A Syariah-compliant, ESG Fund for the public

BIBD Securities Sdn Bhd held a virtual client event in conjunction with the launch of Brunei’s first Syariah-compliant, Environmental Social Governance (ESG) Fund.

The Arabesque Q3.17 Global ESG Momentum Flexible Allocation Fund, available for the public starting yesterday, 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 Syariah-compliancy of the underlying funds.

BIBD Securities Managing Director Haji Muhammad Yazid bin Dato Paduka Haji Mahadi said, “Within our core values is the Maqasid Shariah and the offerings that we provide to our clients are Islamic (Syariah-compliant products). So when we look at this fund, we see that there is a compelling proposition for our clients, not only in the fact that it is Syariah-compliant and supports ESG, but if we go down to the fundamental values that underpin what is Syariah and ESG, there are a lot of shared values.”

Haji Muhammad Yazid said clients whose values are heavily focussed on Shariah compliancy and sustainability will be able to invest for their future without having to compromise on their personal values.

Commenting on the growing state of the Brunei capital market industry Gabriel Karageorgiou, Partner at Arabesque Asset Management, said, “Over the past few years, we have seen a growing participation from mass market clients into capital markets due to increasing awareness and knowledge surrounding savings and investing.

BIBD Securities Managing Director Haji Muhammad Yazid bin Dato Paduka Haji Mahadi with representatives from Arabesque Asset Management at the virtual launch event. PHOTO: BIBD

“One of the rapidly growing movements not just in Brunei, but around the world, is sustainable investing. Sustainable investing provides a way for investors to grow their wealth without compromising on their values.”

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

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

“With the UN PRI, it showcases our commitment towards incorporating the six principles of the UNPRI into our decision-making process. This is including but not limited to incorporating ESG issues into our investment analysis, policies and practices and promoting the implementation of the principles in the industry,” Haji Muhammad Yazid said.

“The UN PRI is also a step forward in BIBD’s commitment to pursuing a sustainability strategy to deliver contributions to the UN Sustainable Development Goals (UN SDG) and align ourselves to the Brunei Darussalam National Climate Change Policy (BNCCP),” he added.

The launch of the ESG fund is one of the many initiatives that the BIBD group is embarking on as part of the group’s Sustainability Framework, which aims to support a wider commitment to sustainability which will be adopted into an overall business strategy which emphasises environmental protection, responsible entrepreneurship and inclusive social impact.

In conjunction with the launch of the fund, BIBD Securities is offering exclusive gifts to customers who sign up for their monthly investment plan or lump sum payment.

Those interested are invited to set an appointment with BIBD Securities by calling BIBD contact centre.