TheEdge
KUALA LUMPUR: CIMB-Principal Asset Management Bhd yesterday launched the CIMB-Principal Climate Change Equity Fund, the country’s first climate-themed fund, to tap into investment opportunities arising from climate change.
CIMB-Principal Asset Management Bhd chief executive Noripah Kamso (pic) said the fund would feed into the Deutsche Asset Management (Asia) Ltd’s DWS Invest Climate Change fund, which has invested about 46% in Europe and 41% in North America, and 5% in Japan.
The fund invests in sectors such as industrial, utilities, materials, consumer, consumer discretionary, information technology, financial and energy. The investments are spread out into themes such as 54% clean technology, 17% energy efficiencies, 24% adaptation and by sector (56% industrial, 9% IT, 8% materials and 11% utilities).
“The companies you are investing in are at infancy stage, so infant that the trend towards climate protection will rise, resulting in tremendous growth potential in these companies.
“I am confident that the 300 million units will be taken up within the offer period,” she said at the launch of the fund here yesterday.
As the CIMB-Principal Climate Change Equity Fund is regarded as a long-term thematic fund, Noripah said that investors should keep the investment for a minimum of five years to get the optimum upside of the investment.
With a minimum of RM1,000 investment. CIMB hopes to raise RM150 million by offering 300 million units at 50 sen each. This initial offer ends on Oct 17. CIMB has also commited to pledge RM1 for every RM1,000 investment to some organisations.
“We have not identified the organisations but will target those with tax exemption,” said Noripah, adding that CIMB will decide on the amount and organisations at the end of six months after its launch.
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