The Covid-19 pandemic has made all lives change and opened more awareness on how the importance of strengthening investment portfolios amidst the era full of uncertainty. As the day goes by, more investors around the world seek sustainable investment by paying attention to the environment, social, and governance aspects of the company, while benefiting from the attractive potential investment returns.
At the beginning of 2021, PermataBank along with Batavia Prosperindo Aset Manajemen (BPAM) launch new sharia-based mutual fund product using the USD currency which allocates the investment to the global stock market by focusing on the sustainability principle or environment, social, and governance (ESG). This new mutual fund product is named Batavia Global ESG Sharia Equity USD that aims to fulfill the investment needs of PermataBank clients.
Sharia Foreign Stock Mutual Fund Investment Trend and Global ESG Investment Trend
As the development of the domestic wealth management market goes forward, the need of diversification to global capital markets grows bigger. One of the most popular investment products among the domestic wealth clients is sharia foreign stock mutual fund that provides investment access to stocks from various mega-companies around the world. Moreover, for the past year, the growth of assets under management of this mutual fund type has reached more than 70%, attaining Rp12.6 trillion, despite the pandemic and economic turmoil.
Consequently, the investment that focuses on ESG has become a global market trend for the last 3-5 years and is projected to continuously increase. In the first quarter of 2020, the global mutual funds and ETF with ESG focus gained USD40.5 million inflow, a 41% increase from the previous year. In the United States, during the first quarter of 2020, funds and ETF with ESG focus gained USD7.3 million inflow, the highest quarterly record in its history and much higher than the total inflow in 2019.
The Combination of Sharia and ESG
Batavia Global ESG Sharia Equity USD is a mutual fund that combines sharia investment and ESG insight, in which this mutual fund will invest in new trends and opportunities by focusing on sustainability issues that bring real financial effects. As proven last year - amidst the pandemic and economic turmoil - about 94% ESG-themed index in global stock markets projected better performance than the non-ESG index.
ESG-themed mutual funds are not only managing to increase the long term potential investment returns, but also are proven to have the stronger ability in surviving the declining market condition. Furthermore, companies with strong E, S, and G profiles are well managed, so these companies tend to give superior potential financial performance. By integrating the sharia principle and ESG factors into the Batavia ESG Sharia Equity USD mutual fund, clients get to filter risky companies and/or industries out of their portfolios with the help of sustainable investment experts.
Solid and Thorough Investment Process
Batavia Global ESG Sharia Equity USD has a unique and interesting investment process that consists of three steps of ESG filters. First, BPAM avoids companies from 9 sectors that are deemed as controversial as well as companies listed in UN Global Impact offenders. Second, BPAM will only include companies with good ESG score, based on MSCI assessment. Lastly, BPAM will prioritize companies that bring positive transformations along with various internal ESG indicators from BPAM.
In managing this mutual fund, BPAM works closely with one of the world’s most renowned investment management companies, BlackRock Inc., as the technical adviser. In addition to that, Batavia Global ESG Sharia Equity USD uses an investment approach that combines human investment knowledge with updated technology advancement, such as Big Data and Machine Learning.
The technology advancement helps portfolio managers to understand the economic activities in real time. Additionally, it also helps to read texts in various languages, far more practical than listening to conference calls or reading one report at a time. This allows the portfolio managers to process data in huge quantities in order to build portfolios with great potential returns, positioned to bring benefits in terms of environment, social, and governance.
In this era where data and technology are more advanced than ever, the usage of Big Data and Machine Learning can help investors gain competitive advantages in portfolio management, especially in this unpredictable time.
How to Purchase Batavia Global ESG Sharia Equity USD
Interested to immediately invest in dollar sharia mutual funds? You can purchase Batavia Global ESG Sharia Equity USD via PermataNet or the mobile banking app PermataMobile X starting from 27 January 2021. To buy Batavia Global ESG Sharia Equity USD, the required minimum initial investment that you need to prepare is US$10,000 or roughly about Rp140 million. Let’s manage your finances wisely and smartly with PermataBank and BPAM by investing in Batavia Global ESG Sharia Equity USD!
As privacy is an important aspect for the visitors of PermataBank website, PermataBank is determined to protect the visitors’ privacy. You may browse most part of PermataBank’s website without submitting any personal information. However, you may be asked to disclose certain information for PermataBank to be able to provide the service you request for. The privacy statement in this website is prepared to help visitors understand the types of information provided in PermataBank’s website, and how PermataBank handles the information.
PermataBank is the sole owner of the entire information in this website. PermataBank will not sell, share, or rent the information in this website to other parties in the manner contradictary to the aspect presented in this statement.
PermataBank will make continuous efforts to maintain the security of your personal information and protect it from manipulation, forgery, and irresponsible access and disclosure. PermataBank will also endeavor to maintain information accuracy.
This website may accommodate links to other sites. Please be aware that PermataBank is not responsible for the privacy practices of other sites. PermataBank strongly recommends website visitors to read the privacy statement of all sites that collect personal information. The privacy statement in this website applies only to the information presented in this website.
PermataBank reserves the rights to change the statement in this website at anytime. PermataBank suggests the visitors of this website to recheck the privacy statement from time to time and learn a number of new privacy practices or modification of PermataBank policies.
The use and content of this website are provided for your convenience. The information presented in this website is provided for you, without any kind of guarantee, either written or implied, included but not limited to the guarantee on tradeworthy goods and/or services, the compatibility for any purpose, promotion for a product without violating any rule.
This website may contain technical guidance that is inaccurate and typographical errors. PermataBank reserves the right to correct and/or modify the information in this website at any time and by any methods, without prior notice.
PermataBank is not responsible or liable for any material and non-material loss, which may be suffered by anyone or any party, as directly or indirectly resulted from the use of the information contained in this website, either in part or in entirety.
For your convenience, PermataBank can also provide some links to other sites in the Internet, which are owned and/or operated by any party. Please note that those sites are not under PermataBank control, and therefore, PermataBank is not responsible for the content of such websites.