MYTHEO digital investment app launches ESG-themed portfolio

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KUALA LUMPUR: The MYTHEO digital investment management platform launched the country’s first fully AI-based portfolio on the subject of environment, social governance and corporate governance (ESG), called MYTHEO Global ESG.

In a statement, the owner of the GAX MD Sdn Bhd product said the portfolio will invest primarily in ESG-linked equity ETFs, particularly those with an investment policy that takes ESG issues into account.

This includes ETFs that have a balance between officers and directors when it comes to gender and racial diversity, strict anti-corruption policies, and strong internal controls in place.

“This will allow investors to align their financial goals with values ​​they firmly believe in as they begin to look beyond balance sheets and income statements to identify investments that are responsible and sustainable,” he said. he declares.

The Global Sustainable Investment Alliance (GSIA), in its latest biennial Global Sustainable Investment Review (GSIR), revealed a 15% increase in assets under management (AUM) of sustainable investments, from US $ 30.68 trillion in 2018 to 35.50 trillion US dollars in 2018. 2020.

He also predicted that ESG assets could exceed $ 50 trillion by 2025.

China and countries in the Asia-Pacific region are expected to contribute double-digit annual compound growth in responsible investment markets in the near future.

According to Gax MD CEO and Managing Director Ronnie Tan, MYTHEO Global ESG deployment was timely as investments in the ESG space gain momentum, at a time when the Covid-19 pandemic has exposed social and economic issues, which further reinforced the need for more sustainability and good governance practices.

“Through MYTHEO Global ESG, we want to provide a mechanism to help achieve a sustainable society through digital investment management for investors who want a healthier future environment, a fair and equitable society, sustainable business and good governance.

“You have to find a balance between social and economic returns. We believe that a company with high ESG and corporate values ​​can expect to achieve good economic returns over the long term, ”he said.

Tan added that funds with ESG mandates have been resilient in times of market uncertainty, especially given the Covid-19 outbreak last year.

Citing figures from Refinitiv Lipper, he said that ESG-linked funds generated an overall average outperformance of 3.78% higher than 2.15% for conventional funds for the year 2020.

The MYTHEO Global ESG portfolio currently has 11 ETFs in its investment universe with an exposure of 49.95% in the United States and 50.05% in the world.

The performance of this ESG portfolio was back-tested until July 2006, which generated an annualized net return of 9.27% ​​compared to the MSCI ACWI index at 8.93%.

However, GAX MD has cautioned that past performance is not a guide to future performance.

Existing MYTHEO investors can create a new MYTHEO Global ESG portfolio using their existing accounts.

New users can log into mytheo.my or download the MYTHEO app from the App Store of the Play Store.


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