KUALA LUMPUR: Kenanga Traders Bhd has launched a excessive yield bond fund to supply revenue and capital development by investing within the World Excessive Yield ESG Bond Index Fund managed by Northern Belief Asset Administration.
Kenanga mentioned the fund, which was launched beneath the Kenanga Sustainability Sequence, tracked the chance and return traits of the ICE BofAML World Excessive Yield Index which is topic to sure environmental, social, and company governance (ESG) exclusions and ESG weightings.
Govt director and chief government officer Ismitz Matthew De Alwis mentioned the fund was the primary sustainable and accountable funding certified excessive yield bond fund within the native market.
“It’ll provide buyers a extra strong portfolio stemming from ESG analytics which can contemplate elements reminiscent of carbon effectivity and high quality of governance to mitigate dangers or seize new alternatives other than the usual quantitative and qualitative metrics throughout analysis,” he mentioned in an announcement yesterday .
Going ahead, De Alwis added that the efficiency of worldwide excessive yield bonds could be decided by the monetary well being of issuers, and in that regard, credit score fundamentals stay supportive of the asset class.
With its sustainable investing method, the fund represents the continuation of Kenanga Traders’ sustainable and socially-responsive investing roadmap following the introduction of the Kenanga Waqf Al-Ihsan Fund and the Kenanga Sustainability Sequence: Frontier Fund in 2021.