New ESG fund launched by Kenanga and Northern Trust for sustainable capital growth

KUALA LUMPUR – The Kenanga Sustainability Series: World Quality ESG Fund was launched by Kenanga Investors Berhad with the aim of delivering long-term capital growth.

In a recent statement, Kenanga said that the ESG Fund seeks to provide capital growth through investing in the NT World Quality ESG Fund which is managed by Northern Trust Asset Management.

It stated that the NT ESG Fund will allow for investors to achieve long-term capital growth through investing in securities that exhibit quality and ESG-friendly characteristics, while at the same time, avoiding those that do not meet the specific ESG criteria.

According to Executive Director and Chief Executive Officer, Ismitz Matthew De Alwis, Kenanga’s World Quality ESG Fund series was implemented this year and has allowed investors to diversify their investment risks and returns and enabled them to navigate the markets while investing responsibly.

He said that this ESG Fund would prioritise profitability and sustainability by focusing on ESG leaders with strong financial fundamentals.

Meanwhile, Northern Trust Asset Management’s Head of Asia Pacific, John McCareins, said that the NT ESG Fund would integrate both financial and pre-financial indicators as the material environmental, social and governance factors are pre-financial indicators that can affect a company’s future financial viability and clients’ long-term risk-adjusted investment returns.

McCareins explained that the ESG leaders would be companies that have relatively low carbon emissions, highly profitable, and have solid cash flows.

Due to the strategic cooperation between Kenanga Investors and Northern Trust Asset Management, the local wealth and asset manager’s impact investing initiatives have increased.

Kenanga’s ESG Fund is the second product launched in collaboration with Northern Trust Asset Management, after the High Yield Bond Fund that was launched in March of 2022.

It is also the third in a series of ESG-centric funds which began with the launch of the Kenanga Sustainability Series: Frontier Fund in 2021. The series is a collection of multi-asset class products based on sustainability concerns to promote long-term financial growth for investors and produce social and financial value for surrounding communities.

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