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BIBD Securities to launch ESG Fund in collaboration with Arabesque

BusinessBIBD Securities to launch ESG Fund in collaboration with Arabesque

BIBD Securities Sdn Bhd will soon launch Shariah-compliant ESG (environmental, social, and corporate governance) funds for investors seeking to invest in products that promote sustainable economic growth, in accordance with the global commitment to the United Nations Sustainable Development Goals (SDGs). 

The ESG Fund will be officially launched this Monday (December 6th, 2021) in collaboration with global asset management firm Arabesque.

With this initiative, the BIBD group is continuing its commitment to sustainability as part of the Group’s Sustainability Framework. The framework intends to help BIBD’s focus on Environmental Protection, Responsible Entrepreneurship and Inclusive Social Impact as an art of its overall business strategy. 

BIBD Asset Management (BIBD AM) which operates under the license of BIBDS, was recently enlisted as a signatory of the United Nations Principles of Responsible Investing (UN PRI), a first for the country.

The UN PRI is an UN-supported international organization that works to promote the incorporation of environmental, social and corporate governance (ESG) factors into investment decision-making. 

“We aim to become the domestic champion for ESG and socially responsible investing in Brunei, which aligns with the principles of Maqasid Shariah that we have been practising for a long time now. Having been enlisted with the UN PRI, it showcases our commitment towards incorporating the six principles of UN PRI into our decision-making process and led us to the introduction of this product for our clients,” said BIBD Securities Managing Director Haji Muhammad Yazid bin Dato Paduka Haji Mahadi said. 

Through the incorporation of ESG data and the use of Artificial Intelligence (AI), the fund seeks to reduce human biases and deliver risk-adjusted returns. 

The Arabesque Q3.17 Global ESG Momentum Flexible Allocation Fund is a globally diversified multi-asset strategy that integrates material sustainability criteria and bottom-up, AI-driven stock analyses within a rules-based investment process.

In strict compliance with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) guidelines, the strategy ensures the Shariah-compliancy of the underlying funds. 

The strategy’s global investable universe consists of approximately 1,500 highly liquid and sustainable companies and excludes companies that generate profit from nonpermissible business activities outlined in the AAOIFI guidelines. 

The transparent stock selection process is equally allocated into circa 100 companies with the strongest prospects for future success, while a dynamic cash allocation allows for increased stability and systematic market participation. 

BIBD Securities will be launching two share classes of the fund – R share class is for retail investors with a minimum subscription of USD100 (both lump sum subscription and monthly investment plan) while USD share class is for institutional investors with a minimum subscription of USD50,000. 

BIBD Securities is a wholly-owned subsidiary of BIBD and an asset management firm that offers Shariah-compliant solutions to retail and institutional investors and brokerage services for securities listed on the Malaysia and Singapore stock markets. 

Before signing up, potential investors are advised to fully understand and familiarise themselves with the content, terms and conditions and the risks associated with the product. 

Those interested to sign up are invited to set an appointment with BIBD Securities by calling the BIBD Contact Centre at 223 8181.

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