16 July 2021

The NEW FTSE4GOOD Bursa Malaysia Shariah Index

Bursa Malaysia Berhad and FTSE Russell, a leading global index provider, on 5 July 2021 launched the FTSE4Good Bursa Malaysia Shariah (“F4GBMS”) index.

This new Environmental, Social and Governance (“ESG”) themed index is designed to track constituents in the FTSE4Good Bursa Malaysia Index (“F4GBM”) that are Shariah-compliant, according to the Securities Commission Malaysia Shariah Advisory Council (SAC) screening methodology.

How many are inside the index now?
The composition of the index, which comprises 54 constituents as of June 2021, is reviewed semi-annually in June and December. The F4GBMS index will serve as a basis for fund managers to develop new investment products comprising a portfolio of shariah-compliant equities guided by sustainable investing principles. Such investment solutions include the ESG Mustadamah Fund created by MIDF Asset Management launched in June 2021.

“We are pleased to offer a Shariah version of our respected F4GBM index, which has played an essential role in recognizing public listed companies that have taken steps to improve their ESG practices and disclosures. The launch of the F4GBMS index caters to the growing demand for Shariah-compliant investment tools. With the convergence between ESG and Islamic investing, this new index introduces a new dimension for local fund managers by embedding shariah principles into an ESG index,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.

“It also highlights Bursa Malaysia’s commitment in meeting the market’s indexing needs, as we focus to diversify and expand our index offerings to include more thematic and style indices.”

Commented Helena Fung, Head of Sustainable Investment, APAC, FTSE Russell, “For over two decades, FTSE4Good indexes have provided investors with robust ESG benchmarks covering multiple equity markets including Malaysia. Widely tracked by ETFs and other passive vehicles, FTSE4Good indexes have a powerful track record of fostering improvements in corporate sustainability performance by increasing eligibility requirements over time. Working with our partners at Bursa Malaysia, it was important that we add shariah-compliant versions of the popular FTSE4Good Bursa Malaysia Index to cater to investor demand for ESG and shariah-compliant index solutions.”

Oh I see...

Then, who is inside the list? Among the glove companies, are they inside also? (Top Glove, Hartalega, Supermax... Only one inside the list. Can you guess who is the ESG friendly company?)

Curious and wanna find it out?
Click here to view the full listing... (this link will change every 6 months)

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