Markets
SRI products gaining traction
Cheah Chor Sooi | 01 Dec 2017 00:30
Shariah-compliant investments are now widely considered a subset of ESG investing, says Akmal
Sustainable and responsible investing (SRI) looks set to make a long-term impact in the Malaysian capital markets. 

This is given the surge in the number of institutional investors that range from pension to international sovereign wealth funds subscribing to more sustainable or ethical forms of investing.

Such a trend is further spurred by the increasingly blurred distinction between shariah-compliant funds and socially responsible or environmental, social and governance (ESG) funds as both share very similar traits and attributes.

In fact, shariah-compliant investments are now widely considered a subset of ESG investing. From an investment perspective, the alignment of shariah funds and ESG funds is positive as more ethical investments would be implemented and adopted, according to AIIMAN Asset Management (formerly known as Asian Islamic Investment Management) managing director Akmal Hassan.