RHB Islamic International Asset Management (RHBIIAM)’s newly launched RHB i-Sustainable Future Technology Fund will invest primarily in listed securities, Mohd Farid Kamarudin, CEO of RHBIIAM, told ISFI.
“There are more than 800 stocks [on the Dow Jones Islamic Markets Index] that represent the information technology and technology sector at the moment. We believe this is sufficient for the Fund’s stock selection process.
“Although we can invest in unlisted securities as per the permitted investment list found in the fund prospectus, our investment strategy is to focus on listed equities globally,” Mohd explained.
The fund, launched by RHB Banking Group’s Islamic fund management arm on the 22nd June this year after completing an initial offer period from the 30th May to the 19th June, will utilize a bottom-up investment approach with a thematic sustainable technology overlay.
The investment selection process will see the asset manager apply a positive thematic overlay of eight long-term sustainable technology themes aligned to the SDGs. RHBIIAM will also apply negative screening and will not invest in activities that contribute to environmental and social harm.
With Janus Henderson Investors as the investment advisor, RHBIIAM hopes to identify persistent, under-appreciated growth opportunities and profitable companies in the technology space.
According to the CEO, RHBIIAM expects the technology sector to continue to attract interest over the medium to long term.
Notably, the fund is currently offered under the US dollar class and the Malaysian ringgit-hedged class denomination, representing just two out of the eight currency classes it is authorized to offer by the Securities Commission Malaysia.
According to Mohd, the asset managers do not have a specific timeline for the launch of the remaining currency classes. The indefinite launch of the remaining six currency classes will depend on the demand from its clients and distributors.
The yet-to-be issued currency classes are the Malaysian ringgit class, the Singapore dollar-hedged class, the Australian dollar-hedged class, the euro-hedged class, the pound sterling-hedged class and the renminbi-hedged class.