This article first appeared in The Edge Malaysia Weekly on December 12, 2022 - December 18, 2022

The RHB Global Impact Fund took the gold award in the best impact in human development fund category at The Edge Malaysia ESG Awards 2022. Managed by RHB Asset Management, the fund provides investors with purposeful investment opportunities, coupled with satisfactory potential returns over the long term, according to its fund fact sheet.

“The stringent fund selection criteria largely contributed to its success. The fund’s strategy not only gives a new investment opportunity to investors, but also provides them with access to companies whose core business, products and services address global social and environmental issues,” says Mohd Farid Kamarudin, acting managing director, for RHB Asset Management Sdn Bhd.

This award reinforces the company’s efforts in introducing more market-leading funds with a distinctive investment strategy and purpose, he adds.

RHB Global Impact Fund is a wholesale fund that invests in the BlackRock Global Impact Fund, which is managed by global investment manager BlackRock. The target fund offers a diversified portfolio exposure across geographical sectors, holdings and impact themes that play a significant role in generating potential returns over the long term. The target fund invests in 10 key themes that are aligned with the United Nations Sustainable Development Goals (SDGs), including public health, green energy, sustainable food as well as financial and digital inclusion.

“For example, the target fund invests in a company that provides 22.6 million adults in Kenya with mobile financial services, which is very much aligned with the UN SDGs’ first goal, known as ‘No Poverty’, and the UN SDGs’ ninth goal, which is ‘Industry, Innovation and Infrastructure’. This company in Kenya makes an impact by bridging the digital divide where telecoms and internet access is under-penetrated while promoting financial inclusion,” says Farid.

He adds that the impact investing approach sets the highest bar in the sustainable investing domain. “We often come across strategies or funds that incorporate ESG (environmental, social and governance) screening as part of their securities selection process. However, this may not achieve the key objective of delivering impact. Here, additional analysis on measurable possible impact outcomes is very important. The target fund’s investments must be able to demonstrate measurable impact.

“We believe that the RHB Global Impact Fund will deliver good returns over the long term despite the elevated market volatility and rising inflation. The target fund continues to be deeply rooted in a long-term fundamental thesis. It also continues to search for under-appreciated drivers of long-term returns around the world. This can be achieved via BlackRock’s deep engagements and partnerships with portfolio companies that can identify links between impact outcomes and a company’s ability to create a better and more sustainable future for all,” says Farid.

On furthering the development of ESG and sustainable and responsible investment (SRI) products in the country, he says there is still room to develop awareness of the benefits of sustainable investing and encourage greater participation among retail investors.

“The rising push towards sustainable investing globally has encouraged local corporates to promote the sustainable agenda led by Bank Negara Malaysia and the Ministry of Finance. Offering incentives to asset management companies will continue to boost the sustainable investing arena,” says Farid.

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