as the global Covid-19 pandemic and the rise of natural disasters had heightened investors’ focus on environmental and social issues, and in turn increased demand for funds incorporating environmental, social and governance (ESG) themes. 

Meanwhile, Eastspring head of distribution Yap Siok Hoon explained that the new fund is suitable for sophisticated investors with higher risk tolerance and that it seeks to provide capital appreciation and global exposure over the long term.

Yap added that the GIF will invest in 11 themes across three categories, namely life essentials, human empowerment and the environment, with at least 90% of its net asset value in the target fund rather than directly investing in global equities.

According to her, while impact investing will be the focus, the GIF has a double bottom line investment strategy that will not forego returns as it invests in impact companies alongside delivering potential investment returns.

“We designed the GIF to feed into the Wellington Global Impact Fund because of the latter’s strong track record of performance. Importantly, the target fund has produced measurable outcomes,” Yap said.

The new fund is available in ringgit with an initial minimum investment of RM1,000 at 50 sen per unit during its 21-day initial offer period from April 18 to May 8 from authorised distributors of the fund, while subsequent investments can be made with a minimum of RM100 based on market fluctuations, Yap noted.