Potential Benefit From Investing In The Environment
Kuala Lumpur, 18 September 2007 – HwangDBS Investment Management Berhad (formerly known as Hwang-DBS Investment Management Berhad) (“HwangDBS IM”), known for its track record and forte in introducing innovative funds, is offering Malaysians the opportunity to benefit from Sustainable and Responsible Investments (“SRI”) via its latest global offering, the HwangDBS Environmental Opportunities Fund (“EOF”), externally managed by BNP Paribas Asset Management (“BNPP AM”).
Globally, nations and corporations are starting to turn a collective ear on the environmental concerns raised by scientists. In the investing scene, fund houses and investors alike are rallying in support of SRI-type fund offerings. In Asia, profit and ethics are slowly finding their way to the investment limelight. Over the last 20 years, the SRI community reported more than USD 4 trillion worth in funds allocated for SRI1 . Whilst going green certainly benefits the environment on many levels, the question remains as to how investors can conserve, care AND profit?
“Corporate Social Responsibility (“CSR”) today is no longer about cleaning up a river or donating to a charity. It encompasses a 360 view of the organisation, which in short refers to its business strategy and its interaction with employees, stakeholders, suppliers, community and environment. SRI forms but a fraction of the total CSR commitment and is the first step for investment management companies such as ours to do our bit for the environment and the community we live and operate within. There is an urgent need for new business models and green innovation as scarcity of resources and environmental pollution prompts us to reconsider our current lifestyle,” said Teng Chee Wai, Chief Executive Officer and Executive Director of HwangDBS IM.
Teng added, “HwangDBS IM is extremely proud to offer EOF. It offers an exciting opportunity to tap into a new equity asset class and profit from three significant sectors, namely renewable energy, water treatment and waste management. It is product innovation at its best as the right business model means environment-focused companies can potentially be global conglomerates that are profitable and with positive growth prospects. The key objective is to ensure efficient and effective use of our existing resources as well as to reduce, reuse and recycle waste.”
Globally, more and more corporations realise that environmental issues are fundamentally business issues and there is a growing need to incorporate them into their long-term business strategies. Among the many factors that will contribute to the strong growth of EOF are the global implementation of environmental policies and the scarcity of resources that will eventually prompt resource-dependent companies to either seek alternative materials or to recycle and reuse the existing.
EOF is externally managed by one of the leading environmental investment specialists, BNPP AM that holds an excellent long-term track record within this sector. Since 2002, SRI has occupied a major place in BNPP AM's activities with both a dedicated team and a range of SRI funds across all asset classes. This commitment is reflected in its leading role in several initiatives on subjects such as the transparency of company reporting, support for extra-financial research, taking account of key issues such as climate change, microfinance or support for academic research.
“BNPP AM is delighted to work in close cooperation with our strategic partner, HwangDBS IM, to introduce environmental investments to Malaysia. By bringing together BNPP AM’s expertise and long-term track record in this field, as well as our partner’s experience in the domestic market, we are able to present to investors an investment that captures opportunities in environmental technologies and services,” said CHENG Tan Feng, Head of BNP Paribas Asset Management Singapore and for Southeast Asia.
EOF is an equity / growth fund and has an approved size of 600 million units priced at RM0.50 per unit (RM 300 million). The minimum initial investment is RM1,000 and the subsequent investment is RM100. The fund is targeted at risk-tolerant investors seeking to diversify their investments and have a medium to long-term investment horizon. The fund’s objective is to achieve capital appreciation over the same time horizon by investing globally in companies involved in Environmental Markets.
EOF will be available at Standard Chartered Bank Berhad, CIMB Wealth Advisers Berhad, Hong Leong Bank Berhad, RHB Bank Berhad, EON Bank Berhad, Affin Bank Berhad, Apex Investment Services Berhad, RHB Unit Trust Berhad, ABN Amro Bank Berhad, AmBank Berhad, AmPrivate Banking Berhad and Philip Mutual Berhad from today onwards.
For more information, please log on to www.hdbsim.com.my or visit any of the listed bank branches nationwide.
1 Source: Myths and realities of Socially Responsible Investing (SRI) in Asia.
http://www.oww-consulting.com/socially-responsible-investing/myths-and-realities-of-socially-responsible-investing-sri-in-asia.html