July 6, 2021

Bursa Malaysia Launches F4GBMS

 Bursa Malaysia Bhd and FTSE Russell, a leading global index provider, today launched the FTSE4Good Bursa Malaysia Shariah index (F4GBMS) to be the basis for fund managers in developing new investment products comprising a portfolio of Shariah -compliant equities guided by sustainable investment principles.

The investment solutions including the Mustadamah ESG Fund set up by MIDF Asset Management which incorporates environmental, social and governance (ESG) considerations were launched last month.

The composition of the index consisted of 54 constituent companies last month, reviewed in June and December each year.

“This new ESG feature index is designed to track the constituent companies in the F4GBM Index that comply with Shariah, according to the screening methodology of the Securities Commission Malaysia's Shariah Advisory Council.

"We are pleased to offer a Shariah version of the F4GBM index, it has played an important role in recognizing public listed companies that have taken steps to improve their ESG practices and declarations," said Bursa Malaysia Chief Executive Officer (CEO) Datuk Muhamad Umar Swift in a statement yesterday.

Bernama reported that the launch of the index emphasized Bursa Malaysia's commitment in meeting the market's indexing needs due to its focus on diversification and

development of index bids to include more themed indices.

Meanwhile, FTSE Russell’s Head of Sustainable Investments, APAC, Helena Fung said the FTSE4Good index has a strong track record of driving improved corporate sustainability performance by boosting eligibility requirements over time.

“Working with our partners on Bursa Malaysia is important for us to add a Shariah -compliant version of the popular F4GBM index to

meet investor demand for ESG and Shariah -compliant index solutions, ”he explained.