This article first appeared in The Edge Malaysia Weekly on October 28, 2024 - November 3, 2024

MIDF Amanah Asset Management (MAAM) has clinched two silver medals in the Best S (social) and G (governance) categories of The Edge Malaysia ESG Awards 2024 with its MIDF ESG Fund (formerly known as the MIDF Amanah ESG Mustadamah Fund).

The fund, which adopts an investment strategy focused on sustainable, high-quality companies, primarily invests in shariah-compliant stocks listed on Bursa Malaysia.

“We achieved this by embedding sustainability into our investment strategies, understanding that today’s markets demand more than just returns; they demand responsibility,” says the MAAM team.

“Our focus on creating investment tools that align with ESG values has not only driven sustainable performance but also set a benchmark in the industry. This isn’t just about ticking boxes; it’s about redefining what success looks like in the financial landscape.”

MAAM says the turbulent investment landscape, marked by macroeconomic volatility, inflationary pressures and geopolitical uncertainties, has led the fund to adopt a defensive asset allocation strategy to preserve capital while still keeping an eye out for opportunities.

The MIDF ESG Fund was able to evaluate the broader impact of its investments by integrating ESG filters into its process, allowing it to be more cautious and strategic when selecting stocks.

Since the fund’s launch in June 2021, the team has seen a marked shift in the domestic investment landscape towards ESG, with investors increasingly recognising the importance of ESG in driving long-term financial performance.

The fund manager also notes the important role regulators and exchanges have in making ESG investing more accessible, adding that their backing has been crucial in bringing products such as the MIDF ESG Fund out of a niche and into the mainstream.

MAAM says support and active engagement from all stakeholders are required to push ESG investing as the norm and drive the sustainability agenda forward.

Looking ahead, the fund manager is optimistic about the MIDF ESG Fund’s potential to meet its absolute return objectives over the medium to long term, despite ongoing market volatility, by integrating robust ESG assessment criteria with traditional investment approaches to navigate challenges effectively.

“Our commitment to a rigorous investment process ensures that our ESG journey isn’t just aspirational but is genuinely impactful,” says the team.

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