Since the Covid-19 pandemic broke out, ESG-themed investing has become the flavour of the year. According to Morningstar, assets under management (AUM) for ESG (environment, social and governance) funds rose 29% globally in 2020, while Lipper data showed that estimated net flows into ESG funds in Asia set a record high (since at least 2006) from the third quarter of 2020. This interest from investors was also captured by asset managers, who introduced new funds aligned to this trend. In Malaysia, at least six ESG-themed funds were launched in the first quarter of 2021. Last year, two such funds were added into the mix. These eight funds join the ranks of nine funds in Malaysia that either state their ESG and sustainability focus in the fund name or are qualified as a Sustainable and Responsible Investment (SRI) fund by the Securities Commission Malaysia (SC).

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