Pheim Global ESG Islamic Fund

Pheim Global ESG Islamic Fund strives to provide the best possible returns over a long-term period by investing in the Securities of Shariah-Compliant Companies which emphasise on the concept of ESG in their business practices.

Suitable for investors who prefer long-term positive capital appreciation and want to have a Shariah-Compliant portfolio of global investments that emphasises the concept of ESG.

The Fund seeks to provide capital appreciation. To pursue this goal, the Fund will invest primarily in the Securities of Shariah-Compliant Companies which emphasise on the concept of ESG in their business practices. 70% – 95% of the NAV of the Fund will be invested in Shariah-Compliant Equities and Shariah-Compliant Equity Related Securities (including Shariah-Compliant Warrants); 0% – 20% of the NAV of the Fund will be invested in Islamic Collective Investment Schemes (including Islamic REITs); and the remaining NAV of the Fund will be invested in Sukuk and Islamic Liquid Assets. The performance benchmark of this Fund is a 5.5% growth in NAV per annum over the long-term.

ESG investing has evolved in recent years to meet the demands of institutional and retail investors, as well as certain public sector authorities, that wish to better incorporate long-term financial risks and opportunities into their investment decision making processes to generate long-term value.

“Pheim is a strong advocate of Investing according to Environment, Social and Governance (ESG) criteria. We believe Pheim’s Investment Philosophy is relevant and will add value to the ESG Investment Process.”

Environmental factors aim at evaluating a company for the grade of involvement into environmental issues, that now more than ever are becoming increasingly relevant for the wellness of mankind, and thus investors tend to be more aware and invest in companies that are compliant with their environmental values.

Social factors are more imbedded in our society, since in the past there have been many social revolutions that aimed specifically at pointing out social injustices within a company, and thus we tend to be indignant whenever human rights are violated or more generally, when company abuse their workforce.

Governance factors refer to a set of rules or principles defining rights, responsibilities, and expectations between different stakeholders in the governance of corporations. A well-defined corporate governance system can be used to balance or align interests between stakeholders and can work as a tool to support a company’s long-term strategy.

In either case, there is growing evidence that the sustainability of finance must incorporate broader external factors to maximize returns and profits over the long-term, while reducing the propensity for controversies that erode stakeholder trust.

ESG investing has also recently garnered interest from the public sector, including central banks that have expressed support for ways to help transition financial systems toward “greener”, low-carbon economies. Numerous central banks in advanced and emerging market economies have committed to integrate ESG assessment and investing practices into some of their responsibilities, such as reserve management and supervisory practices including stress tests. Irrespective of the actual path of climate change, the decisions being made by corporations and financial intermediaries indicates that climate transition and physical risks will increasingly affect the financial sector and warrant inclusion in the assessment of financial stability.