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ValueCAP targets 12% annual growth in AUM
July 07, 2015 | Publication : The Sun Daily

Lee Weng Khuen

KUALA LUMPUR: ValueCAP Sdn Bhd, which has launched its first equity fund Malaysian ESG (Environment, Social and Governance) Opportunity Fund through its wholly-owned subsidiary VCAP Asset Managers Sdn Bhd, is aiming to achieve at least 12% annual growth for its assets under management (AUM) over the next two to three years.

Speaking to reporters after the fund launch, ValueCAP CEO Sharifatu Laila Syed Ali said the growth target will be supported by a diverse range of product offerings and business strategies. ValueCAP's AUM worth of RM5.5 billion at present, while VCAP accounts for slightly over RM4 billion.

VCAP is targeting to launch another two new ESG funds in the next two years. "We've not gone through the process to get approval for those funds, however there is a hope for Asean offering, something that is more thematic-based," VCAP CEO Shan Kamahl Mohammad said.

As for the Malaysian ESG Opportunity Fund, it is aimed at providing returns to investors by investing in the constituent securities of the FTSE4Good Bursa Malaysia Index. As at June 30, 2014, the FTSE4Good Bursa Malaysia Index has 25 stocks, of which mostly are blue chips.

The index comprises the eligible companies from the universe of the top 200 companies in the FTSE Bursa Malaysia EMAS Index.

"You will probably get blue chip kind of returns, because it's actively managed, hopefully you get decent performance and beyond blue chips returns that you have," Shan Kamahl said. He admitted that while growth in blue-chip stocks might not be huge due to high valuations, they can still offer good growth potential.

"There is a lot of pockets of opportunity to invest at this moment, I would say there is still good growth opportunity, especially at where the market is (right now)," he said.

The initial offer price for the fund is RM1.00 per unit, with an initial investment of RM250,000. Meanwhile, VCAP chairman Datuk Khairil Anuar Abdullah said with sustainable investments making up over 30% of the global investment market accounting for some US$21.4 trillion (RM80.7 trillion) in AUM, the launch of sustainable investment products will fuel the nation's ambition to make its capital market a global investment destination of choice for socially responsible investment.

"The fund will provide qualified investors the opportunity to diversify their investments and build a portfolio delivering sustainable long-term returns tied to ESG policies," he added.

ValueCAP is equally-owned by Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Bhd.