This article first appeared in The Edge Malaysia Weekly on September 14, 2026 - September 20, 2026

AHAM Asset Management (AHAM Capital) has won the Best Fixed Income Fund award under the Best ESG Overall category and the Best in E (Environment) award under the Best E, S and G category with the AHAM ESG SGD Bond Fund.

Its deputy managing director and chief fixed income officer Esther Teo says she is proud that AHAM Capital achieved 99% ESG coverage across internally managed equities and bonds in 2025, which reflects the significant progress the firm has made in embedding ESG considerations into its investment and risk management process.

She says the achievement was underpinned by the continued strengthening of the firm’s responsible investing framework, including the development of an internal ESG rating system and the expansion of ESG coverage across its investment universe. “Together with ongoing enhancements to our ESG research capabilities, analytical tools and governance processes, these efforts have enabled us to systematically incorporate ESG considerations alongside traditional financial analysis, supporting more informed investment decisions and long-term value creation for our clients.”

For Teo, responsible investing is becoming increasingly important as sustainability-related risks and opportunities play a greater role in shaping long-term investment outcomes. Climate transition risks, evolving regulations and changing stakeholder expectations are influencing how companies operate and create value over time.

At AHAM Capital, ESG integration is the firm’s primary responsible investing strategy and is applied across all internally managed portfolios, regardless of whether they have a specific ESG objective.

The firm views ESG factors as providing valuable insights into a company’s resilience, governance and long-term value creation potential, complementing conventional financial analysis and supporting more informed investment decisions.

“Ultimately, our goal remains unchanged: to help clients achieve their financial goals. Responsible investing supports that objective by providing a more complete picture of the risks and opportunities that shape long-term investment outcomes,” Teo says.

The approach has also been tested against a challenging market backdrop. She says the interest rate environment has been the defining challenge this year, shaped largely by elevated geopolitical risks and persistent uncertainty over the US Federal Reserve’s interest rate path.

AHAM Capital responded by maintaining a defensive duration stance while placing greater emphasis on credit selection. Corporate bonds in the SGD market proved relatively resilient, providing the portfolio with a degree of stability.

Looking ahead, Teo says the continued growth of ESG and sustainable and responsible investment funds in Malaysia will require support from multiple stakeholders.

While regulatory leadership has helped advance the market, she says greater investor awareness of how ESG factors can influence long-term investment outcomes and — coupled with stronger institutional demand — spur wider adoption and innovation.

She adds that the market would also benefit from increased sustainable bond and sukuk issuance, more comprehensive sustainability disclosures and higher-quality ESG data, particularly from private issuers.

Teo remains constructive on the fund outlook. While yields are attractive and demand for quality SGD credit is supportive, she says the firm will stay selective and continue to subject ESG-labelled issuers to rigorous scrutiny rather than accepting sustainability labels at face value.

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