In line with the nation’s goal towards sustainability, Phillip Capital Management (PCM) has integrated ESG factors that we attest as material and relevant for a company’s financial performance and long-term sustainability into our investment decision-making process. These include but not limited to ESG ratings by established index, environmental considerations (climate change, natural resources preservation, pollution & waste), social considerations (health & safety, community engagement, employee relations) and governance considerations (board independence, transparency & disclosure, shareholder rights).
With that, PCM introduced a discretionary portfolio that invests in stocks with high ESG ratings from the F4GBM and F4GBMS Indices, namely PMART and PMA ESG, in April 2022. There are both conventional and Shariah options available. PMART and PMA ESG is suitable for investors who want to optimise the risk-adjusted return by constructing a diverse sustainable portfolio of ESG companies. Here is the list of stocks in our ESG mandates.
Table 1: ESG Mandates – Stock List 2024
Conventional
Source: PCM, Bloomberg, 31 May 2024
Shariah
Source: PCM, Bloomberg, 31 May 2024
In our previous publication, we examined the effectiveness of dividend investing as a strategy during times of market weakness and uncertainty, and the benefits of dividend investing should not be ignored by investors. Recognising the increasing significance of ESG factors in investment decisions, we have introduced the Dividend Enhanced ESG Mandate in April 2024, which integrates quantitative investment methods inspired by our Dividend Enhanced strategy. This methodology involves Universe selection, Filtering, Construction, and Rebalancing. Building upon our investment strategy, we have integrated an ESG filter mandating that selected stocks meet a minimum ESG Rating of 3 Stars from the FTSE4Good Bursa Malaysia (F4GBM) Index.
Here is the list of stocks in our Dividend Enhanced ESG mandates.
Table 2: Dividend Enhanced ESG Mandates – Stock List 2024
Conventional
Source: PCM, Bloomberg, 30 April 2024
Shariah
Source: PCM, Bloomberg, 30 April 2024
We remain dedicated to investing in ESG stocks because we believe they tend to enjoy stronger valuation and profitability, attributed to their adept risk management, innovative operational efficiencies, alignment with regulatory compliance, and enhanced reputation and brand equity, fostering higher shareholder returns and better profitability. We will consistently assess our holdings and adjust our portfolio as necessary to align with prevailing market conditions. Please click on the link to learn more or email us at cse.my@phillipcapital.com.my if you require any further information.
Disclaimer:
The information contained herein does not constitute an offer, invitation or solicitation to invest in Phillip Capital Management Sdn Bhd (“PCM”). This article has been reviewed and endorsed by the Executive Director (ED) of PCM. This article has not been reviewed by The Securities Commission Malaysia (SC). No part of this document may be circulated or reproduced without prior permission of PCM. This is not a collective investment scheme / unit trust fund. Any investment product or service offered by PCM is not obligations of, deposits in or guaranteed by PCM. Past performance is not necessarily indicative of future returns. Investments are subject to investment risks, including the possible loss of the principal amount invested. Investors should note that the value of the investment may rise as well as decline. If investors are in any doubt about any feature or nature of the investment, they should consult PCM to obtain further information including on the fees and charges involved before investing or seek other professional advice for their specific investment needs or financial situations. Whilst we have taken all reasonable care to ensure that the information contained in this publication is accurate, it does not guarantee the accuracy or completeness of this publication. Any information, opinion and views contained herein are subject to change without notice. We have not given any consideration to and have not made any investigation on your investment objectives, financial situation or your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any persons acting on such information and advice.